HSBC Direct Offers 6% APY On New Deposits Until April 30

Now through April 30th, HSBC Direct offers a whopping 6% APY on any new money deposited into an online savings account. That’s better than most CD’s.

For current HSBC Direct customer, the old 5.05% will apply to your “old” money, but 6% will apply to any “new” money you deposit.

HSBC Direct is one of the better ones online savings accounts (ING Direct is another). $1.00 minimum balance. Free Bank to bank transfers. With a HSBC Direct debit/ATM card, your money is always close at hand.

Your traditional brick and mortar bank is probably giving you around 1.25% interest. With 5.05& and now 6%, your money really has a chance to grow. HSBC pays interest monthly, giving you a nice psychic “win” every four weeks.

If you haven’t tried online savings accounts, HSBC Direct’s 6% promotion makes now the perfect time. — BEN POPKEN

New Money Promotion [HSBC Direct] (Thanks to Max!)


Edit Your Comment

  1. jhpope says:

    This is great but after having some troubles starting an account because I am in college and would like mailings to come to my apt. in philadelphia and my legal address being back in NY they had trouble verifying my identity. After calling and reapplying with my legal address figuring I could get my parents to open anything and tell me my password and such, my account has been pending for around a week as they continue to verify my identity. I will call them again soon to figure out how long it will take.

  2. 5cents says:

    Sounds decent. Importantly its FDIC insured. Online accounts often aren’t so insured.

  3. Charles Duffy says:

    6% is what I’m paying on my house…

    …so I’m just as well off putting my money into a 6% savings account as I am trying to pay down the mortgage early — somewhat better off, for that matter, because there’s more liquidity in an emergency situation.


  4. shoegazer says:

    Funny how the equivalent account (First Direct) has been savaged here in the UK for charging fees on current (checking) accounts. Also there have been several complaints about the level of customer service. I wonder whether this just means the online alternatives in the US are much worse.

    ING Direct has not kept up with the rate rises from the Bank of England either. I used to love getting 4.75% on my savings until the base rate surged to 5.25%. Now I’m looking to switch but dreading the inevitable hassle, lost transfers, etc.

  5. etinterrapax says:

    I just opened an account with these guys because they’ll let me add my son as an auxiliary owner on a non-joint account. Now I have a place to deposit checks written to him. Their application process was easy and smooth. And also unlike ING, where we also have an account, you can get an ATM card if you want to use it for emergency funds.

  6. evolent says:

    “That’s nearly as good as some CDs”

    Actually, it totally wipes the floor with most CD’s.

  7. thejbs says:

    I have one of these already linked to a HSBC checking acct. if I transferred most of my balance to my checking, and then back to the online savings, do you think that would give me the 6%?

  8. dwarf74 says:

    I have an HSBC Direct savings account, and it has been positively wonderful. Getting it set up took some time since I did it right around when I moved, but since then they’ve been phenomenal. The website’s good and the representatives have been extremely helpful when I’ve had to call. I also love the monthly-calculated interest.

    This will be a great deal for my tax refund & annual bonus…

  9. Victorlazlo says:

    No, it applies to deposits during the promotional period, minus withdrawls. So if you take out $1000, and deposit $1000, your net qualifying deposits will be $0.

    Its not worth the trouble anyway. You only get 6% until April. So existing customers are only getting an extra 0.95% APY for 3 months, tops. Not a big deal unless you are Uncle Pennybags.

  10. synergy says:

    I’m glad you posted this. I’ve been thinking of opening a savings account in the next few days and this would be helpful.

    BUT. I’m using their calculators and something’s off. I plugged the same amounts of savings in the same time period and I’m being show a much higher balance at ING for the same interest rate. Anyone know why this might be other than one of these scripting/calculators is bad?

  11. zl9600 says:

    This is not a big deal. Through April 30th you get 6%. Then it drops like a lead balloon. They may be a great online bank but a great deal for people who don’t have a lot to deposit it ain’t.

  12. Morton Fox says:

    Does HSBCDirect currently have a referral bonus? I may be switching from another bank to take advantage of this special.

