HSBC Direct Online Savings Review
Are you tired of abysmal interest rates on your savings accounts? Maybe you've even abandoned the thought of a savings account because it just doesn't seem worth it anymore.
You may want to consider the
Today, many people don't even have savings accounts any longer. They focus on investing, but forget about the liquidity necessary for emergencies. Having a separate savings account can help you have quick access to cash, should you find yourself in a bind.
You'll often find your highest interest rates online, such as is the case with the HSBC Direct Online Saving account. You get the benefit of around-the-clock banking combined with attractive APYs. Even though HSBC is a brick-and-mortar bank located throughout the U.S., they aren't everywhere. Consumers who want to take advantage of the benefits HSBC offers can do so with the Direct Savings program that is available nationwide.
If you're considering opening a personal checking or savings account, you must check out these bank promotions.
How It Works
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The
If you have a current HSBC account, such as an HSBC Choice or HSBC Advance Checking, opening an account is even easier. You can connect the accounts, making online transfers a breeze. Even if you don't have an HSBC checking account, you can connect your external bank account to the Direct Savings account for easy funding and withdrawals.
To get started, you simply apply online by providing your name, address, Social Security number, driver's license number, and your current bank's routing and account numbers. You must be at least 18 years old and have been a U.S. resident for the last 3 years.
Once you are approved, you fund your account with funds from your connected account. You are then free to make transfers or withdraw funds as you see necessary.
Compare Savings Account Promotion
- FDIC insurance covering up to $1,000,000 at program banks
- Access cash in 1-2 business days
- No minimum balance
- No fees on balance
- Unlimited withdrawals
CIT Bank Bonus Offer: $300 for New and Existing Customers
CIT Bank now offers up to $300 cash bonus for new and existing CIT Savings Builder customers. This limited time promotion expires May 30, 2020. Conditions apply.
Discover Online Savings - $200 Cash Bonus
To get your $150 or $200 Bonus offer: What to do: Apply for your first Discover Online Savings Account by 5/11/20, 11:59 PM ET, online or by phone. Enter Offer Code CY420 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted by 5/25/20, 11:59 PM ET. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded or affinity accounts provided by Discover. Account must be open when bonus is credited. Bonus will be credited to the account by 6/8/20. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice. See advertiser website for full details.
Betterment Everyday - Earn up to 0.30% APY
Why We Like HSBC Direct Online Savings
- HSBC doesn't charge a monthly service fee. Many banks, even online banks, charge a monthly service fee if you don't meet their minimum monthly balance requirements. This helps you earn more interest on your money.
- HSBC offers a higher APY than most local banks offer. If you look around at your local banks, you'll probably find measly interest rates for your savings. HSBC offers higher interest rates on the Direct Online account because there's minimal overhead with this account since everything is handled online.
- You can connect your HSBC checking account to your online savings. This makes it easy to access your cash from your savings account as well as make faster deposits. You can use your checking account's ATM card to deposit the funds in your checking account. Once available, you can then transfer the funds to your savings account.
- You only need $1 to open an account. Obviously, $1 isn't going to earn you much interest, but the minimal deposit gives you incentive to open the account and start saving. Once you have the account open, you can set up strategies to put money into your savings account. Opening the account is often the first step.
- You can deposit checks using the HSBC Mobile Banking app. All you have to do is take a picture of a check via the HSBC mobile app and you can deposit your checks easily. This eliminates the multiple steps necessary when you have to transfer the funds from another checking account.
- You can easily transfer funds from your HSBC Online Savings account to any non-HSBC account. If you need access to your funds, simply electronically transfer the funds to your connected checking account and withdraw the funds from that account as you see fit.
- You can view up to 7 years of your online statements with eStatements. As long as your account remains open, you have access to up to 7 years of statements online.
- You can apply online and open your account almost instantly if approved. The online application only takes a few minutes to complete. Once approved, you can fund the account instantly by connecting another checking account, HSBC or otherwise.
- You can access your account 24/7 online and have access to Live Chat if you need help. You can access your accounts online 24/7. You don't have to worry about bank holidays or closures. The standard bank holidays do apply to transfers, deposits, and withdrawals, though.
- HSBC offers a $0 Liability Online Guarantee. This means that HSBC offers a guarantee that you won't be responsible for unauthorized transactions conducted in your Direct Online Savings account.
Reasons You May Want to Look Elsewhere
- You won't get an ATM or debit card with your Direct Online Savings account. One of the significant downsides of the HSBC Direct Savings Account is that it doesn't come with its own ATM or debit card. This means all of your banking must be done online or through another HSBC account. So if it's the only account you have with HSBC, you'll only be able to access your funds online or through the mobile app.
- They charge quite a few miscellaneous fees. While HSBC's Direct Savings account seems "free," they do charge for things like closing your account ($25), Balance Verification Letter ($20), and special statement requests ($6).
- You have to use online banking or automated telephone banking. You don't have the option of visiting an HSBC branch in person to conduct your banking.
