HSBC Direct just raised their interest rate to 3.50% APY, leading many of their competitors. By comparison, ING Direct sits at at 3.00% and E*Trade remains at 3.15% (they are three of the five online banks I considered the best online savings accounts).
Is it worth it for you to move your funds from a 3.00% APY interest rate bank account to a 3.50% APY interest rate bank account? No, because the time your funds are in limbo, not earning interest, will make the effort not worth it (unless you have a ton of money). However, the cost to open a new bank account is practically nil and HSBC used to be one the leaders prior to the recent string of Fed interest rate cuts.
Also, this rate is guaranteed through August 15th, which means they can increase or decrease it over the next two+ months. So, use HSBC Direct if you don’t have an account but don’t bother opening one to transfer funds in for this rate.
(Thanks Nickel!)
(Photo by superciliousness)
