I just got an email from HSBC Direct saying that they’ve upped my interest rate to 3.5%! WooHoo!
Most of the time, when I say “WooHoo” it’s dripping with sarcasm but this time I really mean it. It was a very pleasant surprise. The rate is effect until August 15, 2008 and may adjust after that, but 3.5% is a very decent rate with the federal funds rate so low (currently 2%).
Of course, it’s all to get more money under their control since the amount they can lend and invest is dependent upon the amount of money deposited with them, but that’s OK because I use HSBC for my primary emergency fund savings anyway. It’s a win-win.
ING is also offering a savings incentive. They call it their Automatic Saver Sweepstakes:
“Every month that you have a recurring deposit of at least $100 with an Automatic Savings Plan or Direct Deposit into your Orange Savings Account or Electric Orange, you’ll be automatically entered to win. This will give you a chance to win one of five $1,000 prizes every month, or our Grand Prize – $30,000 to be paid to your Orange Savings Account or Electric Orange. That’s right we are giving away a total of $60,000″
I LOVE ING, but since HSBC pays more interest, I keep the majority of my savings with them and use ING for smaller, goal oriented savings: new computer, sewer and water bills, etc…
For a free $25 when opening an ING Direct Orange Savings account, grab a referral here.
It seems like ING and HSBC aren’t the only banks trying to squeeze out some more deposits. J.D. at Get Rich Slowly has a post title, “Current Deals and Contests from Online Banks“, that runs through ING, HSBC, Washington Mutual and more!
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