Looks like HSBC Direct is again dropping the rates on their high interest savings accounts. It was earning 4.25%, but today I received the following email from HSBC notifying me that the new interest rate is 3.80%:

Subject: HSBC Direct Interest Rate Update

We are writing to inform you that based on the recent drop by the Federal Reserve, HSBC Direct has adjusted your Online Savings Account rate to 3.80% APY*. At 8x the national savings average**, you are still earning one of America’s highest savings rates.

HSBC Direct will continue to evaluate and respond to market changes so we can provide you with competitive rates. And if your rate changes, whether up or down, we are committed to always letting you know.

You can feel confident knowing your savings are with HSBC Direct. We’re part of HSBC Group, one of the largest financial institutions in the world, and have over 140 years of experience helping customers manage their savings.

It may be time to start shopping for a new high interest savings account. However, I’m sure all of the other major players will follow suit and cut their rates in due time. Furthermore, I’m guessing that even more interest rate reductions to all the major high yield savings account are in store if the predicted fed funds rate cut happens this Wednesday. I guess for now I’m gonna stick it out with HSBC and see how things stabilize over the next few weeks. I’ll then re-examine my choice of online banks to store my savings in to get that high interest rate.

Keep your chin up,

The Money Kings

Keywords: HSBC, drops, interest, rate, fed funds, 3.80%