Just received this email earlier today:

HSBC Direct announces Online Savings rate increase to 3.50%

– High Rate Rewards Savers on New and Current Funds —

HSBC Direct has increased the rate for existing and new Online Savings Account customers to 3.50% APY on all funds – both new and current. The offering rewards savers with a rate that is nine times the national savings average, and is up from 3.05% APY. The increased rate is effective as of today, and will run through August 15, 2008.

“We are committed to helping our customers get the most from their money, and we constantly look for ways we can reward them,” said Kevin Martin, executive vice president and head of HSBC Direct U.S. “Increasing our HSBC Direct Online Savings Account to 3.50% — when other savings rates have been falling — gives new and existing customers an even better reason to start saving more.”

I have much of my discretionary savings swooped from my checking account into HSBC each month, so this is a nice surprise. Warning: I think the web site is cumbersome. The rate is better than the 7-month CD the bank is touting on its site for 2.80 APY. Now if they’d just give away $25 or so for opening an account or sending referrals…

I have other high-yield online savings accounts that pay less in interest.

ING currently offers 3.0 percent. E-Trade’s is 3.15 percent. You’ll only earn 2.75 percent with Emigrant direct.

Banks always have inertia working for them. Getting a new savings account with a higher interest rate isn’t top priority on most to-do lists, nor is it probably worth it to collect savings accounts for just a few extra basis points. How many consumers have had their money earning next to nothing for months without taking action?

But with an abundance of savings options out there for go-getters, banks have to do something to entice them. What better than to offer interest rates that are nearly double the 2 percent rate set by the Federal Reserve?

How about you? Spotted any good rate offers out there?

This entry was posted on Monday, June 2nd, 2008 at 2:16 pm and is filed under deal of the week. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.