HSBC Direct Savings Account: High APY, $1 Opening Deposit and No Fees

This online bank offers one of the most competitive APYs on the market.

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It’s not just money market accounts that offer elevated interest earnings. The best high-yield savings accounts also help people earn above average average percentage yields (APY) on savings. If you’re looking for a savings account that offers a higher interest rate and an extra incentive, the HSBC Direct Savings account might be right for you. Not only does it offer a competitive APY, HSBC Direct Savings requires no minimum monthly balance or maintenance fees and you can open an account with as little as $1.

Slick Tip: Several online banks have been known to offer a higher APY than HSBC including Axos Bank, UFB Direct and CIT Bank.

What Is an HSBC Direct Savings Account?

Touted as “a smarter way to save,” the online-only HSBC Direct Savings account lets you take advantage of one of the highest savings rates around with a 0.50% APY on all balance tiers.

HSBC Direct Savings accounts also include the following:

  • No monthly maintenance fees
  • $1 minimum balance to earn APY
  • Monthly compounding period
  • Mobile check deposits
  • Online transfers
  • eStatements
  • 24/7 online and mobile banking
  • Live chat assistance
  • Automated telephone banking
  • Member FDIC

HSBC Eligibility Requirements?

To apply online, you’ll need to meet the following criteria:

  • Be 18 years of age or older
  • Have a Social Security number
  • Have a current U.S. residential address and a U.S. residential address for the past three years
  • Possess a valid U.S. ID (driver’s license, non-driver identification card, learner permit), passport or Permanent Residential Card/Green Card

Additionally, you’ll need to have your current account information available to fund your new HSBC savings account.

If you do decide to open an HSBC Direct Savings account, you’ll want to leave your money untouched for a full six months. Otherwise, you’ll be charged a $25 fee.

HSBC Direct Savings Bonus and Promotions

There is currently no HSBC bonus offered for Direct Savings. Although, Slickdeals often offers a $125 HSBC bonus.

HSBC Direct Features

Note: Average percentage yields (APY) can fluctuate as financial institutions adjust their rates to the market. It’s one of the primary reasons to shop around for the savings account that best helps you reach your financial goals. Always check the current APY before opening an account.

The HSBC Direct Savings Account 0.50% APY is 18 times better than the national average.

With the HSBC Direct Savings Account, there are no hidden fees; the monthly maintenance fee is $0. Many other banks charge customers monthly maintenance fees or they’ll sneak in fees if customers don’t have a monthly minimum in their accounts.

Since your account is FDIC insured, you will be covered for up to a $250,000 deposit in case anything happens to your money (i.e. another recession or depression occurs). Anything past $250,000 will not be covered. If you do have more than $250,000, then ask HSBC if you could open a secondary HSBC Direct Savings Account and still be insured.

You’ll be able to manage your account online or on your mobile phone 24/7. There’s also live chat assistance and automated telephone banking, so you don’t always need a banker to help you out.

Every quarter, you can see your e-statement to keep track of your deposits, withdrawals and interest gained.

Note that this account is only for consumers and not for businesses.

Deposit Options

You need to deposit at least $1 to get started with the HSBC Direct Savings Account. It’s an online only product, which means that if you go to a branch in person, you’d need to set it up at one of their computer self-serve accounts, and not with a banker.

You can always access your account through Personal Internet Banking, e-statements and automated telephone banking. To get started, you would simply log onto HSBC’s website, open an account and deposit at least $1.

The maximum daily online limit when funding your account or making additional daily deposits with an electronic transfer from or to another financial institution is $350,000. ATM/debit cards are not available for deposits.

Withdrawal Options

When you want to make a withdrawal, you can log onto mobile or online banking. There is no excess withdrawal fee, but the maximum daily online limit is the same as a deposit: $350,000. ATM/debit cards are not available for withdrawals.

HSBC Direct Savings Fees

If you close your account within 180 days of opening, there will be a $25 fee taken out. A balance verification letter is $20 and $5 for each additional copy. Chargeback – which is each check or other item that you deposit that returns to HSBC unpaid – will result in a $10 fee.

For every court order, levy, restraining notice or other legal paper that requires HSBC to put a hold on your account or pay money from your account to another party, you’ll pay a $100 fee. Each incoming wire transfer costs $15, while each U.S. dollar draft or cashier’s check purchased in U.S. dollars will cost you a $12 fee.

HSBC Direct Savings APY

According to HSBC, your interest rate and APY could change at their discretion at any time. The APY is based on principal and interest left on a deposit for a full 365-day year, with interest that is compounded at the same interest rate. Withdrawal of interest will lead to a lower APY. Essentially, if you deposit your money and leave it untouched for 365 days, you should be able to nab that 0.50% APY – as long as HSBC doesn’t decide to change its terms.

HSBC Direct Savings Reviews

The Ascent named HSBC Direct Savings Account one of the best savings accounts for 2020. Other sites – like NerdWallet, BankRate and Hustler Money Blog – also gave the savings account high ratings.

About HSBC Bank

HSBC is one of the largest banks and financial service organizations in the world, with more than 40 million global customers in 64 territories and countries. The company was started in 1865 in Hong Kong, where it invested in trade between Asia and Europe.

The bank’s name comes from its founding member, The Hong Kong and Shanghai Banking Corporation Limited. In the U.S., HSBC has branches and offices in cities like Los Angeles, New York, Seattle, Miami, San Francisco, Chicago and Washington, D.C.

Why Have a Savings Account?

An interest-bearing savings account is a low-risk way to start gaining interest on your money. While the stock market or mutual funds may offer higher interest rates, they are much riskier, and you can lose a lot of money if you don’t know what you’re doing or the market is volatile.

As long as you deposit less than the FDIC-insured limit, then you’re going to be covered, while still gaining valuable interest on your account and having your money work for you.

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Ryan Tronier

Ryan Tronier is a personal finance editor and writer. He has worked in journalism and publishing for nearly two decades before becoming Slickdeals' Personal Finance and Credit Card Editor. Ryan's work has appeared in publications like USA TODAY, NBC News, Sapling and Techwalla. Find him online at

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