HSBC Direct Reduces Interest Rate to 4.5% APY
It was just announced that HSBCDirect is reducing the interest rate on its Online Savings Account from 5.05% to 4.50% APY. While not crippling I actually have enough money sitting in my savings account that I can see what affect the drop in the rates will do to the monthly interest I collect.
Last month i earned $174.12. The interest rate has basically gone done about 10% so I am going to miss out on about $17 in monthly interest in this account. Anyone who has a large number of 0% balance transfers is going to feel the sting more than me.
So what am I going to do differently? Probably not much. I am going to continue working to my savings goal for a house downpayment. I'll still keep putting the money in my EmigrantDirect which is still paying 5.05% APY.
If interest rates continue falling I may be inclined to finance a higher amount of the house when we purchase it and lock into lower fixed interest rates. I could then take the extra money I saved and pay down a higher interest rate mortgage I have on one of the two rental properties.
Update:EmigrantDirect reduced their rate to 4.75%. Still better than ING Direct and HSBC Direct
Related in Savings:
Switched My Wachovia Express Checking Account to No Fee (Jan 14, 2009) About a year ago I published a post detailing a service fee my Wachovia charged me because I had too many teller transactions in a month. My Express Checking Account allows me 2 teller assisted transactions per month and any...
Received Annual Bonus (Mar 20, 2007) I received my annual bonus last week. Its seems like every year these bonuses get smaller and smaller. Not that I am complaining - some bonus is better than no bonus. What would be even better is if these bonuses...
How Much Did I Save in 2006? (Jan 15, 2007) In 2005 I was able to I was able to save 56% of my income. It now time to see how I faired in 2006. 2006 was a big year for me - I bought a second property, an engagement...