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Location: Georgia, on the Florida line, right above Tallahassee
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Interesting side effect of the Fed lowering the funds rate.
Did anyone else's savings rate drop? Just curious.
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.
We sincerely appreciate you saving with HSBC Direct.
Interesting side effect of the Fed lowering the funds rate.
Did anyone else's savings rate drop? Just curious.
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.
We sincerely appreciate you saving with HSBC Direct.
It was 4.25....drat.
double drat..I just opened a savings with them because of the interest rate
ING did the same thing. I thought that the Fed lowering the rate reduced the cost by which banks borrowed money, thereby automatically increasing profit margin, right? Wouldn't then it be easier for the banks to yield higher rates without affecting the bottom line?
Wouldn't then it be easier for the banks to yield higher rates without affecting the bottom line?
No, because the rates on the loans the bank offers are going down too. It makes little sense for the bank to give you 4.25% in a savings account when it can get money cheaper else where.
Yup, the people that actually did it right and have savings are screwed again. And the idiots are probably going to lower the rates again today.
We really do have a broken system. Almost makes you want to do things wrong and let the gov't pick up the pieces. Lowering the interest rates during the housing boom got us in this trouble to begin with and now they are going to start all over again. What a bunch of morons.
Yes - got an email from them (HSBC) yesterday. Every time the fed has a rate drop expect this to happen. This is still one of the best deals out there.
Many loan rates are tied to the prime rate, so when the FED lowers rates the interest banks are collecting on loans goes down and the interest banks pay on deposit accounts also goes down.
Yup, the people that actually did it right and have savings are screwed again.
If inflation is going down the lower rates aren't screwing anybody. Despite the push-cost inflation people are focused on (oil etc) there are many signs of deflation in the air, hence why the fed is pumping money in the system.
Many bank checking and savings accounts pay .20 or less, which makes those 3.5 rates seem downright giddy.
Stocks are down.
Bonds are down.
Money market rates are down.
Savings rates are down.
There is virtually nowhere savers can stay ahead of inflation... and save for retirement. Exit social security, and that will be the definition of screwed.
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