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HSBC Savings Account Review

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older couple discussing hsbc savings account in their living room

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.

The Benefits of an HSBC Savings Account

Saving your money is easy with an HSBC Direct Savings account. This account offers:

  • 25% APY on your savings
  • The peace of mind of having your money in an FDIC-insured institution
  • No hidden fees
  • $0 monthly maintenance fee
  • $1 minimum balance opening deposit
  • Mobile check deposits for super-fast, easy direct deposits to your account
  • 24×7 online and mobile banking app account management and access
  • Live chat support
  • Automated phone banking
  • Free online budget tools
  • Up to 7 years of online eStatements

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.

Drawbacks of an HSBC Savings Account

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:

  • No access by ATM access to make cash withdrawals of your money; withdrawals are limited to online transfers.
  • No check writing, direct checking account or debit card to use with your account.
  • A limit of six withdrawals/debits per month/statement cycle—a federal regulation that applies to any online savings account.
  • Not the absolute highest APY available. The APY of 2.25% is good, but it’s still not the best you’ll find.
  • No offline access. While HSBC has brick-and-mortar locations, the HSBC savings account is solely an online account.

How a Direct Savings Account with a High-Interest Rate Helps You Earn More

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

Interest Earned on Different APYs Over Five Years

APY on Beginning Balance of $100 Added Monthly Deposit Ending Balance at 10 Years
2.25% $50 $3,249.84
.10%–national average2 $50 $3,106.51
.01% $50 $3,100.65

The Benefits of Banking Online or on Your Phone

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.

How to Set Up Your HSBC Direct Savings Account

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.

Who Is HSBC?

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.

Other Online Savings Account Options

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:

Realize Your Financial Goals

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).


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