HSBC Direct has dropped the rate on its online savings account to 1.55% APY, down from 1.65%.
This puts it right ahead of mainstay ING Direct (1.50%) but behind FNBO Direct (1.90%) and WT Direct (1.76%).
With the Fed rates still at nearly zero, online savings accounts haven't seen their rates have any major shifts or trends recently. While they're offering much lower rates than in previous years, they're still the best place to put your short-term savings.
I currently use HSBC for my housing fund, but ING for my other short-term funds (emergency, once-in-a-while, etc.)
Which online savings account do you use? Answer our poll here.
About the author: Jason is the author of Automatic Finances: 17 Days to Your Financial Freedom, a guide to automated money management. He started investing thanks to a free lunch, and after finding out how he was getting the short end of the stick, he sought out how to do it right. More »
