HSBC Direct's Online Savings Being Raised to 4.65%
May 17, 2006 - 2:35 PM by Ken Tumin
HSBC Direct will be increasing the yield on their Online Savings Account to 4.65% APY tomorrow. The website is still showing 4.50%. I saw the new rate advertised on Bankrate and called to confirm. The CSR told me that this new rate will take effect on May 18th. Also, I asked about any new sign-up bonuses or promotions. No luck. The CSR said that only invitational promotions are available.
I thought HSBC might match Citibank's latest rate increase to 4.75% APY (see post). But it looks like they don't care about being on top. An HSBC official was quoted on May 5th in the New York Times saying that "HSBC Direct does not feel compelled to offer the very highest yield." At least they feel compelled to remain close to the top, unlike ING Direct. Now the question is when will Emigrant Direct respond. Do they want to be the rate leaders or are they content with being close to the leaders. If they don't respond soon, they'll be with ING outside the ball park.
I thought HSBC might match Citibank's latest rate increase to 4.75% APY (see post). But it looks like they don't care about being on top. An HSBC official was quoted on May 5th in the New York Times saying that "HSBC Direct does not feel compelled to offer the very highest yield." At least they feel compelled to remain close to the top, unlike ING Direct. Now the question is when will Emigrant Direct respond. Do they want to be the rate leaders or are they content with being close to the leaders. If they don't respond soon, they'll be with ING outside the ball park.
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Rammesh (anonymous) - #1, Wednesday, May 17, 2006 - 10:53 PM
I heard from one of my friend the following:
"Merrill Lynch is coming out with their promotional CDs from 5/22 to 6/16 for new funds only. The new rates should be available around 5/18 so remember to call your ML advisor for more update!"
Are you aware of any?
Anonymous - #2, Wednesday, May 17, 2006 - 11:45 PM
Vanguard CA money market is 3.28% tax free ( fed & CA ). Maybe a good deal depending on one's tax bracket
Banking Guy (anonymous) - #3, Thursday, May 18, 2006 - 1:57 PM
Rammesh, no, I haven't heard of this Merrill Lynch promo. I'll have to look into this. Thanks.
About the Vanguard CA money market account. That 3.28% yield is definitely attractive. For someone in the 35% fed tax bracket that can be equivalent to 5.86% APR. (assuming 9% state income tax). Thanks for the info.
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