HSBC Direct Drops Interest Rate to 1.55% APY

HSBC Direct must have heard that I was planning to transfer some of my savings to the bank, which until yesterday had been offering 3.0% APY. Following other banks that lowered interest rates for the new year, HSBC dropped their interest rate 13% to 2.6% APY and is now 1.55% APY as of May 2009.

To recap, ING Direct is now at 2.5% APY, FNBO Direct is currently at 1.65%, E-Trade Bank hasn’t moved from 3.01% since December, and DollarSavingsDirect is currently at 2.0%.

Also notable is WTDirect. This account offers 1.76% APY on balances over $10,000, and if you don’t have that much cash in the bank, you’ll still get that high rate for 60 days after owning the account.

I’ve updated the list of high-yield savings and checking accounts.

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Tagged as: Banking, dollarsavingsdirect, etrade, fnbo direct, hsbc direct, ING Direct, savings account, wtdirect

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Flexo, the owner and creator of Consumerism Commentary, has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow him on Twitter.

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tom

I don't think you wrote that right, their interest rate wasn't 15.6% before... was it? That's unbelievable if so.

Flexo

A reduction from 3.0% to 2.6% is a thirteen percent reduction (a little higher, actually). That's the *relative* amount of the decrease. You could also call it a 0.4 percentage point reduction, the *absolute* amount of the decrease. The relative approach is better for comparisons with prior decreases or decreases at other banks.

ratbert03

Venture Bank Direct is still at 3.5%, I moved everything from Emigrant Direct to Venture yesterday after I saw Emigrant drop their rate. Hopefully Venture doesn't follow suit! Thanks for maintaining the high-yield accounts list!

thomas

I like using percentages :)

Bring back the 7% savings!

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