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After a summertime promotion, HSBC Direct is lowering its online savings account APY to 3.25% APY.
The account had offered a 3.50% APY, originally launched in June but extended until 9/15 about half-way through the promo.
While I'm a fan of HSBC and use it to hold our housing fund, dropping back to 3.25% puts it further out of the top-rate leaderboard, with DollarSavingsDirect (3.75% APY), FNBO Direct (3.50% APY) and WT Direct (3.26% APY) leading the way.
With the drop in HSBC's APY, I think the selection factors now make ING Direct the better choice for most people. Also credit tightening and Fed interest rate cuts will pressure savings account APYS for the rest of the year.
I assume the reverse will be the case in the UK as top high street banks Lloys TSB and HBOS will merge to cut down the risk but we'll see a domineering effect within the mortgage and savings sector of financial services.