HSBC Bank Canada has boosted the interest rate for new deposits to its direct savings account to 4.75%.

The introductory interest rate for online savings accounts is one of the highest in the country.

“The investment market has turned extremely volatile over the past few months and we have found that a significant percentage of Canadians have been searching for a safe haven in which to park their short to medium term savings,” said Tracy Redies, executive vice- president, personal financial services at the bank. “For many investors that safe haven has increasingly become a high interest rate savings account.”

The high interest rate account is available to both new HSBC Direct customers as well as to existing customers who are adding additional funds to their online account. The 4.75% introductory interest rate will apply to new deposits until May 2, 2008. Interest is calculated daily and paid monthly on balances up to $1 million.

New customers can link their HSBC account to accounts at other Canadian banks, and make surcharge-free deposits and withdrawals at ATMs across the country.