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HSBC Direct Bank Review 2022

Published January 2022 by Matthew Goldberg

AT A GLANCE
4.1

Bankrate Score

bank-logo

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 decent yields on short-term CDs.

  • Savings
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    3.3
  • Checking
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    4.7
  • CDs
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    3.8
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    LendingClub

    Member FDIC

    Savings account

    1.26 % APY

    $ 0

    Min. balance for APY

    My Banking Direct, a service of NY Community Bank

    Member FDIC

    Savings account

    1.25 % APY

    $ 1

    Min. balance for APY

    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    1.20 % APY

    $ 0

    Min. balance for APY

    Overall

    4.1

    Bankrate Score

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

    HSBC Direct CDs offer decent APYs, and its checking account doesn’t charge a monthly maintenance fee.

    What we like

    • The checking account doesn’t charge a monthly maintenance fee.

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

    • The HSBC app receives high ratings from iOS and Android device users.

    What we don't

    • The APY on its savings account is not competitive compared with some other online banks.

    • HSBC Direct offers only three CD terms.

    • The checking APY is the same for all balance tiers.

    Savings accounts

    3.3

    Bankrate Score

    OTHER SAVINGS OFFERS YOU MAY LIKE
    LendingClub

    Member FDIC

    Savings account

    1.26 % 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 still higher than the national average, but savers searching for a high-yield account will want to shop around for 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 above the national average, but it's easy to find higher rates at some other online banks.

    Checking accounts

    4.7

    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 pays a little bit of interest, but doesn’t offer paper checks. An account can be opened online with as little as $1 and there is no monthly minimum balance requirement.

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

    What we like

    • The HSBC Direct Checking has no monthly maintenance fee.

    • Only $1 is needed 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

    OTHER CD OFFERS YOU MAY LIKE
    Capital One

    Member FDIC

    CD

    2.50 % APY

    18mo

    Term

    $ 0

    Min. deposit

    HSBC Direct offers three standard CD terms of six months, and one and two years, providing options for savers with shorter-term goals. Savers with long-term goals will have to look elsewhere. 

    All three CDs pay a decent APY, but some other online banks offer higher yields. HSBC Direct CDs require only $1,000 to open. The bank doesn’t offer any specialty CDs, such as a bump-up or no-penalty CDs.

    What we like

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

    What we don't

    • The bank doesn’t offer any specialty CDs.

    • No long-term CDs are offered.

    Bank experience

    HSBC Direct personal banking customers can call a bank representative  seven days a week from 7 a.m. to midnight Eastern time. HSBC Mobile Banking app customers can chat using a mobile device. Customers without the mobile app can get in touch using Web Chat using a desktop or laptop computer, and Apple device users who don't have the HSBC Mobile Banking app can use Apple Business Chat.

    Banking customers can also take advantage of HSBC Direct’s money management tools, for help with budgeting and creating savings goals. Non-HSBC accounts can be linked, allowing users to see their entire financial picture in one place.

    About HSBC Direct

    HSBC Direct accounts are through HSBC Bank USA and are offered online in all 50 states. HSBC Direct offers a checking account, three terms of certificates of deposit and a savings account.

    Big changes are afoot for HSBC Direct, however, as HSBC Bank USA plans to shed its national online deposit business to focus on globally connected high-net-worth individuals. HSBC Direct will be acquired by Citizens Access, the digital, online-only division of Citizens Bank, and its customers will become customers of Citizens Access. The acquisition is expected to close in the first quarter of 2022.

    Matthew Goldberg Twitter Created with Sketch. @MATTATBANKRATE

    Matthew Goldberg Twitter Created with Sketch. @MATTATBANKRATE

    Matthew Goldberg is a consumer banking reporter at Bankrate. He uses his banking and financial services experience to help readers with personal finance. Nearly his entire career has either been as a reporter or working in financial services, in banking and insurance. He’s been in financial services for more than a decade. His banking career includes being a banker in New York City. His reporting career includes working as a staff reporter at two daily newspapers. He earned his first newspaper bylines in 1998. His writing has been honored by both the Illinois Associated Press Editors Association and the Illinois Press Association. His writing has also been featured online on MSN, the Miami Herald, the Houston Chronicle, the Omaha World-Herald, The Kansas City Star, the Arizona Daily Star, and appeared in Sports Illustrated On Campus, The Atlanta Journal-Constitution, The Buffalo News and other publications. Matthew’s radio experience includes being a weekly panelist on the SportsWriter’s show on WGEM AM ESPN 1440 in Quincy, Illinois. He was also an occasional co-host and call-in guest on WGEM SportsCenter. He’s also been a guest on other stations throughout the country. Matthew is currently a member of the Board of Governors at the Society for Advancing Business Editing and Writing (SABEW), which is the world's largest and oldest organization of business and financial journalists. He chairs the organization's training committee and is on the finance committee. He has previously served on conference planning committees and has been a Best in Business contest judge for the organization. Matthew earned a bachelor’s degree at Illinois State University and an MBA at William Paterson University. Media mentions CNBC CNBC Acorns + CNBC WGN Radio 720 in Chicago 1080 KRLD Dallas-Fort Worth