HSBC Direct Review

HSBC Direct is an online direct banking operation and a program developed by HSBC Holdings plc, the world’s largest and most powerful banking group.  Features include a lack of monthly fees, even for those who use ATMs on a regular basis.

There is no minimum balance requirement, and investors can open an account by only putting in one dollar.  Also, investors are not required to open a checking account and are able to keep their current checking account. Those interested in long-term savings enjoy the 1.65 annual percentage yield which is a higher rate of return than the APY’s found with HSBC Direct’s main competitors.

Money can be deposited or withdrawn at HSBC ATMs located throughout the United States, deposited by mail, or transferred online from other existing checking accounts.  Online accounts are FDIC insured in order to protect the investor’s funds, and all online information is protected by passwords and encrypted with sophisticated security technology.  their claims to fame include Money Magazine’s distinction as the “Best of Breed” in 2007.

HSBC Direct features Online Certificate of Deposits, or CDs, which are high-yield CDs and provided investors with a high return rate while charging no monthly fees.  HSBC guarantees investors a specific yield upon maturity date if no early withdrawals have been made from the account.  HSBC Direct Online CDs can be rolled over to similar HSBC CDs once they have matured, or the investor may transfer the principal and interest of the CD to their Online Payment Account or Savings Account without paying a penalty.

HSBC Direct has, like many banks, been negatively affected by the current subprime lender economic crisis.  HSBC Holdings was forced to shut down the branch network of its HSBC Finance arm in the United States, after losing 62 billion dollars during the economic crisis.  Still, the company has been better often than other global banks, and its ability to maintain competitive APYs through HSBC is excellent proof of that.

—–see my #1 high yield savings choice