Today, HSBC Direct announced that it had dropped its rates on its online savings account from 5.05% to 4.50%. It’s a big move, considering that ING Direct had recently reduced its rates from just 4.50% to 4.30% when the Federal Reserve announced its cuts last week.
With such a big reduction, I’m not sure if HSBC can stay competitive with ING, which offers better customer service and faster bank-to-bank transfer times.
I think I’ll start investing in Prosper.