HSBC Bank Review: Checking, Savings and CDs

The HSBC Premier checking account is available to open online. You’ll earn 0.01% APY — not much, but a rate that’s on par with comparable accounts at the biggest banks — with a minimum balance of $5.

You’ll need to have a balance of at least $100,000 or $5,000 in direct deposits each month in order to avoid the steep monthly fee of $50, which is much higher than what you’ll pay for premier-level accounts at other, larger banks. You can also avoid the fee by having an HSBC residential mortgage loan.

Having an HSBC Premier checking account is a requirement to have an HSBC Premier Relationship savings account. The savings account offers a standard interest rate of 0.05% APY on balances of at least $1.

To earn 4.30% APY, you’ll need to meet one of the following requirements each month: Spend $500 with your debit card, receive at least $5,000 in direct deposits into your linked checking account, or have a $500,000 residential mortgage loan with the bank. If you do not meet at least one of those requirements, the account will earn the standard APY.

HSBC requires $1,000 to open a CD, which is on the lower end for bank CD minimums. HSBC offers only three term lengths: six months, one year and two years, but rates are solid. Many online banks offer terms up to five years, and slightly more competitive rates.

HSBC offers more than 55,000 ATMs, including those in the Allpoint network, which has machines at common retail stores. Account holders have access to about two dozen branches (called Wealth Centers) along the East and West coasts.

Customer support is available 24/7 by phone, as well as on Twitter, on the HSBC website and in the HSBC apps. The apps, however, are poorly rated: Android users give the HSBC app 2.1 stars and iOS users rate it 1.4 stars (both out of five stars).

HSBC doesn’t charge overdraft fees for its Premier checking account. The bank pays for overdrafts on checks and preauthorized, automatic bill payments, but doesn’t allow them for ATM withdrawals or debit card transactions.

HSBC doesn’t charge overdraft fees but it also doesn’t offer overdraft protection transfers from a linked account or line of credit, which can be inconvenient if you’re waiting for a direct deposit and need to pay an important bill immediately, for example. Many financial institutions have reduced or removed their overdraft fees; you can now find regular checking accounts with no overdraft fees — and free overdraft protection transfers — that don’t require HSBC’s high minimum balance or high monthly fee.