6% Savings Account Promos Like Yesterday's Toasters

POSTED ON FRIDAY, FEBRUARY 9, 2007 BY Ken Tumin

This Bankrate article has a good discussion about the high yield savings accounts today and how banks like HSBC are using high yield promos like a gift toaster to attract new customers. Both HSBC Direct and Citibank's e-Savings account have attracted about 300,000 customers. Citibank's recent move in dropping the rate on its e-Savings account points out that these banks will often offer temporary high rates. After the promo is over, the rates may fall and no longer be competitive. Banks hope that most people will feel the rates are good enough to stick with them. It'll be interesting to see what happens to HSBC's rates after April 30th. Will they return to a decent 5.05%? Or will they follow Citibank and drop the rates even more? Please refer to my HSBC 6% promo post for more info.

The Bankrate article also mentions new savings/checking accounts and promos at other banks including Salem Five Bank's new eSavings account (see my post), iGoBanking (see my post), Everbank's FreeNet checking (see my post) and ING Direct's new Electric Orange checking account (see my post).

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8 Comments.

Duck | Feb 7, 2007 | Comment #1

Very good article you always got to keep a eye on those statements Just got mine from firsthorizon they were giving me 4.5 but were close to me and with the added benefits(Cd matching ,bank&personalchecks, Star privledge(free stuff experian,gift cards)B&M building,hours open(till 8pm weeknights))like that. So I called the girl that opens my account told here the rate was to low droped to 2.9 in jan I told here I could get better elsewhere she said she would call the main building and get the promo for the account. So it doesnt always hurt to call, some banks are very diffrent then they use to be (take the rate and like it)

Banking Guy | Feb 7, 2007 | Comment #2

Good point. Thanks!

Anonymous | Feb 7, 2007 | Comment #3

I'd like to see more articles on the games bank like HSBC play with the ACH transfer delays. 4 days lost interest equals a .3% decrease in the APY over a 3 month period.

Your average Joe is not going to be aware of this fact when they see the HSBC 6% promo rate.

Anonymous | Feb 7, 2007 | Comment #4

I had to laugh when I saw title of this topic re yesterday's toasters. On Monday I was reading the Phila Inquirer (page B5), and there was a full page ad for Hyperion bank. At the bottom of the ad it said Open an account and get a free toaster (certain restrictions apply). I laughed out loud when I saw that. A toaster? Are they kidding me? And then there's the "certain restricitons apply" Maybe the people falling over themselves figuring out how to get into NFCU can help overcome these restrictions? LOL

Anonymous | Feb 7, 2007 | Comment #5

I agree with the above poster re HSBC. They richly deserve the criticism they receive regarding obscenely long check holds, and regarding account crediting delays in the case of ACH transfers. If they think people are unaware they need to think again. If they believe their customer abuse does not hurt their overall business they need to reconsider. HSBC is among the most flagrant slow creditors out there. They suck, but so far they have arrogantly refused to reform their wayward policies. Avoid these leeches. They make a living by paying ZERO percent interest on deposits they have received, but will not admit to having received.

Anonymous | Feb 8, 2007 | Comment #6

Today I cancelled my application to HSBC after a wait from 1/27. They had my check for $300K and had me "jumping over every obstacle known to mankind". First they needed more verification of address, then they needed a money order of $1 to open the account. Finally today they said my account was clear EXCEPT that it would take 6-8 days to send the password etc., I asked if I would start gaining interest today and they said no, not until my check cleared,(They had that check since 2/1) That was the last straw and I said, cancel and return my check. So meanwhile I managed to get accepted to Navy FCU and that is certainly a better deal. Banking Man, thanks for all the help and info every day.

Anonymous | Feb 14, 2007 | Comment #7

Whats the best CD rate in central florida for any amt and any term? I'm afraid of the internet banks so don't quote those please. I can't join the Navy FCU either. THANKS !! ASAP is nice if possible.

Banking Guy | Feb 14, 2007 | Comment #8

I would check out Fairwinds Credit Union. They're widely available in Central Florida and their current rates are as high as 5.55% APY for 60mo.

Another good choice is CFE Credit Union. They have 36mo CDs with a rate of 5.54% APY.

If you don't live near one of these, I would suggest using the credit union finder tool that I describe in this post.

I hope this helps.

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