HSBC Direct consistently is among the highest savings rates onine and will definately beat the rate you are getting at your local bank. They are consistently have one of the best high interest savings account rates. Dedicated savings accounts (that are separate from your regular checking account) can be a great way to start your emergency fund or other big ticket items.
The Company
HSBC is a respected international bank with a reputation of credibility. They have good customer service (on the phone and through email) and a wide range of banking products. Because the savings account is provided by an established bank you can rest assured your money is safe.
Requirements
With this bank you don’t have to worry about minimum account balances and there are no inactivity fees. You will need to be over 18 and be a US citizen to set up an account. Make sure you have your social security number and an active checking account (to transfer money to their bank). Over all they don’t ask for anything more than other banks. As a security measure make sure your browser is up to date and that you actively run virus protection software.
Setting Up an Account
Setting up an account is fairy easy but verifying your settings is a little cumbersome. HSBC makes this as easy as possible but like most things online they could improve. But when your financial security is involved it’s worth it to take all necessary precautions. One thing that sets HSBC apart from other sign up processes is that they run a credit check as part of the account setup process. They’ll ask you three questions pertaining to your credit history just to make sure you are who you say you are. They also send you a letter containing a verification password (or temporary password). They actually mail this to your physical mailing address. It usually takes less then a few days. You will get a number of emails that are used in the new account creation. When you have everything you will need to enter it in the verification screen.
Time to Setup Account: 8 minutes
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Signing In
After you setup an account HSBC has some extra security measures. For example, they require you to enter your password through the keyboard and by typing it in using an online keyboard. Having more security is always a good thing so I don’t fault them in this area. I’ve noticed other banks following HSBC in many of their security measures.
Transfering Money
Like other online banks when you make a transfer in or out of your account there is a 3-4 day processing time. In my experience this in normal (even though it can be a pain sometimes). If you have a HSBC bank account the transfer time is next to nothing.
Summary
HSBC is a solid bank with a very secure account creation process. They will take care of you if you need help. They have a competitive savings rate tied to your own ATM card. Overall they have been one of my favorite banks to work with.
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