HSBC Online Savings Rate: Predictions? History

[ken1706]

I thought this would make a good poll. What do you think HSBC's rates will be after its promotion is over on April 30th?

Currently, its online savings account is the leader at 4.80% APY. I'm hoping they stay the leader after April 30th. In the past year, they've done a good job at staying competitive. Here is their rate history:

01/30/06: 4.80%
12/15/05: 4.25%
11/04/05: 4.00%
09/01/05: 3.75%
08/11/05: 3.50%
07/07/05: 3.25%
03/25/05: 2.88%

For reference, here's the targeted federal funds rate history.

01/31/06: 4.50%
12/13/05: 4.25%
11/01/05: 4.00%
09/20/05: 3.75%
08/09/05: 3.50%
06/30/05: 3.25%
05/03/05: 3.00%
03/22/05: 2.75%

Before this 4.80% rate, HSBC has stayed close to the funds rate. That's why I'm thinking they may just keep the rate at 4.80% since the Fed will almost surely up the funds rate to 4.75% later this month.

[Ima saver]

I hope you are right, although I did not open an account with them.

although I certainly hate to fuss over it sometimes, I must admit I much prefer the "surfing" of savings accounts I do now to the "surfing" of credit cards I was doing before.

[BTC]

The amount of time it takes for HSBC to process transactions is a significant drawback, in my opinion. Unless their rate is significantly higher than Emigrant Direct, I'll be transferring my funds from ING to Emigrant at the end of ING's Winter Save Up Sale.

[pyotr]

HSBC takes about 3-5 days to process a transaction. This is acceptable for a bank with ATMs around the world, with unbeatable security. As for as the people thinking HSBC is going to have a lower interest rate after April 30th, you guys are just plain wrong on this one. I say this totally objectively, with no dog in this fight.







except for my having to post nudie shots of myself.

[BTC]

3-5 business days is a lot of downtime in comparison to 1 or 2 business days. If HSBC's rate is substantially higher than their competitors, I'll move my money to HSBC. Otherwise, I'm planning to transfer everything back to Emigrant Direct. Worldwide ATM access to my savings account isn't really a consideration for me and I'm pretty sure that ING isn't going to offer a competitive long term rate.

[sweeps]

I will be shocked if HSBC goes to 5% or higher. (Pleasantly shocked though.) My money is on them keeping it at 4.8%.

I agree -- HSBC's transfers are dreadfully slow -- I think that topic has been beaten to death now. But keep in mind the best days to schedule transfers are Sunday, Monday, and Tuesday. The WORST time you can schedule a transfer is after 8pm Eastern on Wednesday. Source

[Russell]

I too think they'll be around 4.85%

Speaking of transfers has anyone tranferred directly from ED to HSBC ? Last time I tranferred using my bank as the intermediary bank and the transaction took one week