Over recent weeks many Egg customers have been upset and outraged after Egg officials decided to close the credit card accounts of around 161,000 customers, claiming that the credit profiles of the customers affected had deteriorated since the originally opened their credit card accounts. This was angrily disputed by many of the customers who had been told that their cards would be withdrawn, with a recent poll showing that over 40% had never missed a repayments and claimed to have good credit.

The financial giant has now upset even more customers by announcing that they will be cutting the interest rate on their savings account by double the base rate cut, slashing the interest rate that can be earned by 0.5%. This move is set to affect around half a million savers, who will join the other 161,000 upset customers. The Egg savings account was guaranteed to pay at least the base rate in interest up until the end of 2007, but as soon as this guarantee ran out Egg looks to have taken the opportunity to slash the rate.

Savers that do not want to lose out on the returns that they receive on their savings are now being advised to shop around for a more competitive savings account where a higher rate of interest can be earned. There are a number of financial institutions – often foreign ones that are new or fairly new to the UK market – that are still offering very competitive rates on savings, and his includes the Indian bank ICICI, which is offering 6.41%, and the Icelandic bank Kaupthing Edge, which is offering a rate of 6.5%, which will remain on hold despite the recent interest rate cut.