Today, I received an email regarding my savings account that put a frown on my face.

We are writing to inform you that based on the recent drop by the Federal Reserve, HSBC Direct has adjusted your Online Savings Account rate to 4.25% APY*. At 9x the national savings average**, you are still earning one of America’s highest savings rates.

The rate has been reduced from 4.50% APY to 4.25% APY. There has been a 0.80% change in the past 3 months. This is not a small percentage since the interest after being compounded makes a big difference.

The drop didn't affect only HSBC Direct of course, all the other high-yield savings accounts would also have this change. Everyone else should be receiving emails that their bank is doing the same.

Maybe it is time to allocate more into CDs?


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