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HSBC Direct 6.00% Internet Banking Savings Account

Johns Wu Posted in Money Market Rates by Johns Wu
March 15, 2007 01:07 AM - 32 Comments

HSBC Direct 6.00% Online Savings Account

Last year ING Direct took the banking world by storm with its �Winter Save Up Sale.� This time, HSBC is running a special offer of 6.00% APY for any money in one of their Online Savings Accounts. *This promotion is good for money that is deposited between January 29 and April 30, 2007. Money that was already in an account will continue to earn the standard rate of 5.05% APY.

Anybody who keeps their liquid money in an account other than one at HSBC could benefit by simply transferring funds. The only downfall is that any money that you have been keeping in your HSBC account will not apply to this promotion.

One of the Best Bank Rates?

If you are a bit unfamiliar with HSBC Direct, now might be a good time to get acquainted with what they have to offer. Even when they are not offering a promotion like this, they still have many benefits and features that may be of interest to you.

Here is a list of both the pros and cons of opening an account with HSBC.

Pros
1. HSBC standard rates are always competitive with other institutions.
2. There is no minimum balance requirement making it easy for anybody to get started.
3. Bank to bank transfers make it easy to work with your other banking establishments.
4. The option to request an ATM card.
5. In addition to the online savings account you can also open a checking account if you so desire.

Cons
1. Over the past few months HSBC rates have not been nearly as high as some of the competition. While HSBC is at 5.05% APY, some of the competition is offering 5.25% APY and higher.
2. There are not any bonuses for signing up. Again, this is something that the competition is offering in many cases.
3. Transfers to and from other institutions can take up to three days or more. This means that you will be missing out on a lot of interest each time you make a transaction.

One of the biggest concerns that people have with online banking is safety. When you deal with HSBC this is never a problem because you can deposit up to $2 million dollars. Of course, only $100 thousand of this is FDIC insured. If you open a join account you have the ability to have up to $200,000 in a single account that is FDIC insured.

The importance of having FDIC insurance coverage for an online account, or any that an institution such as HSBC offers is debatable. HSBC is part of one of the largest banking institutions in the world, HSBC Holdings. The US branch of this group is HSBC Bank USA, which is FDIC insured.

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Comments (32)
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  1. Anonymous said:
    on February 14th at 09:05 pm

    According to the site: “For example, New Money that is deposited and available on January 29, 2007 will earn an interest rate of 5.84% and yield 6.00% APY for 91 days until April 30, 2007 and assume it then earns an interest rate of 4.94% and yield 5.05% APY after that date.”

  2. Anonymous said:
    on February 14th at 09:07 pm

    They do not allow subsequent deposits to be made until 5 business days later — so there’s a week of interest dribbled away.

  3. Anonymous said:
    on February 14th at 09:22 pm

    i just transfer money into hsbc monday afternoon and it was in the account tuesday morning. Has anyone else experience such a quick transfer at HSBC? It usually takes me atleast 3 business days.

  4. Anonymous said:
    on February 15th at 11:09 pm

    success in da future. no regret

  5. Anonymous said:
    on February 19th at 11:34 pm

    just signed up for HSBC. thanks for pointing this out

  6. Anonymous said:
    on February 20th at 10:17 am

    are there any penalty for closign account?

  7. Anonymous said:
    on February 27th at 07:24 pm

    yes you have to keep it open for 6 month at least.

  8. flopper said:
    on March 2nd at 11:24 pm

    So, is this truly 6% the whole time? It sounds like it changes to 4.94 after 90 days…whats da deal?

  9. Bankaholic said:
    on March 3rd at 07:49 pm

    It is only a promotional rate, the HSBC Direct rate drops from 6.00 after April 30

  10. kimmy said:
    on March 3rd at 09:42 pm

    So, if we deposit before april 30 we would get a 6% interest rate the whole time our moneys in there?? is it compound daily?

  11. passin' through said:
    on March 3rd at 11:32 pm

    Looks to me like the “new money” gets the high rate only thorugh 4/30, then drops to the regular rate. Put money in on 4/29 and you’ll get one day at 6%. On the other hand, IndyMac has an internet six month CD that is paying 5.45% apy if you can tie money up that long.

  12. Elliot Yudenfriend said:
    on March 6th at 07:32 pm

    Why do you continue to show Millenium Bank ad for 8% interest when FBI says they are a scam?

  13. Bankaholic Admin said:
    on March 8th at 01:45 am

    Millenium Bank post is in the archive blogpost. Do you have a link about the FBI saying they are a scam? If so, please share it with me so I can post it up for others to read. Thanks

  14. rafi schutzer said:
    on March 8th at 03:09 am

    Check GE InterestPlus. It’s not FDIC insured but it’s a money market of GE Capital’s variable rate demand notes (VRDNs) triple A rated debt. Currently yields 5.43%

    -Rafi schutzer@mail.com

  15. andrew said:
    on March 15th at 02:17 am

    i just signed up with HSBC and it is only 6.00 apy, and 5.94….then after april 30 it goes to 4.94…..it is still a great option to put money into…fast transactions, and transefer from any bank or to anybank

  16. Treas. Guy said:
    on March 15th at 08:31 pm

    This offer is basically hype, since the higher rate is only offered until April 30. After that, the rate on your existing deposit drops.

