With a lot of online savings accounts, you are dealing with banks that haven’t been around that long and don’t have a huge track record of success. HSBC Direct is definitely an exception to this trend. It has been operating since 1850 and has over 400 branches throughout New York. It’s headquartered in Wilmington, Delaware and has nearly 43,000 employees. There is no wonder why their slogan is “The World’s Largest Bank.” We know that bigger does not necessarily mean better. HSBC has been around for quite some time, but is their online savings account a great place to put your money? Let’s find out.

Perhaps the most prominent reason people consider HSBC Direct is its very high interest rate. HSBC Direct is even offering a promotional rate of 3.50% APY on any new money until September 15th. The highest banks offer rates of about 3.75% APY. However, they are generally new banks that have not established a strong reputation yet.

The account has no monthly fees and no minimum balance, which is par for the course in the online savings world. Another big benefit of choosing the HSBC Direct online savings account is that you can deposit or withdraw money at any HSBC ATM. If you live in the north east, this might be a big benefit to you. All money deposited in HSBC’s accounts are FDIC insured up to $100,000.

HSBC has a number of security features to keep your money safe from any hacker or person that’s out to get you who wants access to your account. All of the data transferred between your computer and HSBC Direct is encrypted with 128-Bit SSL encryption. In addition, HSBC does an excellent job managing their servers with intrusion detection tools and a series of firewalls to keep your account information safe.

The signup process is pretty typical of online savings accounts. You apply online, give them standard personal information, and then they will ask you questions about your credit report to make sure that you are who you say you are. You don’t have to mail in anything. They’ll send two trial deposits to your checking account that you want to fund your savings account from. You go to a special page and type in those numbers to verify that it is your account.

After you verify your trial deposits, you have to play the waiting game. HSBC Direct will snail mail you two letters from New York. They’ll send you a customer ID and a password in two different letters to allow you to login. This can take nearly two weeks if you live on the west cost! After you get that information, you can login and setup an external transfer so that you can move money between your HSBC Direct account and your checking account. You should receive your HSBC ATM card a few days later. It does take a little bit of waiting to sign up for this account, but it’s not a deal breaker.

Overall the HSBC Direct team provides more than adequate customer service. They offer a toll free support number which is available 24/7. Other bloggers have shared that they have had overall positive experiences when dealing with the customer service team. This is definitely not the case for all online savings accounts.

At the end of the day HSBC Direct’s online savings account is a pretty decent place to put your savings at. Their interest rates have stayed competitive, they have excellent customer service, and you can use your HSBC debit card to deposit and withdraw money.

Be Sociable, Share!

• 

This entry was posted on Thursday, August 14th, 2008 at 12:41 pm and is filed under reviews. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

• Current Savings and Checking Account Setup Yesterday I blogged about the organization and how I keep track of my personal finances. Now I'll try to shed a little light on my current savings and checking accounts, as well as what I may do in the future....
• Best Online Banks When it comes to saving for emergencies, I subscribe to the theory "out of sight, out of mind." Saving money with one of the best online banks helps to protect me from myself, as a recovering spendthrift. Our emergency funds...
• Money Merge Account Analysis Pt 21 UFirst Financial published this letter to its agents sometime in 2008, I offer it, in full: Dear Agents, 2007 has been nothing short of phenomenal in UFirst  growth, sales and promotion. This is due to the undying and unwavering efforts...
• Stashing Your Cash If you want to access your money quickly, where do you put it? Where do you hide your emergency fund, in a cookie jar, a safe or in the bank? Knowing where to stash your cash is vitally important, and...
• Money Merge Account Analysis Pt 14 (My Money Merge Analysis Compilation, a PDF containing all of my MMA posts has been updated to be current to post 32). In the spirit of the exaggerated claims made by the proponents of the money merge account, this is...