This blog contains some simple tips and advice from two regular guys. We're not accountants, financial advisors, or brokers, so follow, ignore, or discuss our ideas as you see fit.

Friday, March 28, 2008

Savings account rates are down again

Posted by Matt

I received another notification from HSBC that the interest rate on my savings account has dropped again (like it did not once but twice in January). Paul's choice to lock in rates with CD's is looking better and better.

At HSBC Direct we are committed to helping you with your savings goals by providing the best rate we can. As you are undoubtedly already aware, there has been a general trend of reducing interest rates in the U.S. market over recent months....We have reduced our Online Savings Account rate by 0.50% to 3.05% APY effective 3/20/2008.
I'm grateful that HSBC at least notifies me of the rate changes; my primary bank does not.

At HSBC Direct we are committed to a direct and open relationship with you, even if we have to pass on news about reductions in our rates. We think this is fair to our customers and simply the right thing to do. The good news is, you're still getting a competitive rate — 7x the national savings average.
I just have to remind myself that this is my emergency fund, so I shouldn't really think of this as investment that needs to bring in a great return. The most important aspects of this account are that it is easily accessible and safe.

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