Those looking for a good home for their savings may be interested to hear about a new product launched by Egg.

The Egg savings account was launched today (June 26th), as its new Bonus Savings Account, allowing customers to open an account with an initial balance of at least £1 and is available to both new and existing Egg customers.

This competitive savings account offers an interest rate of 2.8%, which includes a fixed savings rate bonus of 1.55 per cent for the first 12 months.

Furthermore, this savings account does not come with any limits or charges on cash withdrawals.

Sharon Maguire, head of banking products for Egg, states: “During times of unprecedented low interest rates, customers need to have the peace of mind that their savings account is making their money stretch further.”

Those on the search for an online savings account may also wish to consider the second issue of the Principality e-Saver, launched earlier this month.

Principality has increased savings rates on its instant access e-Saver account from 1.65% to 2.85% .

This is a very significant change and is likely to cause similar reactions from competitors which is great news for savers. There are terms and conditions that apply and this rate only applies for a year after opening the account (as with most accounts).

Before Principality announced the increase, ING was at the top of the table, offering one of the best rates available at 2.75% on its ING Direct Savings Account, with the Sainsbury’s Internet Saver close behind at 2.60%.