How It Compares
HSBC vs Marcus:
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 |  | |
HSBC Bank | Marcus by Goldman Sachs | |
|---|---|---|
HSBC Advance Checking - Up to $270 Cash Bonus - | Marcus Online Savings - Earn 1.70% APY - | |
Benefits and Features | ||
| Savings | HSBC Direct Savings: 1.70% APY. $1 minimum opening deposit and no monthly service fee. Deposit checks easily by taking a picture with your phone using HSBC Mobile Banking. | 1.70% APY. $0 to open; $1 to earn stated APY. No fees to open or maintain account. No minimum daily balance requirement. |
| CD | 0.75% to 0.80% APY. Terms of 6 months, 1 year, or 2 years. 12-month CD APY of 0.80%. Minimum deposit of $1,000 to open. | 0.60% to 1.90% APY. Terms of 6 months to 6 years. 12-month CD APY of 1.85%. $500 minimum to open. No monthly service fee. |
| Customer Service | Monday - Friday: 8:00 am - 10:00 pm (ET) Saturday - Sunday: 9:00 am - 7:00 pm ET | |
| Mobile App | ||
| ATMs | Any HSBC ATMs in the U.S.; HSBC ATMs abroad may incur additional fees and foreign conversion rates. | |
| Locations | HSBC - 240+ branches, mostly on the West and East coasts HSBC Direct - online only | |
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Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. HSBC: Information including rates, fees, terms, and benefits was obtained on January 16, 2020 from published websites and is believed to be accurate, but not guaranteed. Marcus: Information including rates, fees, terms, and benefits was obtained on April 9, 2020 from published websites and is believed to be accurate, but not guaranteed. | ||
HSBC vs Ally:
|  | |
| | |
HSBC Bank | Ally Bank | |
|---|---|---|
HSBC Advance Checking - Up to $270 Cash Bonus - | Online Savings Account - 1.50% APY - | |
Benefits and Features | ||
| Savings | HSBC Direct Savings: 1.70% APY. $1 minimum opening deposit and no monthly service fee. Deposit checks easily by taking a picture with your phone using HSBC Mobile Banking. | |
| CD | 0.75% to 0.80% APY. Terms of 6 months, 1 year, or 2 years. 12-month CD APY of 0.80%. Minimum deposit of $1,000 to open. | 0.50% to 1.75% APY. Terms of 3 months to 5 years. 12-month CD APY of 1.50% |
| Checking | Basic Banking: no minimum requirements; $1 monthly service fee Choice Checking: $15 monthly service fee waived if you set up direct deposit OR maintain a minimum monthly balance of $1,500 Advance Checking: $25 monthly service fee waived if you maintain a minimum monthly balance of $5,000 in combined HSBC deposit and investment accounts. Premier Checking: $50 monthly service fee waived if you maintain a minimum monthly balance of $75,000 in combined HSBC deposit and investment accounts. | 0.10% APY under $15,000; 0.50% APY $15,000 or more |
| Customer Service | ||
| ATMs | Any HSBC ATMs in the U.S.; HSBC ATMs abroad may incur additional fees and foreign conversion rates. | Over 43,000 no-fee Allpoint ATMs |
| Locations | HSBC - 240+ branches, mostly on the West and East coasts HSBC Direct - online only | |
| | |
HSBC: Information including rates, fees, terms, and benefits was obtained on January 16, 2020 from published websites and is believed to be accurate, but not guaranteed. Ally Bank: Pricing information from published website as of 04/10/2020. | ||
HSBC vs Synchrony: Synchrony also offers a high yield online savings account with minimal fees. Synchrony does offer an ATM card connected to the savings account, which can make deposits and withdrawals easier with this online savings account.
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| | |
HSBC Bank | Synchrony Bank | |
|---|---|---|
HSBC Advance Checking - Up to $270 Cash Bonus - | High Yield Savings - 1.50% APY - | |
Benefits and Features | ||
| Savings | HSBC Direct Savings: 1.70% APY. $1 minimum opening deposit and no monthly service fee. Deposit checks easily by taking a picture with your phone using HSBC Mobile Banking. | 1.50% APY. No monthly service fee and no minimum deposit. An ATM card is provided for easy withdrawal. Synchrony will refund ATM fees for other banks up to $5 per statement cycle |
| CD | 0.75% to 0.80% APY. Terms of 6 months, 1 year, or 2 years. 12-month CD APY of 0.80%. Minimum deposit of $1,000 to open. | 0.25% to 1.65% APY. Terms of 3 months to 5 years. Minimum deposit of $2,000 to open. |
| Customer Service | Mon-Fri 8:00 am - 8:00 pm (ET); Sat-Sun 8:00 am - 5:00 pm (ET) | |
| ATMs | Any HSBC ATMs in the U.S.; HSBC ATMs abroad may incur additional fees and foreign conversion rates. | Any ATMs with Plus or Accel logos |
| Locations | HSBC - 240+ branches, mostly on the West and East coasts HSBC Direct - online only | |
| | |
HSBC: Information including rates, fees, terms, and benefits was obtained on January 16, 2020 from published websites and is believed to be accurate, but not guaranteed. Synchrony Bank: Pricing information from published website as of 04/09/2020. | ||
Common Questions
- Is HSBC Direct Online Savings safe?
HSBC is insured by the FDIC. They also offer two-factor authentication to help keep your account safe from hackers. - Are online banks worth it?
If your goal is to earn interest on your savings account, you may have better luck with online savings accounts, like those at HSBC. The banks share the savings they earn by not offering access to their branch services by offering you higher interest banks. - Is HSBC an online-only bank?
HSBC does have locations throughout the United States, but they are not nationwide. They have 230 branches located primarily on the East and West Coasts.
Bottom Line
If you are tired of measly interest rates on your savings accounts, HSBC Direct Online Savings might be a good choice. Make sure you read the fine print and figure out how you would best access your money.
Keep in mind that they don't offer an ATM card, so if you are used to accessing your funds via ATM, you may want to look elsewhere.
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