Life after HSBC 6.0% APY – Where to next?

Close Encounters of the Cheap Kind has a new home at www.CheapEncounters.com!

I am a complete interest rate whore when it comes to my savings. Over the past couple of years I have moved my excess funds from ING to Emigrant Direct back to ING to Presidential Bank to Emigrant Direct back to ING to ELoan to Presidential again and then back to HSBC. The only reason it is in HSBC Internet Savings is that they are paying 6.0% APY through April 30, after which it goes to whatever their normal rate is (looks like it will be 5.05%). The obvious question now will be where to move the funds after the promo is over? There is a discussion on the topic over at FW Finance here.

It looks like the winner will probably be AmTrust Direct, which is currently offering 5.36% APY. The nice thing about this account is there are no fees and no minimum balance requirements. The only minimum is $1,000 to open. There is a good summary of the current rates here.

The funny thing is that it seems to be the norm for online banks to thumb their noses at current customers. In the HSBC promo as well as a promotion ING ran last year, the promotional rate is good only on new deposits. If you held money elsewhere because the rate was marginally higher, this was such a great opportunity. If you were actually loyal to HSBC or ING in these instances, the message is “Sorry you dumb bastard! Even though you have been a good customer to us we would prefer to reward customers that will probably take their money in a few months when we kill this promo.” Doesn’t exactly seem like a good way to build customer loyalty, does it?


April 12, 2007 - Posted by | Savings

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