Watch for Falling Rates: HSBC, ING Reduce APY

Written by Nickel - 14 Comments

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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.

Published on January 5th, 2009 - 14 Comments
Filed under: Banking
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About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

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Comments (scroll down to add your own):

  1. Why don’t you have http://www.DollarSavingsDirect.com on the list? 4% APY

    Comment by Shak — Jan 5th 2009 @ 8:33 pm

  2. Yea I got the notice as well. Looks like E-Trade has moved up to the number 1 spot. They are still yielding 3.01%

    Comment by Dan — Jan 5th 2009 @ 9:06 pm

  3. 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.

    Comment by Richard — Jan 5th 2009 @ 9:32 pm

  4. Why don’t you mention Capital One’s online savings account? They are also still at 3%

    Comment by Richard — Jan 5th 2009 @ 9:37 pm

  5. @#$%!!!!! Dammit.

    Comment by Bam Bam — Jan 5th 2009 @ 9:43 pm

  6. Did anyone notice that Dollar Savings Direct says it is a division of Emigrant? SO WHY DO THEY OFFER A BETTER RATE THEM EMIGRANT DIRECT?

    Comment by Richard — Jan 5th 2009 @ 9:45 pm

  7. 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.

    Comment by nickel — Jan 5th 2009 @ 9:49 pm

  8. I sure hope these don’t go much lower.

    Comment by thomas — Jan 6th 2009 @ 3:02 am

  9. GMAC Bank still has 3.25% APY on their savings, and a 12-month CD at 3.75% APY.

    Comment by cemccon — Jan 6th 2009 @ 8:44 am

  10. 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.

    Comment by William — Jan 6th 2009 @ 11:36 am

  11. 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.

    Comment by Kim — Jan 6th 2009 @ 12:18 pm

  12. Capital One direct dropped today from 3% to 2.64%, this isn’t good.

    Comment by Richard — Jan 8th 2009 @ 6:29 am

  13. I just completed the sign up process and transfers for GMAC Bank today, at the same time they lowered the interest rate from 3.25 to 3% Damn

    Comment by Richard — Jan 16th 2009 @ 3:30 pm

  14. 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.

    Comment by Danielle — Jan 19th 2009 @ 1:10 am

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