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.
- Earn 2.30% APY on all balance tiers
- No monthly maintenance fee
- Minimum balance to earn APY is $1
- Member FDIC
HSBC Direct Savings - 2.30% APY
You may want to consider the HSBC Direct Online Savings account. While it won't get you rich quick, it does offer a healthy APY to help encourage you to keep funding that emergency fund.
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 promotions.
How It Works
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The HSBC Direct Online Savings account is strictly a savings account. Don't expect any bells and whistles with the account. In fact, don't even expect a debit card. You do everything online from start to finish.
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
- No minimum opening deposit
- No monthly fee
- No minimum balance required to waive monthly fee
- Earn 2.45% APY on balances of $10,000 and above
- Member FDIC
Online Savings Account - Earn 2.10% APY
UFB High Yield Savings - Earn up to 2.45% 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
Discover Online: Discover offers a comparable online savings program with a high APY, no minimum balance requirement, and no monthly fee.
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HSBC Bank | Discover Bank | |
|---|---|---|
HSBC Direct Savings - 2.30% APY - | Online Savings Account - Earn 2.10% APY - | |
Benefits and Features | ||
| Savings | HSBC Direct Savings: 2.30% APY. $1 minimum opening deposit and no monthly service fee. Deposit checks easily by taking a picture with your phone using HSBC Mobile Banking. | 2.10% APY. No monthly service fee and no minimum deposit. |
| CD | 0.75% to 1.30% APY. Terms of 6 months, 1 year, or 2 years. 12-month CD APY of 0.95%. Minimum deposit of $1,000 to open. | 0.35% to 3.05% APY. Terms of 3 months to 10 years. 12-month CD APY of 2.50%. 5-year CD APY of 2.85%. Minimum deposit of $2,500 to open. |
| Checking | Basic Banking: no minimum requirements; $3 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 $10,000 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. | Earn 1% cashback on up to $3,000 in debit card purchases each month. No monthly service fee and no minimum deposit. |
| Customer Service | ||
| 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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HSBC Bank: Information including rates, fees, terms, and benefits was obtained on June 23, 2019 from published websites and is believed to be accurate, but not guaranteed. Discover Bank: Pricing information from published website as of 6/23/2019 | ||
Synchrony Bank: 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 Direct Savings - 2.30% APY - | High Yield Savings - | |
Benefits and Features | ||
| Savings | HSBC Direct Savings: 2.30% APY. $1 minimum opening deposit and no monthly service fee. Deposit checks easily by taking a picture with your phone using HSBC Mobile Banking. | 2.25% 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 1.30% APY. Terms of 6 months, 1 year, or 2 years. 12-month CD APY of 0.95%. Minimum deposit of $1,000 to open. | 0.75% to 2.90% APY. Terms of 3 months to 5 years. Minimum deposit of $2,000 to open. |
| Customer Service | Mon-Fri 7am - 12am (ET); Sat-Sun 8am - 5pm (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 Bank: Information including rates, fees, terms, and benefits was obtained on June 23, 2019 from published websites and is believed to be accurate, but not guaranteed. Synchrony Bank: Pricing information from published website as of 6/23/2019. | ||
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
- Earn 2.30% APY on all balance tiers
- No monthly maintenance fee
- Minimum balance to earn APY is $1
- Member FDIC
HSBC Direct Savings - 2.30% APY
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.
Disclaimer: Opinions expressed here are author's alone. Please support CreditDonkey on our mission to help you make savvy decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.
Disclaimer: This content was first published on August 14, 2018. Information including rates, fees, terms and benefits may vary, be out of date, or not applicable to you. Information is provided without warranty. Please check the bank's website for updated information.
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