The FDIC has recently calculated that the latest average annual percentage yield (APY) on a savings account is a minuscule 0.05%… totally depressing if you ask me!
If you already have a savings account set up, chances are that your money is just sitting in the account earning next to nothing…so why not make the switch to a high-yield savings account to get a better return on your investment, while still having unlimited access to your money when you need it.
Today, we’ll feature a high-yield savings account offered by HSBC – called HSBC Direct Savings.
HSBC is currently offering an APY of 0.05%. The bank is also very technologically-savvy with their user-friendly mobile app and 24/7 access to your money.
Read more below to find out if this account may be good match for you and for your money.
What Is A HSBC Direct Savings Account?
HSBC’s Direct Savings account is an online-only account that is available nationwide. Because this is an online-only account, they don’t have the operating fees associated with brick-and-mortar branches, and they pass the savings right on to their customers by offering a 0.05% APY on any amount in the account over $1.
Furthermore, Direct Savings doesn’t have any associated monthly or annual maintenance fees and the minimum deposit to open an account is just $1. Interest on a Direct Savings Account is also compounded daily.
On any Direct Savings account, you can also utilize features such as goal-setting and money visualization to make sure your savings are on track. Money transfers are available between HSBC Direct Savings and offline HSBC accounts which are also all visible on their website and mobile app.
Signing up for an account can easily be done online and if you are approved, you can start saving and receiving the advertised APY instantly.
How Can I Deposit and Withdraw Money from A HSBC Direct Savings Account?
Here are the ways HSBC says you can deposit or obtain money from your online savings account:
- Direct deposits
- Online transfers
- Mobile check deposit
- Send a check via mail
- Wire transfers
- Visit a HSBC branch
- Online transfers
- Wire transfers
- Request a check be mailed to you
- Visit a HSBC branch
What are the Account Fees For A HSBC Direct Savings Account?
Here is the current fee schedule for HSBC Direct Savings Accounts
|Monthly/ Annual Fee||$0|
|Minimum Opening Deposit||$1|
|Fee for Transactions over limit||$0|
|Maximum Daily Online Limit||$350,000|
|Maximum Ledger Balance||$2,000,000|
|Balance Verification Letter||$20 for first copy. $5 for every additional copy|
|Incoming Wire Transfer||$15/transfer|
|Legal Paper||$100 for each court order|
What Are The Benefits of A HSBC Direct Savings Account?
- Higher than average APY
- Minimum opening deposit is just $1
- User-friendly mobile app with simple mobile deposit feature
- Customer service is available via phone and Live Chat any time you need help
- Application process is online and easy to complete in a matter of minutes
What Are The Disadvantages of A HSBC Direct Savings Account?
- Limited to 6 withdrawals or outgoing transfers per billing cycle
- Online-only with no in-person help available. You have to use online banking or automated telephone banking
- No ATM or debit card
- Higher than average fees for account closure, paper statements and wire transferring services
- Maximum account balance limit ($2 million)
- While 0.05% is one of the higher APYs in the market today – there are still banks that offer higher or may have better perks, depending on your individual situation.
As of June 2022, here are some rates from competitors that you may want to check out:
- Aspiration Bank – 3.00% APY
- TAB Bank – 1.26% APY
- Citi Accelerate – 1.01% APY
- First Foundation Bank Online Savings – 1.00% APY
- Barclays Bank – 0.90% APY
- CIBC Bank – 0.87% APY
- Goldman Sachs – Marcus Account – 0.85% APY
- Synchrony Bank – 0.85% APY
- TIAA Bank – 0.80% APY
- Ally Bank – 0.75% APY
- Citizens Access – 0.75% APY
- Capital One 360 Performance Savings – 0.70% APY
- Discover – 0.70% APY
- American Express Personal Savings – 0.65% APY
- CIT Bank Savings Builder – 0.55% APY
- MySavingsDirect – 0.50% APY
- Vio Bank – 0.50% APY
- HSBC Direct – 0.05% APY
Is A HSBC Direct Savings Account FDIC-Insured?
