HSBC Direct Interest Rate Update :: 3.80% APY
While this should not come as any surprise due to the recent rate decrease by the Federal Reserve, HSBC Direct has officially adjusted their Online Savings Account interest rate to 3.80% APY.
This is a far cry from the 6.00% APY that was being offered last year at this time on all new deposits but is understandable given the current conditions.
Even with this decrease, HSBC Direct is still offering a more competitive rate than ING Direct – who decreased their rate to 3.65% APY just last week.
However, be wary of transferring all of your funds over to a new bank that may still have a slightly higher interest rate.
As you can see with the timing between the rate adjustment from ING Direct and HSBC Direct, some banks will delay their adjustment in order to encourage new deposits. Just remember that the rates on online savings accounts are variable and subject to change at any time.
If you’re looking for something with slightly more stability in terms of the interest rate, you might want to consider setting up laddered certificates.