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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{ 4 comments… read them below or add one }
I don’t think you wrote that right, their interest rate wasn’t 15.6% before… was it? That’s unbelievable if so.
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.
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!
I like using percentages :)
Bring back the 7% savings!