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HSBC Rate Drops to 3.25% APY, WaMu & FNBO Rate Leaders

Posted By Jim On 09/16/2008 @ 12:01 am In Banking | 1 Comment

For anyone wondering what will happen to HSBC Direct’s [3] 3.50% APY, wonder no longer. As of today, 9/16, the rate will fall from 3.50% APY to 3.25% APY. It appears that they’re shifting emphasis over to their CDs from their online savings account as the 6-month CD rate is 3.75% APY, 0.25% higher than the original savings account rate. Oddly enough, their 12 month is giving 3.70% APY.

Of the best savings accounts [4], this puts Washington Mutual [5] with their 4.00% APY online savings account rate farther ahead though the liquidity and capitalization concerns pushed their stock down BIG on Monday. If you are worried that they’ll go under, FNBO Direct [6] (division of First National Bank of Omaha, which has been in business since 1857) is offering a 3.50% APY and there hasn’t been a peep about them having solvency problems.

This is only a concern for people wondering where they should put their next dollar. I wouldn’t move my funds from HSBC Direct to FNBO Direct or WaMu because the 0.25% to 0.50% APY difference isn’t worth the interest you would lose as the funds shifted from one account to another.


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[3] HSBC Direct’s: http://www.bargaineering.com/articles/r/hsbcdirect.php?tag=hsbc325

[4] best savings accounts: http://www.bargaineering.com/articles/top-5-online-banks-savings-or-checking-accounts.html

[5] Washington Mutual: http://www.bargaineering.com/articles/r/wamu.php?tag=hsbc325

[6] FNBO Direct: http://www.bargaineering.com/articles/r/fnbodirect.php?tag=hsbc325

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