Watch for Falling Rates: HSBC, ING Reduce APY

I just got an e-mail from HSBC Direct stating that they’ve reduced the APY of their online savings account to 3.00% to 2.60%. This prompted me to check the rates at other banks, and I discovered that ING Direct has dropped to 2.50% APY. I’ve updated my list of online savings account interest rates accordingly.

14 Responses to “Watch for Falling Rates: HSBC, ING Reduce APY”

  1. Anonymous

    Hey its the rates dropping that give all kinds of 0% credit card offers and allow those in good financial situations to refinance homes at better rates…. Can’t have it both ways!

    I’m intrigued by the 4% rate some of you say you are getting though, might be worth opening an account to hold my emergency fund in (currently at ING).

    What is the deal with that bank, anyone know how they can afford to be SO far above the pack at this point? What were their rates 3 months ago? 6 months? How long has this division been open? How stable is the parent company? I have never heard of them before.

    I’m loath to open up yet another account at yet another online bank just to chase an interest rate that might not last.

  2. Anonymous

    AmTrustDirect last month offered an opt out without penalty to release CDs you had with them. They currently pay just 1 percent on new CDs! My CDs with them (from last summer) are paying 4 percent. I didn’t let them go. I wonder how many takers they got.

  3. Anonymous

    Also, Wamu is even lower now at 1.5%. I moved my money to DollarSavings after Wamu dropped to 2% and I couldn’t be happier. I am earning 4% . . . for now.

  4. RIchard: I believe that Emigrant/DSD is doing that because it allows them to attract new money (to DSD) without having to pay existing Emigrant Direct customers a higher interest rate. They’re banking on people being too lazy to switch. It’s rather clever, albeit a bit shady on their part.

  5. Anonymous

    Yeah that pissed me off this morning, I just moved money to these this week. Zions Bank also lowered their rates to 2.84. I am thinking about moving to WT Direct or E Trade but fear they may follow.

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