Picking up Nickels

Friday, April 20, 2007

HSBC Direct 6% APY promotion ends next week

Unfortunately, HSBC's 6% promotional rate ends on 4/30. Based on an email I received from HSBC, it looks like they will be falling back to their standard rate of 5.05% APY on 5/1. I've had my new cash parked at HSBC for about three months now, and it's time to think about where to park my cash after HSBC lowers its rate.

One option is the 5.3% APY GMAC Bank Money Market account, as reported by Bank Deals last week. Interesting timing, but I will be keeping my eye on the T-Bill auctions this week.

According to the new and improved T-Bill tax equivalent yield spreadsheet (courtesy of the FatWallet discussion on Treasury Bills), California residents could have had a tax-equivalent yield of at least 5.5% APY for T-Bills bought at auction last week. If that trend holds up next week, I think the U.S. Treasury will have the pleasure of borrowing my money.

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2 Comments:

  • My goodness, 6%! I will check back frequently to see if you find any more deals like this!

    By Blogger Chris, at 4/23/07, 10:47 PM  

  • Yep, HSBC was a nice place to stash cash for a few months. Unfortunately the current rate environment seems to be trending in the wrong direction. :(

    By Blogger Frugal Frugalson, at 4/24/07, 11:42 AM  

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