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HSBC Direct has increased the APY of its online savings account to 3.50%, up from 3.05% (press release).
But here's the catch: it's only until 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.”
Why HSBC would choose to make the rate change a temporary one (or announce it as a pre-planned temporary adjustment) I'm not quite sure. My best guess is that they are trying to get to the top of the APY lists for people looking to save their economic stimulus checks.
We currently use HSBC to hold our housing fund, and while the online interface can sometimes be a bit klunky and they take their time moving money around, their rates have always been competitive.
HSBC follows E-Trade as one of the only banks to increase the rates of their online savings accounts in the recent past.
I'd be inclined to agree that this move is aligned with the stimulus check, but I'd also throw out there that HSBC Direct has a history of very aggressive interest rates, perhaps temporarily to grow market- and mindshare, or just because this new marketplace of online savings accounts is very competitive.
First National Bank Online has consistently offered higher rates than HSBC Direct, and HSBC might not be able to lower rates.