HSBC Direct lowered the interst rate offered on its online savings account to an annual yield of 3.0% today, almost two years after the bank offered a leading 6.0% APY.
Here’s their latest corporate communication, sent to all account holders:
Since I last wrote to you in mid September we have seen much change in the global financial markets landscape. In light of these changes, HSBC has reviewed the rate associated with your Online Savings Account. The rate will be adjusted to 3.00% APY* effective October 21, 2008. This rate remains one of the highest available and 7x the national average.
I’ll update the list of popular online interest rates shortly to include the latest bank to drop its rate. Where do you keep your short-term savings? Much of mine is still at ING Direct (currently at 2.75% APY), though I’ve spread out my savings to a number of banks and money market funds.
Updated June 16, 2011 and originally published October 21, 2008. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
Rank: Platinum
{ 3 comments… read them below or add one }
Darn. That’s a shame, but not unexpected.
My little experiment will just take a bit longer.
Brian ~ aka Glymmar
http://adollaradayquest.blogspot.com/
Yeah, I have my savings at ING and the drop to 2.75 is painful to see – however I can still say it continues to be leaps and bounds over the interest rate at my brick-n-mortar bank, which last I checked (which was a while ago so I could be even lower) was 0.5%.
Not surprising. With interest rates going down, I expect further cuts to money market rates in the coming months.