HSBC Direct Savings Review

HSBC Direct Savings is an online-only savings account offered by HSBC, the massive international bank. Its rates and terms place it among the better savings accounts.

If you’re interested in banking online, this account is worth a look.

HSBC Direct Savings

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How HSBC Direct Savings compares

HSBC Direct Savings is rated among NerdWallet’s top savings accounts. Its terms — no monthly fee, low required opening deposit — are similar to or better than many of its competitors.

» Want more options?: See NerdWallet's favorite high-yield online savings accounts

Competitive APY: HSBC Direct's savings APY is competitive with other online savings accounts, and it's much higher than that of traditional brick-and-mortar banks, including HSBC's basic option. Its basic savings account, offered by the brick-and-mortar version of the bank, currently pays 0.01% APY on low balances.

Low opening deposit requirement: It’s not unusual for an online account like HSBC Direct Savings to skip monthly service fees or have a low opening balance ($0 or $1). However, some competitor accounts require a hefty balance or other means to earn the highest interest rates. With HSBC Direct Savings, you earn the top rate as soon as you make a deposit, no matter the amount.

Note that your opening deposit to HSBC Direct Savings must be money that’s new to HSBC. If you’re already an HSBC customer, you can’t transfer your funds from one of those accounts to HSBC Direct Savings.

Subpar app experience: NerdWallet readers have noted that the U.S. versions of HSBC’s mobile apps lack some functionality that other banks’ apps offer, including the abilities to view account APY, set up account alerts or transfer funds into an HSBC Direct account from an external account. "HSBC continues to invest in the mobile app and money movement capabilities to improve the experience for our customers,” says Ryan Lanfear, head of digital messaging experiences and sales at HSBC Bank USA. Lanfear notes that account alerts are a particular focus.

» Get the details: Compare HSBC Direct Savings with NerdWallet’s best online savings accounts

What you need to know about HSBC and HSBC Direct

• Products: In addition to its savings account, HSBC Direct offers checking and some CDs. Brick-and-mortar HSBC offers a full range of financial products, including checking, savings, CDs, loans and investments.

• Checking: Brick-and-mortar HSBC has four checking options, most of which have high monthly fees. Deposits kept in HSBC Direct Savings accounts can go toward waiving those fees. You may also qualify for a sign-up bonus. HSBC Direct Checking doesn’t charge a monthly fee.

• CDs: HSBC Direct and brick-and-mortar HSBC both offer CD terms up to two years, substantially less than what many competitors offer. Rates top out at 1.30% with HSBC and 1.70% at HSBC Direct. Banks with longer terms typically offer higher yields.

• Branch and ATM access: These areas aren’t HSBC’s strong suit. It has many fewer domestic branches than competitors such as Chase and Wells Fargo, and covers only around 10 states. HSBC also has substantially fewer ATMs than many big-name brick-and-mortar banks.

• Overdraft policies: HSBC’s overdraft fee is about average at $35, but it has fewer overdraft protection options than some other banks. For example, it doesn’t allow overdraft protection transfers from savings, and it charges for transfers from a line of credit or credit card.

» Dive deeper: Read NerdWallet’s HSBC review

HSBC Direct Savings is a winner

HSBC Direct Savings is a solid, low-hassle account on par with the best in the industry.

Consider this option if you’re already covered when it comes to checking and want a high-yield online solution for your savings.