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Rate Update: HSBC Direct Offering 6% APY

This article was written by in Saving. 3 comments.

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, it’s time to move it. You’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. That’s 11 times what traditional savings accounts offer. And checking accounts obviously can’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.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 3 comments… read them below or add one }

avatar Josef

After seeing this and doing some math i am pretty set on starting up an account on HSBC. I do have a question though. With my current ING account i am showing some sort of “Withholding Tax”. Is this normal? Can i expect the same tax on the HSBC account? Or is this rate another variable i have to account for?

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avatar brian

The comment from up above really bothers me… reliable ING DIRECT???? They are hardly reliable, unless you consider losing social securty numbers and peoples account information reliable. And it wasnt just 1 time, it was twice that it happened. I will stay with a TRUELY reliable company and that is HSBC!

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avatar Neel

I am surpised what brain has mentioned about ING Direct.. loosing ssn and account information? Can you please be more specific on what you are talking. I am an account holder with ING Direct (other than citi direct and hsbc direct) but I do not have issue of secuirty with any of them. all are good. – Neal

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