Just got a letter from HSBC - RE: The current economic conditions

[TwixVoy]

I just got a letter from HSBC regarding my "high interest" savings account. All I have to say is WTF? I thought the banks were all smiles and profitable again. Yet here is a letter informing me my interest rate is being slashed again. Funny how that works. If the banks truly believe we are seeing a recovery why are they still slashing savings rates?

BTW I moved 99.9% of the funds in this account out of HSBC sometime ago.


"Dear X,

The economic environment continues to be challenging. We are seeing lots of activity in the financial markets and from the Federal Reserve. In light of recent changes, we have updated your interest rate. Your Online Savings Account rate has been adjusted to 1.65% APY* as of March 30, 2009.

We want to reassure you that HSBC Direct continues to be one of the wisest places to save. A recent Bankrate.com article looked at savings options in the marketplace and reported:

Your Online Savings Account currently earns you more than any of these average rates.

You made a smart decision entrusting your money to HSBC Direct. We're part of HSBC Group, one of the most highly capitalized financial organizations in the world—which has not required capital support from the U.S. or U.K. governments.

Thanks again for saving with HSBC Direct.

Sincerely,

Kevin Martin
Executive Vice President
Head of HSBC Direct U.S.

P.S.: We are committed to offering our customers a range of savings options for their various needs. For a look at our range of high–rate Online CDs, click here. "

[DJ13]

1. This is what happens when they think they can get unlimited funding from Geithner

They no longer feel any need to keep their customers happy.

From savings interest rates to credit cards they no longer believe the customer's business is important.

[babylonsister]

2. We get letters, phone calls, etc., all the time. My attitude? Hang up unless

you know who's calling. They're rude, so I am, too.

[HowHasItComeToThis]

3. DO YOU KNOW WHAT HSBC STANDS FOR?

HONG KONG AND SHANGHAI BANKING CORPORATION



HONG KONG AND SHANGHAI

[TwixVoy]

4. So?