  13. faust1200 says:

    To the reader that says the rate will drop like a lead balloon: FWIW, I called HSBC and asked what happens to the interest rate after the introductory period and he said it goes to the normal interest rate (whatever it may be at that time) which at this moment -he said – is 5.08%. He definitely said 5 point something sorry I didn’t write it down.

  14. faust1200 says:

    From their website:

    # 6.00% APY* on New Money until April 30.
    New Money earns this promotional rate until April 30. Then your money gets our highly competitive rate, currently 5.05% APY. For more details on the New Money Promotion, please see footnote below.)

    Here’s the link if you want to see:

  15. some_stupid_nut says:

    I tried to open an HSBC account before. It annoyed the hell out of me. They couldn’t confirm my identity for some reason. So after a few calls and faxes, and letters, I gave up.

    I gotta admit this is a kick ass rate though. I have an ING Direct CD and its only 5.1%! ING regular savings is only 4.5%

  16. facted says:

    I have a citibank bank account and I considered opening an ING Direct account, before I realized that citibank offered 5.05%. I’m not sure the extra 1% for a few months is worth opening up another bank account for, but if you anyone out there has a citibank account, think about keeping it in the savings section and you get 5.05%.

  17. nan says:

    I like HSBC direct because of the ATM card. Of course, one would have to actually live near a location for this to be useful. I had building up an emergency fund with ING for awhile, but the delay in transferring funds kind of defeats the purpose of it being for immediate emergencies. I dunno, Maybe I just worry too much about these things.

  18. BotchedJoke says:

    HSBC is a great company. I was in Hong Kong last year partying with some very nice Aussie woman, and I got pick pocketed (is that a word?) Well, being that HSBC is based in Hong Kong they had a new credit card THE NEXT DAY! Amazing.

  19. thecolororange says:

    I use AmTrust Direct. Currently 5.30% APY (it’s gone up several times in the 6 months I’ve had an account with them), account features comparable to HSBC (in my opinion), and I’ve always had a good experience with them.

  20. DTWD says:

    I went with AmboyDirect’s premium savings account since there was no minimum. It’s 5.25% APY

  21. spincycle0 says:

    if this is the same HSBC bank that does financing for best buy/circuit city/ and other retailers it is one of the most predatory lenders in the country and you’d be totally insane to trust them with your savings.

  22. Flynn says:

    Wait, I’m confused. I keep hearing about these accounts. If there are no brick & mortar locations, how do you deposit/transfer money into them? Do you have to mail checks? All of the banks I’m currently with (Chase, National City) charge for funds transfers to accounts that aren’t theirs, so there’s no easy way to move money electronically without incurring a fee, and unless you’ve got enough savings (or putting a large enough % away), it seems like those fees would negate any good interest rate.

    What am I missing?

  23. capitalass says:

    @Charles Duffy: “6% is what I’m paying on my house…

    …so I’m just as well off putting my money into a 6% savings account as I am trying to pay down the mortgage early — somewhat better off, for that matter, because there’s more liquidity in an emergency situation.”

    I would be slightly cautious with that reasoning as your mortgage is likely compounded monthly, whereas, your savings are compounded yearly, and only at 6% for a short period of time.

    Basically, you would be reducing your debt more than you would be generating revenue by not deferring your money into the savings account.

    In addition, you would be taxed on any income generated by the savings while you can probably write some of your taxes off from the mortgage (though you may still be able to max that out and transfer some money to the savings account).

    Still, that’s a pretty good rate to not feel rushed to pay off. You could focus on paying other loans, increasing credit card payments, or making other investments.

  24. Jason-Ryan-Isaksen says:

    That is nice but Paypal offer 5.05 percent on balances you keep there, which is a lot easier much of the time. I keep incoming money there a lot longer than putting in a checking account which pays peanuts.

    Jason Isaksen

  25. Russellkhan says:

    Be careful with Paypal, they’re not a bank, and aren’t held to the same accountability as banks are. There have been many complaints of problems with Paypal, including people having access to their money frozen for little or no reason. Also, since they are not a bank, of course they have no FDIC insurance.

    For much more information, take a look at and