HSBC Direct seems like a better choice at 4.8%. I did a lot of research and read personal reviews comparing ING, Emigrant, and HSBC. I settled on HSBC for a variety of reasons, one of which was the higher rate.

HSBC's 4.80% APY is temporary until 4/30. For the record, I never believe a big bank can be a leader in the game ... they need to worry about not pissing off too many existing customers.

eDave, does HSBCDirect charge for bank-to-bank transfers? By reading the fineprints, I thought they would charge $3 fee for any transfers. Let ma know.

I believe it says in the fine print that for the Online Savings account, there is no transfer fee.

Tks. I just called HSBC to check that, there is no fee to fund the account, however any time you want to take money out of the account, there will be a $3 fee per transaction. In this case, it would only make case to bank with HSBC if you want to centralize all your finances with them (which you cannot do with INGDirect, which does not offer ATM, check, and other banking products).

I'm glad that Emigrant finally raised their rates. I think hsbc and the other banks really did a good job teasing current Emigrant customers when the rates were 4.25%.

A friend of mine swears by Umbrella bank, saying they are the most aggressive rate wise, however, they don't have convenient EFT access.

In my blog (http://makingourway.blogspot.com/) on march 9th and march 17th I posted some comparisons between emigrant, gmac (which has a higher rate and seems tempting) and umbrella bank. I've also included a copy of their dialogue with me regarding funding. They are paying about 4.61% as well.

I like the idea of a long term CD that you can break. Most banks I've talked to sacrifice a quarter rather than a half year of interest. I'd hold off locking for a while. I think more interest rate hikes will come.

Regards,
Making Our Way
http://makingourway.blogspot.com/

There is NO transfer fee if you have the online HSBC savings account. From their terms and conditions:

"The following Service Charges apply to all Consumer Checking and Savings Accounts when completing a transfer from HSBC to another financial institution. These charges do not apply to a customer that owns an OnlineSavings Account, HSBC Premier, or Domestic Private Banking account.
Fee Transaction -- $3.00 per transaction."

I have had the account for three months with many transfers, and can confirm that there is indeed no transfer fee.

I have had a emigrant direct account for over a year now and have no complaints. I also have a GMAC account and have been impressed with their service. Both have high interest rates. GMAC has a $500.00 minimum balance to avoid a monthly fee, where Emigrant Direct has no minimum balance. GMAC offers a slightly better interest rate. Either way, I think you will be very pleased.

I like INGDirect. I know the rate is slightly lower but it's interface and ease of use makes up for it IMO. It's good to see emmigrantraise their rate though because we'll likely see an increase from ING shortly.

Looks like Citibank came out with e-savings account with 4.5% as well.

Spoofee actually covers this topic pretty well. Emmigrant is not the best.

Article Link. Best is Umbrella with 5.25%
http://www.spoofee.com/forums/showthread.php?t=26285

I was looking for a bank that would offer a debit card with access directly to the e-savings account. Haven't found it yet but I could swear I saw it somewhere. Anyone know?