Egg is cutting its savings rate by 0.15 per cent from May 17.
The cut follows the 0.25 per cent reduction in the Bank of England's base rate announced on April 8.
The annual rate on the Egg savings account will reduce to 5.85 per cent gross. The egg cashcard account rate will fall to 5.35 per cent a year gross.
Egg will continue to guarantee the rate on the savings account will remain 0.5 per cent above the base rate until January 1, 2000. The cash card account will be at least the equivalent of the Bank of England's base rate for the same period.
Following this Egg will guarantee that until January 1, 2001 the rate on the non cashcard account will be at least the same as the Bank's base rate. The rate on cashcard will be no lower than 0.5 per cent below the base rate.