Rate Update: HSBC Direct Dropped to 2.60% APY and More

Though I no longer actively use HSBC Direct any more (my account is still open, but with no money in it), I have been keeping an eye on its rate changes, especially after other popular banks, such as FNBO Direct, etc., lowered their rates to below 3.0% recently. I want to see how long HSBC can hold the 3.00% APY for its online savings account.

Well, it didn’t last long. I just got an email from HSBC Direct with their latest rate. Effectively immediately, the new rate for the online savings account is 2.60% APY, joining the ranks of FNBO Direct (2.80%) and ING Direct (2.50%). Other banks that recently lowered their rates include (more on Savings Account Deals page):

• EverBank Yield Pledge Money Market Account: 3.76% 3-month bonus rate;
• GMAC Bank Online Savings Account: 3.25% APY;
• Venture Bank Wise-Choice Savings Account: 3.50% APY;
• UFB Direct Traveler Savings Account: 2.00% APY
• Capital One Online Savings Account: 3.00% APY

Among all the changes, UFB Direct made the most dramatic shift, going from 4.00% last month for its Travele Savings Account to 2.00% APY now. If you opened an account with UFB Direct when it offered top notch rate, it’s time to stay away from it.

On the other hand, three banks are holding up their rates pretty well whether others slashed back: Dollar Savings Direct still at 4.00% APY (Dollar Savings Direct reviews), E*Trade Complete Savings still at 3.01% APY, and WT Direct still at 3.06% APY. Let’s see when they will follow suit.

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