Yes. HSBC Bank USA is a FDIC member, which means that funds deposited into their Direct Savings Accounts are insured up to the maximum allowed by law.
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions. The FDIC insures deposits according to ownership category (such as individual, joint or accounts with beneficiaries). The current maximum amount is $250,000 per depositor, per insured bank, for each account ownership category.
How Do You Open A HSBC Direct Savings Account ?
Opening a Direct Savings account with HSBC is a fairly straightforward process. You just need to:
- Be a US Citizen
- At least 18 years old
- Have a US residential address
- Have a Social Security number
If you meet the above criteria proceed with the following:
1. Go to HSBC Direct’s site and click Get Started.
2. Enter your full name, date of birth, Social Security number and email address. Click Continue.
3. Enter your address, phone number and driver’s license number. Click Continue.
4. Tell HSBC a little more about how you intend to use your savings account and how you plan to fund the account. Click Continue.
5. Review the information you’ve submitted, and click Continue.
After your application is complete, you’ll receive an email from HSBC with an application status update. If necessary, you may be asked to submit supporting documentation to verify the information included in your application.
Once verified, you’ll be sent a Personal Internet Banking username by email within two business days. Use the provided username to log into your account and make your first deposit.
How To Access Your HSBC Direct Savings Account:
Online: Access your account by logging in with your username and password on: https://www.hsbcdirect.com/savings/
Mobile Device: Bank on your phone/tablet through their mobile app.
Contact HSBC About your Account:
- Call 800-975-4722 to reach an HSBC customer service rep seven days a week from 7 a.m. to 12 a.m. ET.
- Tweet @HSBC_US seven days a week for an online response to your questions.
- In person:
- Visit an HSBC branch to speak with a customer service representative in person during branch business hours.
- HSBC Bank, PO Box 2013, Buffalo, NY 14240.
- Online Live Chat:
- HSBC’s live chat option on its website is available 24/7.
HSBC Direct Savings is a great, low-hassle account offering an APY of (0.05%).
If your goal is to earn interest on your savings account, an online account such as HSBC Direct Savings may be right for you if you can overlook not having access to an ATM card or in-person support as you would with a complete brick-and-mortar banking experience. Paper statements and wire transfers can also be costly… but if all you’re doing is saving your money, and can stick to only using your mobile device to bank – these may not be issues for you.
Banking Health Score
There are many banks and financial institutions to choose from and it is important to be able to distinguish the good from the bad. Our team reviews each bank on a monthly basis to ensure that the information we share is as up to date as possible. Not only is the financial strength of a company important, but also how well their customer service is rated by actual customers like you.
We also believe that in order to determine how well a bank is functioning, that several sources should be utilized to compare one bank to another.
That said, here is a list of scores from trusted sources that you should consider before making your banking decisions.
HSBC – Bank Health Scores
Bank Professor’s Bank Score = ⭐⭐⭐⭐ 4 stars out of 5 stars
- Bankrate’s Safe and Sound Rating: 3.9 out of 5 stars
- BauerFinancial Star Rating: 5 out of 5 stars
- BankTracker Troubled Asset Ratio: 3.32
- FDIC: Actively insured
More about the rating system:
- BankProfessor rates banks monthly on a one-to-five scale based on revenue, net income, total assets, total equity, capital ratio, customer reviews, rating agency scores, profitability, and troubled asset ratio.
- Bankrate.com ranks banks and credit unions quarterly on a one- to five-star system, with one being the lowest rating and five the highest. The rating is given based on regulatory filings about the financial institution’s capital adequacy, asset quality, profitability and level of cash available. It compares those levels with peer and industry norms.
- BauerFinancial offers a similar star rating system as Bankrate (a one- to five-star system, with one being the lowest rating and five the highest).
- BankTracker was created by the Investigative Reporting Workshop of American University and MSNBC.com. They determine a bank’s troubled asset ratio. According to the site, the ratio is “a strong indicator of severe stress inside a bank because it shows the bank’s ability to withstand loan losses”. In other words, the higher the ratio, the more “trouble” they are in.