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HSBC Direct Drops Interest Rate to 1.55% APY

This article was written by in Banking. 14 comments.

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 1.10% APY as of June 2010.

To recap, ING Direct is now at 1.10% APY, FNBO Direct is currently at 1.10%, E-Trade Bank has moved a lot from 3.01% to 0.50%, and DollarSavingsDirect is currently at 1.20%.

Also notable is WTDirect. This account offers 1.16% 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.

Updated June 9, 2011 and originally published January 7, 2009.

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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 .

{ 4 comments… read them below or add one }

avatar 1 Anonymous

I don’t think you wrote that right, their interest rate wasn’t 15.6% before… was it? That’s unbelievable if so.

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avatar 2 Luke Landes

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.

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avatar 3 Anonymous

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!

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avatar 4 Anonymous

I like using percentages :)

Bring back the 7% savings!

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