HSBC Brings Back HSBC Direct Savings with Competitive Rates


Deal Summary: HSBC Direct Savings Account, 1.80% APY on all balances up to $2 million

Availability: Nationwide (internet bank)

If you’re a long-time reader, you will likely remember HSBC Direct. I first started to write about HSBC Direct and its Online Savings Account in 2005. Before the 2008 financial crisis, HSBC kept the Online Savings Account rates very competitive. Most noteworthy was in 2007 when HSBC Direct offered a promotional 6% APY. The Online Savings Account became less competitive after 2008. In 2010, HSBC Direct became HSBC Advance. Like other online savings accounts, the rate fell after 2008. However, the HSBC Advance Savings Account Rate fell much more than others. The rate was at 0.80% in early 2012. The rate fell in 2012 and 2013 until it reached 0.05% in late 2013. It remained at this low rate until 2016 when it reached a bottom of 0.01%. As a comparison, Ally Bank’s Online Savings Account rate never fell below 0.84%.

1.80*%-$2mHSBC DirectHSBC Direct Savngs
Rates as of August 19, 2018.

In the last month, HSBC has reintroduced HSBC Direct and its online savings account which it now calls HSBC Direct Savings. When I first learned of the account in late June, the account was earning 1.60% APY. In early July, the rate increased to 1.70% APY, and yesterday, the rate went up again. It now earns 1.80% APY on all balance tiers.

Important Features Listed in the Disclosure

Below is a summary of the important features of the HSBC Direct Savings based on the HSBC Direct Savings Terms and Charges disclosure:

  • Minimum deposit to open HSBC Direct Savings is $1.
  • Balance tiers of $15k, $50k and $100k are listed, but currently all tiers have the same APY.
  • $350,000 is the maximum when funding the account or making additional daily deposits/ withdrawals with an electronic transfer to or from another financial institution.
  • Maximum account balance is $2 million.
  • No monthly maintenance fee
  • Requires that the initial funding deposit be New Money
  • Interest is compounded monthly and credited monthly
  • ATM/Debit card is not available for HSBC Direct Savings
  • If you close your account before interest is credited, you will not receive the accrued interest.

ACH Transfers

There’s not much documentation describing HSBC’s Bank to Bank Transfers. HSBC uses the same name for ACH transfers (Bank to Bank Transfers) as it did before 2010. The old system had a few issues such as slow transfers. Using HSBC’s online chat service, I received several details about the service. Based on the CSR’s answers, the new service appears to be better.

  • Using Bank to Bank Transfers online, you can transfer up to $350,000 daily both in and out of your HSBC account at once. There is a $2,000,000 limit per rolling 30 day period. Please note you can't have more than $1,050,000 pending at any time.
  • The link that is used for the initial funding is not saved. Once the account is opened, the link would need to be added again for ongoing Bank to Bank transfers.
  • An unlimited number of links to external accounts can be established.
  • Links to external accounts can be established through trial deposits or instantly by providing that bank’s login credentials.
  • Bank to Bank transfers can take around 2-3 business days to fully transfer.
  • Incoming funds from Bank to Bank transfers are available the same business day that HSBC receives the deposit.
  • Customers are allowed to push or pull funds using another bank’s ACH service.

HSBC Direct CDs

HSBC Direct is also offering online CDs, but the rates are currently not competitive.


HSBC Direct accounts are nationally available. Only online applications are allowed. HSBC isn’t allowing existing HSBC customers to convert their existing savings account into this new HSBC Direct Savings account. Both new customers and existing customers must apply online at, and the account must be funded with money new to HSBC.

According to the CSR, the application process is all online. It does not require receiving or returning anything via snail mail. That’s an improvement from the old system.

POD Beneficiaries and Trust Accounts Are Not Available

HSBC Direct accounts cannot have POD beneficiaries, and trust accounts cannot be established. Only the basic individual and joint accounts can be established.

Bank Overview

As an internet division of HSBC Bank USA, N.A. (HSBC), HSBC Direct operates under HSBC’s FDIC Certificate and shares its financial history.

HSBC is the 14th largest bank in the U.S. based on assets. As of March 31, 2018 data, HSBC has just under $180 billion in assets and just over $134 billion in deposits.

HSBC/HSBC Direct has an overall health rating of "B+" on, with a Texas Ratio of 4.61% (excellent), based on March 31, 2018 data. HSBC has an excellent capitalization level of 13.02%, a result of holding $179.97 billion in assets, with $23.42 billion in equity. Deposits have shrunk dramatically in the last year which may be one reason for HSBC bringing back HSBC Direct. Total non-brokered deposits have fallen $16.11 billion, resulting in a decline of 12.19% for the year. Please refer to our financial overview of HSBC/HSBC Direct (FDIC Certificate # 57890) for more details.

