HSBC Direct Online Savings Back Up To 3.50% APY Until 8/15

I love no-fee no-minimum balance online banks because I can always keep them open in case they kick up another rate promotion. Also, no worrying about making a ton of small debit purchases at the beginning of each month!

HSBC Direct announced recently that they will be paying 3.50% APY on their online savings accounts, guaranteed until August 15th. Man, this big international bank hasn’t had a top rate in a while.

Shortly afterwards, smaller fry FNBO Direct has their their rate at 0.85% APY , though with no time guarantee.

Washington Mutual still has their competitive Free Checking + 3.30% Savings combo, which is where my base camp is (my review).

If you will always have $10,000 and don’t mind a bit of subprime shakiness (the account is still FDIC-Insured up to $100,00), there is also IndyMac Bank with their Online E-Money Market paying 3.85% APY.


  1. J,
    You posted this kinda late, they had this since 6/2 , Also, with rates obvious back on the rise, should people avoid CDs now? specially
    Long term CDs that locks your money in?


  2. Wachovia Way2Save offers 16% annual APY for June, July and August, and 5% for the other months in the first year.

  3. I shifted to Countrywide last month. They’re at 3.75% APY. (I’m leaving FNBODirect and pulling the last bits of spare change out of AMTrust.)

  4. The low eligble balance on Wachovia’s Way2Save account limits its value for most savers; but it might be good for new savers. Countrywide SavingsLink is the way to go; high rate and speedy 1-day bank to bank transfers! Of course, I’d keep your deposit under the FDIC insured limit ($100K invidual, $200K joint)–just in case their sale to Bank of America should fall thru.

  5. Big deal: Provident has been paying 3.5% for months. HSBC is one of the worst banks I’ve ever dealt with.

  6. The low eligible balance of the Wachovia’s Way2Save account is too low to provide any real value to most savers; but it might be good for new savers. In my opinion, Countrywide SavingsLink is the way to go for the rest of us; it’s got a high yield and ultra-quick 1-day bank to bank transfers. Of course, you’ll want to keep your deposit under the insured limit ($100K individual, $200K joint); just in case Bank of America backs out of their purchase agreement.

  7. Matt Schell says:

    I too switched up to Countrywide from FNBO for the 3.75% APY. Also, much faster transfers between institutions.

  8. I think it’s crazy that last year this time, promotional CD rates were 5.35% for 9 months. Thanks for sharing this info!

  9. Any other Midwesterners read this blog that wish they had heeded the emergency supplies post BEFORE the giant flood came?? 🙁

  10. I’m a midwesterner but luckily avoided the flooding. I am curious as to how many of the people that lost their house had flood insurance. Lots of places that flooded here had never been flooded before.

  11. You would hope most people in the normal flood plains had it. I doubt many in the “500-year plain” had any though. I mean, did you even know that existed?! I sure didn’t, though I’m typically not up on flood lingo….

    If anyone else out there is in flood land – I’m sandbagging for you!

  12. HSBC is awful. Their transfer interface is practically designed to induce non-sufficient funds fees. I’ve had $0.01 there since the 6% promo ended. If it weren’t for the $20 minimum transfer, that penny would be long gone, too.

  13. hsbc is awful. wamu is really nice.
    they treat me really special. They let me walk up all the way to theteller..just for me. They dont mind me peeking on their monitor or looking in their cash register or letting my son play nintendo ds while i do banking.

  14. HSBC direct savings online works fine with me, but just to be on the safe side, I have WaMu as well. Woohoo!

  15. Anyone have personal experience with IndyMac Bank that they can share? I have been using Countrywide’s SavingsLink, which has been great, but looking to spread the wealth. I would like to hear any comments, good or bad, before I open an account with them. Thanks in advance!

  16. Alliant Credit Union, which you can join as a PTA member, offers 4%.

  17. Anyone going with IMB with their E-Market account currently at 3.85%? Sure the rate is higher, but perhaps the Money Market account would be better for longer-term growth over a regular savings account, say with Countrywide?

  18. It sounds like HSBC isn’t the best when it comes to transfer time. I have had Emigrant from the start, but I’m afraid it may be about time to look for a new one (their rates are the worst and have been for a while). I just signed up with ING and they seem great, but with HBSC’s at .5% higher it’s hard not to open there as well. I always told myself I wasn’t going to be a rate chasers but it looks like I’ve succumbed to the pressure.

  19. Well Banc of America has acquired Countrywide. I just started with Countrywide, and I think I may already withdraw my funds. Looking at the Banc of America website, their regular savings account is a measley 0.25% and their money-market savings is 2.36%. Nowhere near Countrywide’s 3.85%. And why would a bank gobbling up another choose to keep the existing 3.85%? I fear that Countrywide’s rates will plummet or they’ll introduce some BS fees. Maybe not immediate, but over time. I just don’t get that warm and fuzzy feeling with Countrywide or Banc of America. And someone tell me why IMBank is a bad choice?

  20. Ah, after reading some recent headlines about IndyMac Bank, I think I’ll stay out. Man, alot of these online banks are too good to be true. Choose wisely I guess.

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