There’s a catch: If you want to earn 6.0% APY, you’ll need to deposit “new money” into an HSBC Direct account. Money transfered out and then back in doesn’t qualify; only your net increase does. This special rate will only last until April 30, and their regular interest rate is currently 5.05% APY.
It’s not worth it for me to start shifting money around, but if you’re interested, here’s the relevant text of their announcement.
Until April 30, your HSBC Direct Online Savings Account gives New Money 6.00% APY. So if you have money elsewhere, itÃ¢â‚¬â„¢s time to move it. YouÃ¢â‚¬â„¢ll make the most of your savings and be that much more secure.
During the New Money promotion, deposits from outside of HSBC earn a market-leading 6.00% APY. ThatÃ¢â‚¬â„¢s 11 times what traditional savings accounts offer. And checking accounts obviously canÃ¢â‚¬â„¢t compare.
I’m not a fan of the HSBC Direct web interface, and I am much less a fan of that company’s credit card practices. I keep some cash in an HSBC Direct account, but the bulk of my savings is still in reliable ING Direct, despite their lower rate (currently 4.5% APY).
Updated June 16, 2011 and originally published January 28, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.