Banking 
10
comments

Is HSBC Direct Killing Their Online Savings Account?

Email  Print Print  

Ok ok, that title is a little sensational. They’re not ending their online savings account, they’re implementing a fee that is guaranteed to get all account holders scrambling for the exits and closing their HSBC Direct accounts. Here’s an email that account holders recently received, courtesy of Fatwallet and with the pertinent fee bolded (I bolded it):

Dear XXXXXXXXXXX,

Thank you for saving your money with HSBC Bank USA, N.A. We want to let you know that as of September 23, 2012, your Online Savings Account will be renamed to HSBC Advance Online Savings.

Your account number will remain the same and you will be able to use the account without any disruption in service.

The following account fees will change as of September 23, 2012:

Funds Transfer-In, per incoming transfer – $12 each (the transfer of funds from another person’s account, or another financial institution to your HSBC account)
Foreign Currency Draft (DD Commission) – $25 each* (official bank check purchased in another currency)
US Dollar Draft- DFT (Commission USD) – $10 each* (official bank check)

If you have any questions, click here for more details or contact our Customer Relationship Center at 800.975.4722. If you are calling from outside the continental United States, you may call us collect at 716.841.7212.

Thank you again for being an HSBC customer.

Sincerely,

Eesh Bansal
Eesh Bansal
EVP and Head of Customer Experience
HSBC Bank USA, N.A.

At first, the reaction was swift… outrage at HSBC charging for transfers into your account. They later clarified that this was for incoming wire transfers, not ACH or other similar transactions.

But it begs the question… is that next? There are plenty of online banks out there, some with even better rates.

{ 10 comments, please add your thoughts now! }

Related Posts


RSS Subscribe Like this article? Get all the latest articles sent to your email for free every day. Enter your email address and click "Subscribe." Your email will only be used for this daily subscription and you can unsubscribe anytime.

10 Responses to “Is HSBC Direct Killing Their Online Savings Account?”

  1. Cap says:

    I’ve since switched to Discover, but when I got that email from HSBC and I quickly skim through it, I immediately thought the $12 in transfer-in must have been some mistake somewhere as I couldn’t see how people will continue to use the account when they have to PAY to put money in.

    Wire transfer makes more sense. Still, incoming wire transfer will cost you money? That’s a little bit wack. You’re probably already paying the wire cost when you do an outbound somewhere else… I’m surprise there’s no exempt for over X dollars.

  2. Scott says:

    On a different HSBC gripe, I thought the new card laws were supposed to force banks to itemize foreign currency charges separate from actual payment amounts? Maybe not for ATM withdrawals though. On a long trip abroad that we just returned from, our BofA card itemized all foreign currency transaction fees but our HSBC card did not at all (just one line item, leaving you guessing what fees they added in), which seems pretty sheisty nowadays.

  3. knotReally says:

    Jim, i was about to close my account due to this but may delay doing so. Thanks for the clarification. However, the “killing” part should be the fact that they keep lowering their interest rate. i believe its down to .5 or .4%. At that rate, it’s not worth the 3-day transfer rate.
    For the cherry on top, they dont even have an app. Even grocery stores have apps!
    btw, i think you misspelled “exists”.

  4. JRB says:

    I transferred all my funds except $1 and will be closing the account. I assumed the fee was for ACH and as HSBC has not sent me a clarification email I will continue with me decision and the lowering of the interest is another reason to bail

  5. Judy J says:

    The following account fees will change as of September 23, 2012:

    Funds Transfer-In, per incoming transfer – $12 each (the transfer of funds from another person’s account, or another financial institution to your HSBC account)
    Foreign Currency Draft (DD Commission) – $25 each* (official bank check purchased in another currency)
    US Dollar Draft- DFT (Commission USD) – $10 each* (official bank check)

    I think this clearly states they will be charging $12 per “incoming transfer from another person’s account or another financial institution to your HSBC account.” I transfer money automatically from my credit union to the online savings account. I believe the $12 fee would apply if I understand the email correctly.

  6. Rob says:

    With their interest rates dropping on a steady basis and now the fees being hiked up no wonder everyone is looking for the exits. The advantage of the account WAS that it was online, low to no fees and a great rate. At least its still online haha

  7. Jim T says:

    Today, I phoned HSBC Customer Service regarding the “Funds Transfer-In, per incoming transfer – $12 each (the transfer of funds from another person’s account, or another financial institution to your HSBC account)”. I spoke with April and she said that Bank-to-Bank Transfers are still at no charge. The $12 fee only applies to transfers from another person’s account.

  8. Anonymous says:

    who would want to do business with a bank that shafts the customers…let’s look into who really owns this bank…it’s definitely not an American investor nor England nor Hong Kong…take a look…and you won’t believe who bought off all the bad loans for pennies on the dollar….what will American dollars be funding now?..our own demise….or have we been all along? Americans need to take a strong stand here….


Please Leave a Reply
Bargaineering Comment Policy


Previous Article: «
Next Article: »
Advertising Disclosure: Bargaineering may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.
About | Contact Me | Privacy Policy/Your California Privacy Rights | Terms of Use | Press
Copyright © 2014 by www.Bargaineering.com. All rights reserved.