Just went to HSBC site, and see their promo rate through 4/30/06 is 4.80%. I just moved 25K to ING to take advantage of their 4.75% promo rate (valid through 4/15).

Anyone know how long it would take to move these funds:
1) from ING back to my checking
2) checking to HSBC

Last time I checked, I could not link HSBC to ING. Is this still the case?

Lastly, do you experts think it is worth the trouble for .05 percent????

MOD: Feel free to delete if you feel this msg is not relevant to this thread. Thanks!

Do not need to be an expert to figure out that going thru the trouble of transfer for an extra 3 cents a day of interest while you will lose over $3 a day interest while money is in limbo would be a losing move

Thanks, but their's a bit more to it than the points you made:
1) How long would the funds be in limbo
2) Extra 15 days interest @HSBC (HSBC promo runs through 4/30 @ 4.8% vs ING promo at 4.75% which ends 4/15, and then reverts to 3.8% thereafter.)

Regardless, I am capable of doing the math. I mainly wanted to point out the competing offers and verify the fund transfer process btwn ING/HSBC had not changed....

Any thoughts on why ING, HSBC & Co. are starting these "bonus" programs as opposed to just calling it a rate increase? I can understand in ING's case (not all deposits qualify for the same rate) but HSBC could have just called it a rate increase. (Who cares if it is temporary - it is supposed to be variable anyway by its nature.) I noticed bankrate is listing HSBC's "bonus" (rightfully so) as the highest available "regular" rate but does not list ING's (arguably also rightfully so) (source).

Back to the question, why "bonus"? Does that actually attract more customers than a simple rate increase? Are these guys out to drive each other out of the market with the high temporary rates? (Their global mother corporations can probably afford this game, notice the smaller Emigrant is not playing this game, yet.) It would be interesting to see if Emigrant feels compelled to also enter the bonus game now. I hope they read this. You hear me, EmigrantDirect? If you wanna keep my 20 grand? You hear me? Pleaaase.

A conspiracy theory ... maybe Emigrant sweet talked HSBC into calling it a bonus... so Emigrant can keep advertising "America's highest rate."

I think neither ING nor HSBC has plans to extend the "bonus" rate. If they temporarily increased their regular rate, they would face a very negative reaction to it dropping. Bonus rate ending on a disclosed date will be taken much better.

Cheap said:
I see the difference and am tempted to add HSBC's higher rate to the list.
I vote for throwing it on your list. They have been offering a decent rate anyway and feel they have earned the top spot with that 4.80%. I had been thinking of opening an account with them and the 4.80% made the decision easy. Most banks state that rates are subject to change and at least we know with HSBC we have 3 months. Or we could compromise and throw it on the CD thread as best 3 month CD by far

EugeneV said:I think neither ING nor HSBC has plans to extend the "bonus" rate. If they temporarily increased their regular rate, they would face a very negative reaction to it dropping. Bonus rate ending on a disclosed date will be taken much better.

I agree with you that this may be their tactic. They are probably aware that the steady increase in the fed funds rate is coming to an end some time around their promotional period, and that short term rates will remain steady or go downhill from there. Maybe that's the best way for them to ease their customers into that transition. Plus, the ever increasing online HYS rates as opposed to B&M rates can't be maintained forever, perhaps it's starting to eat into their profits with all the HYS competition.

Yet, negative reaction or not, come April people will plan ahead to what comes after the promo's and keep rate chasing. If they had said 4.8% is our new rate, and said nothing about an end, and dropped it surprisingly on April 30, account holders might be pissed but it wouldn't give them the edge on planning what to do after April 30.

If Fed stops raising, there rate eases back. If Fed keeps raising, they just bump up the base rate to the promo offer and keep the money on deposit, they are waiting to see what the Fed will do at the March meeting a likely raise by 25bps.

mariojm said:Any thoughts on why ING, HSBC & Co. are starting these "bonus" programs as opposed to just calling it a rate increase? I can understand in ING's case (not all deposits qualify for the same rate) but HSBC could have just called it a rate increase. (Who cares if it is temporary - it is supposed to be variable anyway by its nature.) I noticed bankrate is listing HSBC's "bonus" (rightfully so) as the highest available "regular" rate but does not list ING's (arguably also rightfully so) (source).

Back to the question, why "bonus"? Does that actually attract more customers than a simple rate increase? Are these guys out to drive each other out of the market with the high temporary rates? (Their global mother corporations can probably afford this game, notice the smaller Emigrant is not playing this game, yet.) It would be interesting to see if Emigrant feels compelled to also enter the bonus game now. I hope they read this. You hear me, EmigrantDirect? If you wanna keep my 20 grand? You hear me? Pleaaase.

A conspiracy theory ... maybe Emigrant sweet talked HSBC into calling it a bonus... so Emigrant can keep advertising "America's highest rate."

davidaexp1 said:Not sure this belongs here, but thought some of the frugal members here might know how to start a new thread called......

I am so cheap that I once.....


Great idea, I'm interested too. I also never started a thread and I ain't interested in gettn yelled at for starting one that may already exist. Oh well, I'll get yelled at anyway for going off topic here. But here would be my contribution ...

"Stood in line and argued at a grocery store's customer service desk for a half hour to get 2 cents back that I was incorrectly charged for. The CSR finally threw 2 cents at me in anger. Cash! Hey, didn't make me unhappy, got to keep 0.1 cent more on my 5% Cash Back card!"

I tend to agree.

There is no way of knowing what HSBC or INGs rates will be when the promos expire.

The only thing for sure is that I will be in a HURRY to move my money out of both places if better rates are available elsewhere.

I wont let ING penalize me again for leaving some monies in there. The account will have 1 cent left in it as soon as the promo rate expires.

tansynelson said:5) To the extent possible, no teaser rates.

If HSBC is going to be ranked #1 with a teaser rate ING should be likewise ranked #3 with theirs.

I think it is clear that ING is a teaser rate. Most teaser rates are easy to spot:

"Our rate is x, until y, then it will be z."

With HSBC there is no "then it will be z".

HSBC belonged on the list and was at 4.25%. This is false now, and could (likely) be false at the end of April. If HSBC is a promo, where does it go? Is it penalized off the list even though at the end of April it will most likely be put back on? How sure are we that it will drop at all at the end of April compared with anything else on the list? Without a "z" I am inclined to view this as a guarantee.