HSBC Direct Drops Interest Rate to 1.55% APY

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Last updated on June 9, 2011 Views: 547 Comments: 14

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.

Article comments

Anonymous says:

I like using percentages 🙂

Bring back the 7% savings!

Anonymous says:

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!

Anonymous says:

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

Luke Landes says:

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.