If you are looking for an established full-service bank that offering digital banking services, then, this HSBC online banking review is for you.
While traditional banking is still far from being off the market, digital banking has definitely changed the way people bank.
In fact, according to an article published by Business Insider, it says that convenience and quickness are two of the primary reasons that make digital banking attractive to consumers.
It is not surprising though because digital banking has absolutely made things so much easier. In just a few clicks, you get to send money to a loved one, pay for a purchase, deposit a check, as well as manage your finances. Needless to say, you get to access your account whenever and wherever you want.
Digital banking provides so many things that traditional banking does not. Agree?
Now, with the advent of technology as well as digital banks, traditional banks like HSBC had to cope up. They had to ensure they get to provide their customers the same convenience and ease that digital banks provide. Thus, the birth of online banking.
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According to Investopedia, online banking, also known as Internet or web banking, allows users to conduct financial transactions via the Internet.
Basically, consumers get to do whatever they want with their money without having to go to a bank branch location.
Online banking services vary from one bank to another. Generally, though, online banking allows customers to do almost every service done traditionally like deposits, transfers, bill payments, as well as paying for online purchases.
Online banking may be accessible through a desktop computer or a smartphone or both.
Now, as mentioned, the majority (if not all) of traditional banks now offer online banking services – including HSBC.
Having said that, this in-depth review on HSBC online banking will provide you the essential information you need to know to see how it fares from other online banking services out there.
In particular, we are going to tackle the following items:
- What is HSBC?
- Who is HSBC best for?
- What does HSBC offer?
- How does HSBC online banking work?
- Are there fees involved?
- How to open an account with HSBC?
- Is HSBC online banking safe?
- What are the upsides of HSBC?
- What are the downsides of HSBC?
WHAT IS HSBC?
Formerly known as Hongkong and Shanghai Banking Corporation, HSBC is one of the largest international banking and financial services organizations out there. It has been in the banking industry since 1865.
The bank is present across 66 countries and territories. In the United States alone, HSBC has more than 160 branches in eight states namely: California, Florida, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington, plus Washington, D.C.
Generally, HSBC is a full-service bank like any other brick-and-mortar bank. It offers a variety of products and services that will surely benefit the public.
Get to know HSBC more in this video below by Alux.com:
Although the bank does only have limited physical branch locations in the country, people living outside the above-mentioned states can still avail and open an account with the bank through HSBC Direct.
HSBC online banking is available for HSBC brick-and-mortar clients as well.
Customers can take advantage of the bank’s checking and savings accounts, loans, as well as credit cards, and a lot more.
WHO IS HSBC BEST FOR?
HSBC is a full-service international bank that offers online banking services through HSBC Direct.
Generally, the bank should appeal to those who want to bank with a well-known banking institution, at the same time, interested in lending and investment options through the same bank.
The bank is also an ideal choice for those who want to bank with an established institution and wants to take advantage of its online banking services.
Generally, HSBC is a good option if you want to carry high balances and earn a modest annual percentage yield (APY) on your money.
With HSBC Direct, however, you get to earn competitive rates on the Direct Savings option.
Additionally, HSBC online banking has low opening deposit requirements, which makes it ideal for those who want to start saving up with a limited budget to start off.
HSBC Direct does not charge ATM fees, which makes it a good choice for those who want to get away with that.
WHAT DOES HSBC OFFER?
As mentioned, HSBC is a full-service bank that offers both personal and business financial products and services.
The bank offers checking, savings, certificates of deposit (CDs), credit cards, loans, mortgages, as well as insurance and retirement products.
For the purpose of this review, however, we are going to focus on personal deposits, which include:
- Checking Accounts
- Savings Account
- Certificate of Deposit
Checking Accounts
HSBC online banking offers four different types of checking accounts. You can choose from the following:
HSBC Premier Checking
This checking account is available to open online.
This pays an annual percentage yield (APY) of 0.01%, which is not that much, however, it’s on par with comparative accounts at the biggest banks out there.
