The Faucet Sink Haanging Storage Bag Holder by piokikio is the neatest gadget and so easy to use.
You just snap it around your faucet and that is it, ready to use. It held my steel wool sponge and a regular sponge just fine, there was still some room for another sponge, soap or whatever you need to put in there.
The Holder has holes in it so that the water can drain easily out, no mold or mildew on your sponges or in the holder. The holder may be small but it does a mighty job and is well worth the price.