I received this disappointing bit of news not too long ago:
We are writing to inform you that based on the recent drop by the Federal Reserve, HSBC Direct has adjusted your Online Savings Account rate to 4.25% APY. At 9x the national savings average, you are still earning one of America’s highest savings rates.
I was pretty enthusiastic about my Internet Savings Account when I first signed up, but now I hear that the Fed is likely to drop the rate again soon. How low will HSBC go? Is it time to start exploring new places to keep my savings/emergency fund? I checked other ISA's and HSBC definitely isn't the highest, but I don't want to hop from bank to bank chasing quarter points, either (see more on this from Paul here).
I'm also wondering whether I should put any more money into my savings account at all. It contains plenty of cash to cover most small to medium emergencies, so it might be worthwhile to start thinking again about putting my extra money toward real long-term investments (i.e., bump up my retirement savings rate) or maybe paying extra on the mortgage. Paul and I have debated the latter several times and I don't think we've come up with a really solid answer yet.
Have any of our readers paid off their mortgages early? If so, would you make that same choice again?