Egg Savings Account

gemma1585

Does anyone have any advice regarding opening an egg savings account?

I tried to use the search but the word egg is too short!!!!!

Basically I don't really have much money spare at the end of the month but I want to try and put away something, no matter how small.

Thanks guys, X

simonkirkland

Why are you thinking of going for egg?

Alliance and leicester online saver has the best rate of interest (5.35%) at the minute... http://www.alliance-leicester.co.uk/savings/index.asp?page=online-saver


Egg is only 4.75%

I have both accounts (I used egg when they were the best) and I now have all my money in A+L? (after filling up ISA's first - which is what you shold be doing with the 1st £3000 of any savings (as it's tax free) - First direct is best for this (you have to move it in october) or Abbey postal isa)

Hope this helps

Simon

Milarky

I agree with Simon's comments

A&L Onlinesaver pays 5.35% on £1 up to £25,000. It is linked to an external bank account [which can be, but does not have to be, with A&L also]. In this respect A&L OLS works just like ING Direct's popular account - which pays 5.0%.

Egg's account is different from either of the above in that it is 'free standing' - you don't need to run a bank account in line with it, although you can, and would be advised to do so. It pays the Bank of England rate - guaranteed until Dec 2007. If you get an Egg savings account then you can sign up for Egg Money Manager too - which allows you to see other accounts in the same place. Egg offers an 'address book' feature - so you can make payments directly from there - much like a bank account.

But if you just want the best interest rate - and don't need to move the money often then the OLS looks the better bet. If you already bank with A&L too this allows instant access. But if you bank elsewhere there is a delay [as there is with ING] in getting the money in or out of the account.