HSBC Online Savings Rate Now 4.0%

This afternoon, HSBC Bank increased the rate of its Online Savings account from 3.75% to 4.00% APY. Like the savings accounts from EmigrantDirect and ING Direct, HSBC's OnlineSavings account has no minimum deposit requirement or monthly fees.

EmigrantDirect should be worried since HSBC has better name recognition, a better website, more online banking features, and more banking products such as checking accounts. But I still don't expect EmigrantDirect will raise its rates any time soon. I think it'll wait until after it introduces its new credit card which will supposedly have the best cash back reward in the nation. HSBC actually led Emigrant during the first half of September when HSBC was at 3.75% and Emigrant at 3.50%. So I don't think Emigrant is in any rush to respond.

I can finally update my chart now. I had been waiting for HSBC's move since EmigrantDirect did its rate hike back in September. I thought HSBC might decide to make a smaller increase, but I guess with so many banks increasing their money market and savings accounts to 4% and above, HSBC decided to make the big change.

ING Direct is falling way behind. From March through September, ING Direct did a fair job of staying within about 0.25% of the top banks like EmigrantDirect. There was even a short period of time in August when ING Direct came within 0.10% of EmigrantDirect and HSBC. But even after ING's latest rate increase, ING's Orange Savings Account is 0.50% behind.