HSBC whooping 6% saving…and the catch?

So the online saving rate war is back! HSBC is now offering 6% APY until April 30th 2007 but…there’s always a catch.

This deal only works on so-called “new” money which is basically any money you deposit between Jan 29-April 30. So in the end, I’d say you will only make a few extra bucks (in the sub-100k category) if you already have a 5% saving account somewhere. Especially since it’s only a 3 months deal from now. And then also due to the slow transaction time that will cause a loss of interest return on the days between money is moved and then there’s taxation. And if you have 100k+? You probably should be think about putting some of that money into funds/stocks portfolio anyways (or buy a house, do something w/ them plz) and won’t have 100k+ in saving :P

So I would say it’s not worth it, for the little gain and the hassle. Again, HSBC has very slow transaction from personal experience. It’s just another strategy to draw some new money/customers.

Originally posted 2007-01-28 03:50:31. Republished by Blog Post Promoter

One Response

  1. swallow says:

    If you read the small words, it said:

    *Annual Percentage Yield (APY) of 5.05% from 1/28/07 applies to non-qualifying funds during the promotion. Assuming New Money deposited and available on 1/29/07 (with no withdrawals) will yield 6.00% APY during the promotion and will yield 5.05% APY after 4/30/07, blended APY for 1 year from 1/29/07 would be 5.29%.

    so even if you get the $ in for the full promotion period, 5.29% is all you get for real…of course not worth it.

    So again…for all these promotion, remember to read the small words ;P

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