High Yield Online Savings Account Review – HSBC Direct

UPDATE January 21, 2010:  HSBC Direct Renamed – HSBC Advance is the New Name

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I have used the HSBC Direct High Yield Online Savings Account for several years now.  They have always been in the top tier of interest rates, without offering unnaturally high initial rates that are unsustainable.  I have signed up for other online savings accounts over the years; however, I selected HSBC due to the following reasons:

  • well managed and stable global bank (they were not part of the government TARP bailout)
  • competitive ongoing interest rate
  • excellent security procedures
  • fast ACH transfers to and from my non-HSBC checking account
  • no minimum balance
  • no fees
  • FDIC insured
  • and perhaps the most important…my wife had a checking account at HSBC! :)

Here is the login screen.  HSBC Direct uses enhanced security with a virtual keyboard.  Extra security with very little additional hassle. [click on the pictures for larger images]

Here is the account summary screen:

Finally, here is the transaction detail page. Simple yet very effective format:

As I observed at the top of this post, HSBC is well-regarded as a consistently stable online bank.  Here is an excerpt from Forbes back in June 2009:

Five Highest-Yielding Online Savings Accounts

“You’ll notice that traditional online-only powerhouses like HSBC are missing from the top spots. But you’ll also see that the majority of the online banks able to offer above-average yields don’t appear to be in as strong financial shape as HSBC, which has a loan-to-deposit ratio of 0.86. In other words: These rates are high, but may come with a catch.

So do not choose based solely on rate.  The old adage “If it sounds too good to be true, it usually is……”

Please let me know if you have any questions regarding  HSBC Direct Online Savings . I am very familiar with it.

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