The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
If you have some extra cash—even just a little—you need a savings strategy that lets you earn money on your own money. And not just a little money, but a fair amount of it. You can opt for a certificate of deposit or CD. But, if you want more access to your cash, you can also opt for a high-interest online savings account, like the HSBC Direct Savings account.
With a high-interest savings account, your cash earns more than it does in a regular savings account at a bank or credit union where you earn as little as a 0.01% annual percentage yield or APY.1 The HSBC Savings Account pay you 2.25% APY.
Saving your money is easy with an HSBC Direct Savings account. This account offers:
The HSBC Savings account’s competitive interest rate (APY) of 2.25% is one of the higher rates available for a high-interest savings account. This account is a great option if you don’t have a large amount to open the account because you can open it with just $1. And even if your balance drops below $1, you won’t pay a monthly maintenance fee. Of course, you also won’t earn interest.
Many other savings accounts require minimum balances and charge fees of $4 to $10 a month if you don’t maintain that minimum balance.
The higher interest rates of online savings accounts tend to be offset by a few missing features that may dampen your higher earnings depending on your personal preferences. For the HSBC Direct Savings account, like many online savings accounts, potential drawbacks include:
When you choose high-interest savings account, like the HSBC Direct Savings account, you give your money the extra interest rate it needs to grow in value compared to a regular savings account with an interest rate as low as 0.01%.
If you start with just $100 when you open your account and set aside $50 a month in the HSBC savings account, in five years, you have more than $3,249.84, based on yearly compounding with compound interest! Put that same money into a regular savings account with a 0.01% interest rate—just one one-hundredth of one percent—and at the end of those five years, you only have $3,100.65—a reduction of $149.19. Even at the national average savings rate of .10%, you still lose $143.33.2
Depending on your age, you may not think twice about banking only on your phone or computer. Or, you may think that banking means walking into a branch at least occasionally.
You may not be aware though that there are perks to banking exclusively online. The biggest perk is more money in your pocket. When a bank doesn’t have to pay for a physical location or people to staff those locations, they can give you—the customer—at least some of the money they save. That’s why you’ll find that many online-only savings accounts—even if offered by banks that have branches—offer a higher interest rate than regular savings accounts.
The HSBC savings account lets you not only manage your account online but simply take a picture of a check and deposit it into your account. There’s no stamp or envelope needed. And while this benefit isn’t exclusive to HSBC, it is pretty cool.
The HSBC app also lets you receive notifications on your phone or device about your balance and transactions.
Whether you choose to set up a savings account to simply get more interest, save toward a goal like buying a house or car, or to simply have at least six to eight months of money set aside in an emergency fund, you can easily set up your HSBC Savings account online through Credit.com.
Before you start, have your current bank account and routing numbers and your Social Security number handy. You can find your account and routing number on a check or your bank or credit union’s website.
HSBC has its origins in global banking. It started in 1865 as the Hong Kong and Shanghai Banking Corporation Limited. Initially, the bank focused on financial transactions across China but eventually expanded to other regions of the world, including North America.
Today, HSBC has offices in 66 countries and territories, including New York, Los Angeles, Chicago, Atlanta, Houston, Seattle, Miami, San Francisco and Washington D.C. More than 39 million people benefit from HSBC banking products that include consumer checking accounts, savings accounts, CDs and loans along with a variety of other products.
The HSBC savings account isn’t the only available savings account to offers a solid APY and useful online banking tools. Other available high-interest savings account options available from Credit.com include:
A strong financial future starts with a savings plan. You don’t have to save a lot. You can save a little now and save more later when you can. The sooner you start saving though, the sooner you start watching your money grow. And with your money tucked into an account, instead of your mattress, you can avoid the urge to spend it when you don’t really need to.
The HSBC Direct Savings account has a lot going for it, not just its high-interest rate of 2.25% that lets your money grow more than it will at your local bank or credit union. It has online features and a mobile app that make using it a breeze. But, before you open your HSBC Savings account, do some homework and review your other options.
1 Based on the available savings rate for the Wells Fargo Way2Save® Savings account as of April 2019.
2 National savings rate average from the FDIC.gov website as of 3/18/2019. https://www.fdic.gov/regulations/resources/rates/historical/2019-03-18.html.
NOTE: Accounts mentioned here may not be visible on Credit.com at certain points due to partner caps on the number of accounts that can be opened in a given day or timeframe.
DISCLOSURE: At publishing time, the HSBC Direct Savings Online Savings Account is offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for this account. However, this relationship does not result in any preferential editorial treatment. This content is not provided by the financial institution(s). Any opinions expressed are those of Credit.com alone and have not been reviewed, approved or otherwise endorsed by the issuer(s).
Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.
Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.
Try ExtraCredit for free
Over $100 of value. Cancel anytime.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.