HSBC lowers savings rate from 6% to 5.05%

(Rates may be out-dated. Please see the Current APY Wiki for updates)

Update: FNBO has announced a new 6% offer on their online savings account. See this post for more details.

As expected, HSBC lowered the percentage on their Direct Online Savings Account from 6% to 5.05%. What does this mean for me?

Since I also have an interest checking account with them, I keep the minimum amount needed in savings to avoid monthly fees ($3,000 total). I don’t have much beyond the minimum in that account right now, so I will do nothing.

If you have a significant amount more than that currently in your HSBC account, then you might consider chasing a higher rate elsewhere.

Here are a few options:

1) E-loan Savings

  • $5,000 minimum to open
  • $500 required to stay open
  • Current APY – 5.25%

2) iGoBanking Savings

  • $1 to open – no minimum balance
  • Current APY – 5.3%

3) UFB Direct Money Market Savings

  • $1 to open – no minimum balance
  • Current APY – 5.31%

Of these three, I only have an account with E-loan. Though the name is cheesy, I love the website for iGoBanking. If I needed to open another account, it would probably be with them. In comparison, UFB’s website looks very spartan, like it was written last century.

Web aesthetics aside, rates, security, and customer service are what really matters with an online bank, and any of the three should be solid picks if you are migrating from HSBC.

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