HSBC Direct Bumps Up Rate: 3.50% APY

I almost forgot I still have a HSBC Direct account until I received an email notice this Monday from HSBC regarding the change of their HSBC Direct Online Savings Account rate. The new rate, effective June 2, is 3.50% APY with no minimum balance requirement (well, technically you do have to have at least $1 in your account to earn interests).

While the new rate is much better than their previous rate at 3.05% APY, which is in the lower half of my latest online bank interest rates table, the offer is only good for about two months, till August 15. After the promotional period, the rate will be determined by the market condition at that time, whatever that will be. For sometime, HSBC, like Emigrant Direct and ING Direct, was a leader in online savings offering, but these “old” direct banks all faded away lately. E-Trade Financial also did a rate increase last month, but at a much smaller pace.

When HSBC had their last promotion more than a year ago, I did jump in to take advantage of the 6.0% APY offer, but not this time. I just got my brand new Capital One Online Savings Account with a superior rate. Unless somebody offers a 4.00% APY, I am not going to move my money

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