New money at HSBC earns 6.00% APY through April 30
Another email from HSBC Direct just arrived in my inbox. This one announces a new promotion — new deposits into HSBC Direct’s Online Savings accounts will earn an impressive 6.00%* APY through April 30, 2007. As far as I can tell, this is the best deal around.
It just so happens that I was playing poker with a guy who works for HSBC last weekend, and I smugly pointed out that there were a few banks offering better rates, to which he shrugged and said, “Yeah, we have some competition.” Not that one thing has anything to do with the other, just an interesting coincidence. But I wonder if he knew this promo was on the way and couldn’t tell me about it.
Here’s the email and some legal stuff regarding the new rate.
Don’t miss out on earning our New Money rate until April 30.
Dear _____,
Your HSBC Direct Online Savings Account gives New Money 6.00% APY* until April 30. So if you have money elsewhere, its time to move it and make the most of your savings.
During the New Money promotion, deposits from outside of HSBC earn a market-leading 6.00% APY*. Thats 11 times what traditional savings accounts offer.** And checking accounts obviously cant compare.
Theres no reason to leave your cash lying around anywhere else. Log on to move your money into your HSBC Direct account now, and earn 6.00% APY* for as many days as you can until April 30.
Your HSBC Direct Customer Service Team
* 6.00% is a promotional Annual Percentage Yield (APY) available on New Money only between January 29, 2007 and April 30, 2007. Minimum balance to open an account is $1.00.
** National savings average courtesy of Bankrate.com as of 1/1/07.
New Money Period is January 29, 2007 through April 30, 2007. Starting Balance means the available balance in your account as of the close of business on January 26, 2007. New Money means funds not previously held by any member of the HSBC Group deposited during the New Money Period less any withdrawals, and it excludes your Starting Balance as calculated below. New Money must be in available funds for the promotional rate to apply.
Methodology for Determining New Money
HSBC will use a last in first out calculation (”LIFO”) to determine the amount of New Money on deposit each day during the New Money Period. This means all withdrawals from your account will come from New Money first. Your Starting Balance is ineligible for the New Money offer. Only qualifying available balances above the Starting Balance are eligible for the New Money promotion. HSBC reserves the right to adjust your account to recover interest paid in error if it is determined that funds included in any New Money calculation were previously held by any member of the HSBC Group.
Interest Rate and Annual Percentage Yield (APY)
During this promotion all funds on deposit in your Online Savings Account that do not meet the requirements for New Money will earn an interest rate of 4.94% and a 5.05% APY. The interest rate and APY will again be variable after the New Money Period ends. For example, New Money that is deposited and available on January 29, 2007 (with no withdrawals from the day of deposit through April 30, 2007) will earn an interest rate of 5.84% and yield 6.00% APY for 91 days until April 30, 2007 and assume it then earns an interest rate of 4.94% and yield 5.05% APY after that date. The blended APY for the first year from January 29, 2007 for New Money in this example would be 5.29%. The blended APY for funds that are on deposit for fewer than 91 days will be lower as it may vary depending on the number of days the promotional rate is earned.
Reminder
The Bank reserves the right, with notice, to transfer to any other HSBC deposit account you have the amount of any transaction, excluding interest, that causes your Online Savings account(s) to exceed an aggregate balance of $2,000,000. The Bank in its sole discretion also reserves the right to return such amount to you in an official bank draft.
Issued by HSBC Bank USA, N.A. © 2007 HSBC Bank USA, N.A. All Rights Reserved.
