HSBC Direct Rolled Back Rate to 3.25% APY After Promotion

So HSBC Direct’s three-month promotion has ended yesterday and, as promised, the bank rolled back the yield of its online savings account from 3.50% APY to 3.25% APY, a mediocre level. The purpose of the promotion was, I suppose, to attract new customers, but I am not sure how successful the campaign was because, even at 3.50%, there are a number of banks, such as EverBank, Washington Mutual, and FNBO Direct, that have non-promotional rates beating or matching that of HSBC Direct’s. Sure, HSBC Direct is a huge bank with a balance sheet that’s much better than those U.S. banks’ (guess that’s why they don’t need to offer a rate like WaMu does), but the offer was just not good enough.

Speaking of online banks, I mentioned earlier that I am considering switching bank, from Capital One to one with better rate. No, I am not going to WaMu, giving the problem they are having not, though I know my money will be safe if I use the bank. I am thinking of DollarSavingsDirect’s 3.75% APY with $1,000 minimum.

I am a rate chaser and want to get the most out of my money, especially when it’s tough to do anything else now.

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• EverBank: 4.75% APY, Dollar Savings Direct: 4.00% APY, FNBO Direct: 3.25% APY, WTDirect: 3.31% APY.

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