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.

This morning, online bank HSBC Direct ended the extended promotion in which customers were offered a savings account earning interest of 3.50% annual percentage yield. This was planned; when the promotion was extended back in July, the company warned that after September 15, the interest rate would return to normal, which it has.

The interest rate is still competitive, at 3.25%. I don’t suggest chasing the highest rate at all times when the difference is only a few basis points, but if you’re opening a new account, it helps to weigh the interest rate with your need for excellent customer support.

With recent events, you may even want to forego high interest rates when the stability of the bank is in question. With FDIC insurance, it’s unlikely you’ll lose your money, but it helps to consider a bank’s stability to avoid any hassles or delays.

For example, Washington Mutual is currently offering 3.75%, one of the highest interest rates for a liquid savings or money market account you can find. But according to news reports, the bank is in trouble. Rates are high to attract capital, something WaMu needs at this point. If WaMu is acquired by another bank, a withdrawal during a conversion period may not be processed as quickly as you might expect. As long as you stay under the FDIC limits, your money will be there, but perhaps not at the precise minute it is needed.

FNBO Direct also offers a relatively high interest rate of 3.50% APY. The bank behind the online savings account, First National Bank of Omaha, has four stars out of five from BankRate and a Safe & Sound CAEL Rating of 2 (with 1 being the best).

I still have most of my cash at ING Direct, though I’ve begun spreading it around to other banks to take advantage of higher rates. ING Direct don’t offer the most interest but they are consistently not far from the top. Their website is simple and I’ve never had any problems with accessing my money. I hear their customer service is usually top-notch, but I’ve never had to use them.

If you have $250 to deposit, you can earn a $25 bonus by opening a new account at ING Direct.

I received an email to inform me that HSBC Direct has extended its “promotional” interest rate on the online savings account of 3.5% APY to September 15, increasing this promotion by one month.

I’m not sure what the difference is between a “promotional” rate and any other rate; as always, interest rates on savings account are subject to change at any time. Perhaps HSBC Direct has simply planned when it will lower its rates while other banks generally keep that information private until the change occurs.

3.5% is the best rate you can get right now for internet-based savings accounts backed by major financial institutions. This rate would put HSBC Direct at the top of the list, but I’m keeping them listed with their last known non-promotional rate.

HSBC Direct does not offer a referral program, however. When you open an account at ING Direct, you can earn a $25 bonus immediately (accessible after 30 days) simply using a referral link generously offered by Consumerism Commentary readers (and one-time visitors). Keep in mind you need to open the account with an intial deposit of at least $250, and keep your money there for a month.

I’ve updated the list of referral links to include some new ones as each link can only be used once.