I recently found out about HSBC's new online savings account, which is just like ING Direct's online banking system. ING right now is at 4.25% whereas HSBC is at 5.00%--although both are at promotional rates and go back down to 3.50% afterwards.
The funny thing about these differences in interest rates (0.75%) is that it's really not that much. Unless you have a boatload of cash sitting around, chasing interest rates isn't necessarily that worth it, in my opinion. I feel like it's those people who line up at the gas station just cause gas is under a dollar. Let's say gas is usually about $1.03 per litre, and today you see it's at $0.99 per litre. People go, "wow! It's under a dollar!" and go and fill up. Well, suppose that's four cents savings for a 30 litre tank. That's saving $1.20 by filling up there. I'm sure somebody will say, oh, $1.20 adds up and whatnot, but filling up at those times probably requires waiting three times as long to fill up because of the long lines. In the same way, unless you have $10 000 to park in a savings account, the interest rate difference from 4.25% to 5.00% isn't really much.
However, I'm a student, and I have student loan debt looming over my head everyday. I also have all of my assets pretty liquid because I am saving for my exchange term next year. So, 0.75% interest is a big deal to me.
I've had an account with ING Direct for awhile now. (Leave me a message and I'll refer you so we can each get $13!) I love banking with them because they make everything so simple. Whenever I call them, I don't have to wait long to get a person to speak to instead of a machine. And I always get high interest rates with them.
I just signed up for the HSBC savings account last week and I'm just waiting while the account starts up. I'm not sure what's supposed to happen and I'm confused already. Basically I don't know when my account is set up until I notice they've cashed my initial deposit. Then I'm supposed to call them, I think... I'm going to write more about it once I figure out what's going on.
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3 comments:
I have an HSBC account, and I enjoy the extra % of savings. However, I also have an ING because the $25 sign-up bonus was too compelling. I also have a CitiBank account for the $50 sign-up bonus. I think CitiBank is running a $100 sign-up bonus, so you might want to look into that.
I've seen the HSBC savings account too- didn't realize it was a term offer. I have an ING account though and have been pretty happy with it, but can see why you would want the extra $$. Yes it all adds up (or let's you buy a cup of coffee once in awhile).
I added your link to my blogroll after learning about your blog via Give Me Back my Five Bucks. Another Canadian woman PF blogger! Yay!
I've been tempted by the HSBC account, but in the end decided to stick to my ING and my PC Financial. PC is a constant 4% as long as I keep the balance above $1000, so I'm happy with that.
p.s. yay you met Wooly Woman! I love our Canadian PF blogger world, such a cozy little family. :)
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