HSBC Direct Bank Review 2021

Published January 2021 by Matthew Goldberg

AT A GLANCE
4.0

Bankrate Score

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24/7 Customer Service

No monthly fees

Top CD rates

HSBC Direct is a great option for savers looking for a digital bank that pays competitive yields on short-term CDs.

  • Savings
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    3.3
  • Checking
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    4.3
  • CDs
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    3.8
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.50 % APY

    $ 0

    Min. balance for APY

    American Express National Bank

    Member FDIC

    Savings account

    0.50 % APY

    $ 1

    Min. balance for APY

    Axos Bank

    Member FDIC

    Checking account

    1.25 % APY

    $ 50

    To open

    $ 0

    To avoid fees

    Overall

    4.0

    Bankrate Score

    HSBC Direct accounts are available across the U.S. The accounts are through HSBC Bank USA, N.A. If you have an account, you can make a deposit or withdrawal at one of the HSBC locations in the U.S.

    HSBC Direct's CDs offer competitive APYs, while its checking account doesn’t charge monthly maintenance fees.

    What we like

    • HSBC Direct offers competitive CD rates.

    • The checking account doesn’t charge monthly maintenance fees.

    • The bank doesn’t charge monthly service fees on its accounts.

    What we don't

    • The savings account APY is much less competitive than in the past.

    • Only three CD terms are available.

    • The HSBC app receives low ratings on iOS and Android devices.

    Savings accounts

    3.3

    Bankrate Score

    OTHER SAVINGS OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.50 % APY

    $ 0

    Min. balance for APY

    The HSBC Direct Savings account used to offer one of the best yields in the country. The APY is much lower now and only slightly above the national average, so savers searching for a high-yield account will want to compare other options.

    On the plus side, the account requires only $1 to open and doesn't charge a monthly maintenance fee.

    What we like

    • The HSBC Direct Savings account has no monthly maintenance fee.

    • Only $1 is needed to open an account.

    What we don't

    • The APY is low, only slightly above the national average.

    Checking accounts

    4.3

    Bankrate Score

    OTHER CHECKING OFFERS YOU MAY LIKE
    Axos Bank

    Member FDIC

    Checking account

    1.25 % APY

    $ 50

    To open

    $ 0

    To avoid fees

    The HSBC Direct Checking account is a free account that pays a little bit of interest. You can open an account online with as little as $1, and there is no monthly minimum balance requirement. The HSBC Direct Checking doesn’t offer checks for this account, however.

    HSBC Direct customers have access to HSBC’s network of ATMs, though the bank isn’t a part of a bigger ATM cooperative such as Allpoint. However, HSBC doesn’t charge a fee for withdrawing money from a non-HSBC ATM.

    What we like

    • The HSBC Direct Checking doesn’t have a monthly maintenance fee.

    • You only need $1 to open an account.

    • HSBC doesn’t charge a fee for withdrawing money from a non-HSBC ATM.

    What we don't

    • The HSBC Direct Checking account doesn't offer checks.

    CD rates

    3.8

    Bankrate Score

    HSBC Direct offers three standard CD terms of six, 12 and 24 months, making it a smart option for savers with short-term goals. Savers with long-term goals will want to continue searching for a bank that offers longer-term CDs.

    All three CDs pay a competitive APY and only require $1,000 to open. The bank doesn’t offer any specialty CDs, such as a bump-up or no-penalty CD.

    What we like

    • HSBC Direct CDs pay a competitive APY.

    • All CDs require only a $1,000 deposit to open.

    What we don't

    • The bank doesn’t offer any specialty CDs.

    • There are no long-term CDs available.

    Bank experience

    HSBC Direct offers several standout features. You can reach a bank representative 24 hours a day, seven days a week. You can also take advantage of HSBC Direct’s money management tools, which can help you budget and create savings goals. If you’re comfortable sharing data, you can also link non-HSBC accounts. In doing so, you can see your whole financial picture in one place.

    About HSBC Direct

    HSBC Direct accounts are through HSBC Bank USA, N.A. and are offered online in all 50 states. HSBC Bank USA has branches in California, Connecticut, Florida, Maryland, New Jersey, New York, Pennsylvania, Virginia, Washington and Washington, D.C.

    HSBC has more than 40 million customers worldwide, and its worldwide network covers 65 countries and territories.

    HSBC Direct began offering accounts in March 2018. It offers a checking account, certificates of deposit and savings account.

    Matthew Goldberg Twitter Created with Sketch. @MATTATBANKRATE

    Matthew Goldberg Twitter Created with Sketch. @MATTATBANKRATE

    Matthew Goldberg is a consumer banking reporter at Bankrate. Nearly his entire career has either been as a reporter or working in financial services, in banking and insurance. His writing has been featured on MSN, appeared in Sports Illustrated On Campus, The Atlanta Journal-Constitution, The Buffalo News and other publications. He has been honored by both the Illinois Associated Press Editors Association and the Illinois Press Association. Matthew is currently on the Society for Advancing Business Editing and Writing (SABEW) Board of Governors. He has previously served on conference planning committees, the training committee and the finance committee for SABEW, which is the world's largest and oldest organization of business and financial journalists. His reporting career has included working as a staff reporter at two daily newspapers. He earned a bachelor’s degree at Illinois State University and an MBA at William Paterson University.