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HSBC Direct's New Online Payment Account

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HSBC
I guess this is HSBC Direct's answer to the high yield checking account. It's called the Online Payment Account. I just got word of it and haven't had time to really evaluate it. I can't find it described yet at HSBC Direct's homepage. I was given the following press room page with some of the details. Here is part of HSBC's press release:
This new Online Payment Account product, with a yield of 2.50% APY, offers instant fund transfers to and from the HSBC Direct Online Savings Account (OSA). This allows customers to leave funds in the high-yield OSA longer, and fluidly manage their money so that they can maximize the value of every dollar, every day. Customers can also earn interest on money in the Online Payment Account used for everyday expenses, and then promptly move anything they do not spend back into high-yield savings, getting the most earning power from both.

The HSBC Direct Online Payment Account gives customers access to their cash at any HSBC ATM, and at more than 395,000 non-HSBC ATMs nationwide. If a third party charges a customer to use their ATM in the U.S., HSBC will rebate up to three of these fees based on transaction date order during the calendar month. In addition to all bill pay capabilities and full access, the HSBC Direct Online Payment Account allows customers to link to an unlimited number of outside accounts and conduct an unlimited number of transactions. While the HSBC Direct Online Payment Account complements the HSBC Direct OSA, customers are not required to have an OSA in order to take advantage of the Online Payment Account. The HSBC Direct Online Payment Account is available to both new and existing customers.

So it looks like a checking account with a yield of 2.50% APY with some ATM refunds. As is common, you can do instant transfers between the checking account and your HSBC savings account. I don't see any info on paper checks. Perhaps that's the price for the higher interest. The minimum deposit is only $1 with no monthly fees so that's a plus. The 2.50% is a little bit of a letdown with the latest 4% and 5% high yield checking accounts that have come out (see post on the best checking accounts).
  Tags: checking account, HSBC

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Comments
9 comments.
Comment #1 by Pete Crane (anonymous) posted on
Pete Crane
Banking Guy-
Do you ever sleep? Man, you're all over the bank news. You've got to start charging for your material; you're making us paid writers look bad! Keep up the good work!
Regards,
Pete Crane
Publisher, Money Fund Intelligence
http://www.cranedata.us

2
Comment #2 by Brian (anonymous) posted on
Brian
I've been waiting to see what HSBC did, since I already have a savigns account with them. If this is all they've got, I will have to look elsewhere. Disappointing.

2
Comment #3 by Anonymous posted on
Anonymous
Western Federal Credit Union CD rates went up May 25 ex 5 year %.25

2
Comment #4 by Anonymous posted on
Anonymous
I'd be interested in learning more about the "instantaneous" transfers between the savings and payment accounts. Other banks, e.g., Citi, already allow you to make such instant transfers, but you're the one that has to initiate. The holy grail would be the ability to write a check and have THE BANK transfer the money btwn accounts upon presentment of the check. Otherwise, you're really not going to get much of a float at 2.50%.

P.S. As always, thanks, Banking Guy!!

2
Comment #5 by Anonymous posted on
Anonymous
HSBC bill pay is lame though. No e-bill or billpay presentment.

2
Comment #6 by Craig (anonymous) posted on
Craig
Per the email I just received from HSBC, the Online Payment Account will be available on Thursday, May 31.

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Comment #7 by Anonymous posted on
Anonymous
Delete Pete Crane's URL -- He's spamming.

2
Comment #8 by Anonymous posted on
Anonymous
Information concerning this account has not yet appeared on the HSBC Direct website, but it's available in the online application. I applied and was approved.

1
Comment #9 by Anonymous posted on
Anonymous
Is HSBC the corporate giant for Direct Merchant's, one of the most notorious for consumer abuse? If it is, ready the fine print and the mouse print very carefully.

1