How the HSBC Direct Savings Account Compares

When compared to the 219 Savings Accounts and 185 Money Market Accounts tracked by that are available nationally and have no large minimum requirements or small maximum balances, six savings accounts and five money market accounts have higher rates than the HSBC Direct Savings Account.

To review the top Savings and Money Market rates, both nationwide and state specific, please refer to our Savings Account rates table and Money Market Account rates table.

The above rates are accurate as of 7/19/2018.

Related Pages: savings accounts, nationwide deals, Internet banks

dmprisk   |     |   Comment #1
Finally...THANK YOU for putting how the interest is compounded and credited. I always have to try to find that information and yes, it does make a difference, might be small amount to some, but still good to know. Also would be great to know if Trusts are allowed, or POD etc.
Common Cents
Common Cents   |     |   Comment #2
Would be great if people read the entire article before asking questions.

And no, how the interest is compounded doesn't matter at all, just read the APY.
myself   |     |   Comment #3
1.80% is too low. When are you going to give 5% interest
larkin   |     |   Comment #4
Is HSBC really worth it?
DCGuy   |     |   Comment #13
It could be if you do a lot of business or travel involving Asian countries.
buckeye61   |     |   Comment #5
While I'm always happy to see any Bank offer higher rates, I just don't see a big enough premium at HSBC to consider it over Banks like Ally and Discover who both offer accounts that are much more user friendly.
Not_HSBC   |     |   Comment #6
These guys are rated at the bottom for a reason. Caused me a lot of frustration.
Prometheus   |     |   Comment #7
Gotta agree with ya. I once did business at HSBC. Found them a bit haughty and imperious, and incredibly PC. I no longer do business there.
MidAtlantic   |     |   Comment #8
I agree. One experience with them was one to many. I would rank all the main on-line banks like Ally, Synchrony and Barclays way above HSBC.
pinkterror   |     |   Comment #9
I think they converted my online savings account. will they convert it back or would i need to ask them to do it?
Rickny   |     |   Comment #10
Capital One is offering a bonus of $200 when you open a 360 Money Market account and complete the following requirements:
Use promo code BONUS200
Deposit $10,000 or more by August 31st, 2018
HSBC   |     |   Comment #11
I did that, it took 7 months to collect the bonus after numerous complains and back and forth calls. How are you avoiding the monthly service fee is another story. Many ACHs do not count toward avoiding the monthly fees. When all was settled and done, my net bonus came to $75, not $200.
Rickny   |     |   Comment #12
I myself wouldn't give them a dime. Just posting the info. Enjoying my Northern Direct Savings account paying 2.26% guaranteed tiil June 2019. HSBC is one of the worst banks out there. They closed all the branches near me.
Anonymous   |     |   Comment #14
Agreed, I had MMA promo end two years ago, went into NYC branch to close account and they gave me a hard sell to invest in mutual fund. I said no give me my money. They made me wait 20 min in branch to wait for manager come back from coffee break, hassle me and then finally gave me a check. I agreed opulent give them a penny ever again. This bank really wants to stick it to you.
DOA   |     |   Comment #16
The way they mistreated you, reminds me a lot of how Bank Of America did me many years ago. After I waited that same 20 or so minutes, then I had to wait in line about 15 more minutes to get the check from the cashier. While I was there waiting, I listened to them selling a 5 year CD to an old lady for about 400 basis points less than the average rate at that time. I wanted to get up out of my chair and tell her not to do it. Most CD customers generally have good memories and they usually will not be back. Even if the bank might have a slightly better CD rate, I have gone with another bank just to avoid the hassle that I experienced once before.
Anonymous   |     |   Comment #17
DOA - same thing with me, years ago while I was waiting they tried to sell crappy CD to an old couple too. I walked right over to them wrote down on a piece of paper I told them to go to that webpage and do their homework. Better advice I think they got. I walked out of that bank and felt good about myself - my good deed for the day.
DOA   |     |   Comment #18
Good idea. Thanks for sharing. I wish I had done that for her.
larry   |     |   Comment #19
Ahhh, that must of been when Ken Lewis was running the show. No surprise there and he was well compensated for those upselling techniques!
RJM   |     |   Comment #15
I too had an HSBC account long ago. Can't recall the exact details but I left with a bad taste in my mouth. I won't be back.
TooManyAccounts   |     |   Comment #20
I have a HSBC online savings account from back in the old (high rate) days. I've kept some money in it due to the convenience of ATM access. When I saw this latest offer, I contacted them via chat to find out if my account would have the higher rate, and if not what would need to be done to get it. What I found out is that it would not automatically get the new rate, that I would have to create a new account and fund it with new money. All this for the privilege of an account that still isn't among the rate leaders.

Not worth the hassle. I instead pulled out the remainder of my account to much greener pastures and will be closing it out the existing HSBC account once the transfer is complete.

I am glad the deal was posted - it got me off my butt regarding the exiting account.

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