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Rates and Account Review
Last Updated: June 2, 2008
The Online Savings Account is HSBC's high-yield, no-minimum online savings account. It was the hero of rate-chasers in 2005, remained competitive in 2006, and caused another sensation at the beginning of 2007 with its 6% annual percentage yield (apy) new money promotion. In the summer of 2008, HSBC started a new rate war with the 3.50% apy promotion. Many competing banks soon followed HSBC's lead with rate hikes of their own.
| | Balance | APY | Interest Rate | $1.00+ | 3.50% | 3.45% |
| www.hsbcdirect.com
(888) 404-4050
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Minimum Deposit
$1 | Monthly Fee
None | Minimum Balance
$1 | Compounding
Monthly |
While the name HSBC wasn't well known to American depositors when this account first came out, HSBC's size, history, and financial stability gave online saving a level of trust and security that people with fresh memories of the internet bust needed.
As for those adventuresome folks who already had an account with the other big bank, ING Direct, HSBC's higher rate gave them all the trust they needed to make the jump to this better yield.
Account Features
It doesn't take a lot of money to open the Online Savings Account and all balances on deposit earn the same high yield. The account has a low minimum opening deposit of $1 and it only takes a $1 to earn the high interest rate. There are also no monthly fees to worry about if your balance gets too low.
Like most online savings accounts, this account links to your current checking account. Whenever you want to transfer money from this account to your checking account, just log on to HSBC's online banking page and with a few clicks, the money is on its way electronically. It can take a few days for the cash to arrive in your checking account.
Unlike many savings accounts, HSBC sends you an ATM card to use. You can withdraw up to $500 per transaction and up to $1,000 a day from your HSBC direct Online Savings Account. You may be charged a fee if you use an ATM outside of HSBC's network. Most HSBC branches are in New York State, but you can find some in California, Delaware, Florida, Oregon, Pennsylvania, Washington, and the District of Columbia.
The account can initially be funded by transferring funds from another HSBC account, another bank, or by writing a check.
If you electronically fund your Online Savings Account from another bank, then HSBC will make two small test deposits into your source account to verify that you are the owner of the account.
A nice feature with the HSBC Direct Online Savings Account is that you can link as many other accounts as you want for online transfers. You can link checking or savings accounts from HSBC or any other financial institution.
Online Payment Account
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