One of the top 10 largest banks in the world offers online accounts to its potential customers. HSBC is one of the top 10 largest banks in the world and the largest in Europe. Its name is derived from initials: Hongkong and Shanghai Banking Corporation.
HSBC was established in 1865 to finance trade between Europe and Asia.
The American division of the British bank offers customers to open online accounts.
There are two options: HSBC Direct Checking Account and HSBC Direct Savings Account.
HSBC bank has over 200 branches in the United States spread among ten states.
But, all this doesn't matter to you because of HSBC Direct Savings available online only.
You can open the high-interest savings account via the website only. There is no debit card for this account, so you cannot fund it through an ATM.
HSBC Direct has a mobile application with the super cool feature - mobile check deposit!
But, the deposit is limited to $3k per day and $5k per month.
If you have another account with HSBC - you cannot transfer money. The account can be funded with new money only!
New money means money that they were not held in the HSBC bank or its affiliates within the last 90 days.
The only way to move a lot of cash there is to make a transfer from checking, or savings account in another bank.
For example, you can transfer money from a savings account at Wells Fargo or Citibank.
As of today, HSBC Direct Savings has 2.05% APY. It is quite stable - HSBC hasn't changed the rates a few months. Federal Reserve cuts haven't influenced it much.
The APY of HSBC's direct savings is better than an average high yield savings account.
It is way above the national average, even across other high yield savings accounts. Most of the high yield savings accounts pay 1.7%.
Here is a brief breakdown:
Ally Bank pays 1.6% APY and usually cuts the rate first.
Alliant Credit Union has 1.65%.
High Yield Savings Account at American Express, Discover Bank, and Marcus by Goldman Sachs pay 1.7%.
CITBank pays 1.85%.
HSBC Direct Savings pays 2.05% APY. That is incredible!
There are no hidden fees, like in other banks. It is free of monthly maintenance fees and any additional fees.
As all savings accounts in the US, HSBC Direct Savings is FDIC insured up to $250k.
It also has the Regulation D transaction limit of 6 withdrawals per month.
There is HSBC Direct Checking - online only. To access it, you can use their automated phone system, mobile application, or website.
There are no maintenance fees; you can pay bills and make online transfers.
There is a very little APY on the checking account, 0.01%.
For the HSBC Direct Checking account, you will receive HSBC Debit MasterCard. Keep in mind that you may pay fees even when you use HSBC ATMs in other countries.
So, think twice before inserting your debit card to ATM even if there is an HSBC logo there.
In 2010 HSBC got one of the lowest ratings for customer care, but does it matter to you?
You will never experience in-person customer care.
HSBC Direct offers certificates of deposit or CDs. High Yield Certificates Of Deposit.
CD means you put money for a fixed term with a fixed interest rate. For example, a six month CD with 2% APY. You have to deposit $1000 and not touch it for six months. Then, you will receive $1010. There are two other options: 1 year and two years CDs with 1.7% APY.
After the term ended, it can be renewed automatically or transferred to another account.
The minimum amount for CDs is $1000, and the maximum limit for the CDs is $350k.
Early withdrawal penalties are for one year CD is the interest of one month.
It means that if you withdraw money within the first month - your earnings will be negative.
These are three topics we discussed today:
HSBC Direct Savings,
HSBC Direct Checking and
HSBC Certificates of Deposit.
Do you want to open HSBC direct savings account?
Write a comment!
Press the like button and subscribe to my channel.
Thank you!
0 Comments