  17. Zbean said:
    on March 19th at 03:09 am

    Anybody do any business with Zion’s Bank?

  18. Dhiren said:
    on March 21st at 05:19 am

    The 6.00% is only valid for customers who have previously never had a banking relationship with any members of the HSBC Group regardless of which county the relationship was held in, the world’s local bank

  19. Anonymous said:
    on March 26th at 06:15 am

    Don’t fall for this 6% A.P.Y. gimmick. It’s only good ’til April 30. There are plenty of better interest paying CD’S out there. World Savings Bank for starters.

  20. KC said:
    on March 27th at 02:43 am

    Current CD Rates at World Savings CD @ $10,000.00 minimum
    In Branch 5.32% Rate 5.46% APY for 9 month term
    Internet Special 5.36% / 5.51 APY for 10 month term.

  21. Bankaholic Admin said:
    on March 27th at 05:49 am

    Thanks for the info KC

  22. Byrd said:
    on April 8th at 12:36 pm

    Is anyone familiar with CPS or Sumner Harrington Ltd? They have incredible rates on Renewable Unsecured Subordinated Notes issued by Consumer Portfolio Services. Are they similar to CDs and are they FDIC insured?

  23. doom said:
    on April 25th at 09:29 pm

    hsfcu, $1000 min., 5 months, 5.25% apy
    $1000=21.55 at end of 5months
    $2000=43.10 at end of 5 months

  24. superkop9 said:
    on May 1st at 12:27 pm

    Just visited the website and this promotion is still running

  25. Rate Pro said:
    on July 23rd at 01:59 am

    If there’s anyone out there who is still looking for this rate at 6% APY, I don’t know why no one has mentioned about the online savings account at FNBO direct. I opened this account and I’m very satisfied. The service is great! This offer is good up to 9/28/2007. I hope this helps out everyone!

  26. AUTO said:
    on August 8th at 03:58 pm

    HAS ANYONE DEAL WITH FISN BANK, THEY PAY 6.5-8.0 WITH FDIC?
    I AM THINKING PUTTING MONEY IN THERE,BUT I DO NOT UNDERSTAND ABOUT CALLABLE AND NONCALLABLE CD.
    CAN SOME EXPLAIN. THANK YOU

  27. AUTO said:
    on August 8th at 03:59 pm

    STEP-UP BONUS RATE
    CALLABLE CDs
    Step-Up Bonus Rate Callable CDs are FDIC insured and pay interest at a fixed rate for each period and then step-up to a new, higher rate of interest for the next period. At the end of the non-callable term, the CDs may be called for the full amount of the deposit. When called, the bank returns the deposited amount with interest. If not called, the CD remains callable every 6 months thereafter. Only the bank can exercise a call, not the depositor. Early withdrawals are not permitted but these CDs can be sold or can be redeemed fully upon the death of an owner or co-owner. CDs sold prior to maturity are subject to market conditions and could result in a loss. These CDs are held in a brokerage account and there is no placement fee. Eligible for both IRA Accounts & 401K Rollover to IRA Accounts. Non
    Callable
    CD Term Possible CD Term Step-Up
    Periods Step-Up
    Interest Rate
    Per Period Theoretical APY Per Period Minimum Deposit Interest
    Payment
    0.5 Yr 15 Yrs 1-7
    8-11
    12-15 6.00%
    7.00%
    8.00% 6.09%
    7.12%
    8.16% $25,000 Semi-Annual

  28. Brenda Louard said:
    on October 4th at 12:56 am

    I too have interest in CPS or Sumner Harrington Ltd.They have incredible rates on Renewable Unsecured Subordinated Notes issued by Consumer Portfolio Services. Are they FDIC insured? Anybody knows anything or have been apart of this company? I noticed no one responded to the previous question on this company, is this a sign?

  29. anonymous said:
    on November 2nd at 08:59 pm

    Personally, have found HSBC agonizingly slow in bank-to-bank fund transfers leading to frustrating problems with my other bank. Generally, the transfers averaged 5-7 days, whereas with other institutions the process is taking a maximum of two days. What is interesting is that when I institute a transfer, my funds are missing in both the sending and receiving entities for that period of time. Attempts to seek clarification are met with convoluted explanations, etc. I am in the process of closing my account- which is taking over two weeks. I wonder how many other folks have experienced the same delays

  30. John J. Kircher said:
    on November 24th at 08:26 pm

    John J. Kircher
    919 Clinton Avenue South Apt 1539
    Rochester, New York 14620-1430
    Telephone: (585(256-3544
    Please keep in touch with me by postal mail service to my street address posted I’m not internet accessible or you can call me at again as stated above at (585) 256-3544

  31. Chance said:
    on December 19th at 06:36 am

    if folks are still wondering about the Sumner Harrington notes: NO, they are not like CDs, and NO they are not FDIC insured. basically you are making a fixed term loan to a corporation. you get a guaranteed return, so in that respect it is less risky than a stock market investment which of course can go up or down. OTOH, you cannot withdraw your money before the term. so unlike a stock investment where if you see the company is crashing you can sell immediately, if you see CPS crashing, you just pray that they don’t go belly up before the note term. so not for the faint of heart in sum.

  32. Jerry said:
    on August 5th at 03:21 am

    I am a brand-new investor. I just opened a HSBC direct online savings account. They say FDIC, but is my money safe ?

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