For the HSBC Premier checking account, account holders must maintain a balance of at least $75,000 or at least $5,000 direct deposits every month to avoid the very steep $50 monthly fee.
In addition, the fee can also be avoided by having an HSBC residential mortgage loan of $500,000 or more.
At the moment, the HSBC Premier Checking account is offering a bonus. All eligible new customers get a $450 Welcome Deposit for opening a new account through its online platform, at the same time, for completing qualifying activities.
HSBC Premier Checking offers unlimited out-of-network ATM reimbursements in the country.
HSBC Advance Checking
For this checking account, account holders must maintain $5,000 in combined U.S. Dollar personal deposit accounts and investment balances or a monthly recurring direct deposit from a third party to an HSBC Advance checking account or an HSBC U.S. residential mortgage loan to avoid the $25 monthly fee.
The HSBC Advance checking account comes with unique features including free checks, an option to apply for credit as well as up to four rebates per month on non-HSBC ATM charges (except for New York).
HSBC Choice Checking
For this particular checking account type, the $15 monthly fee can be waived if you meet any of the following requirements:
Recurring qualifying direct deposits to your Choice Checking account at least once per calendar month
$1,500 minimum balance in combined balances in U.S. Dollar personal deposit accounts and investment
Account-holders get access to HSBC ATMs worldwide, mostly with no withdrawal fees. It also offers optional overdraft protection.
This account comes with a debit MasterCard card with no annual or monthly service fees.
HSBC Basic Banking
The Basic Banking checking account has no minimum balance requirement.
It is important to know, however, that the account will incur $3 per month regardless of your account balance.
Additionally, while the first eight checks are free, the ones after that will cost $0.35 per check.
Similarly, it does have optional overdraft protection.
An HSBC debit MasterCard card also comes with it with no transaction fees on domestic purchases as well as monthly or annual service fees.
Meanwhile, HSBC Direct offers below checking account:
HSBC Direct Checking
HSBC Direct Checking account pays 0.01% APY. While it may be small, it still is appealing knowing that many checking accounts out there do not earn interest at all.
Unlike, other HSBC checking accounts, this one does not have monthly fees. Also, it only requires at least a $1 opening deposit.
Unfortunately, the account does not offer paper checks. All transactions are made via debit card.
Savings Accounts
HSBC offers four different types of savings account. These are:
HSBC Direct Savings
Direct savings is part of HSBC Direct. It is a high-yield savings account that currently pays an APY of 0.50%.
For this account type, HSBC does not charge a monthly maintenance fee. In addition, the bank only requires at least $1 to open an account.
This account is ideal if you are building your emergency fund or saving up for other financial goals.
HSBC Everyday Savings
True to its name, the Everyday Savings account is a basic savings account that earns minimal interest, currently at 0.01% APY.
Account-holders are free from fees. Additionally, this account allows customers to set up automatic transfers to help maximize savings over time.
HSBC Advance Savings
The Advance Savings account is ideal for customers who are looking for more interest-earning potential.
Advance Savings accounts earn 0.05% annually for balances of at least $15,000, while 0.01% APY for balances below that amount.
To open an Advance Savings account, you must open or have an Advance Checking account. At the same time, must meet the qualifying requirements for that account.
The Advance Savings account has no monthly maintenance fees, and it also allows automatic transfers between savings and checking accounts.
HSBC Premier Savings
If you want to earn tiered interest of up to 0.15% APY, then the Premier Savings account is perfect for you.
This account specifically comes with access to personal internet banking with complimentary bill pay services.
To open a Premier Savings account, you must have a new or existing Premier Checking account as well. In addition, customers must also meet the eligibility requirements associated with their Premier checking account.
Certificate of Deposit
Both HSBC Direct and HSBC Bank offers CD account option. Both are actually nearly identical.
Both CDs come with three-term options — 6 months, 12 months, or 24 months. The APY varies depending on the term selected. For 6 months, the APY is 0.60% while for both 12 and 24 months, it’s 0.70%.
Furthermore, depending on the terms, the interest for both Direct CDs and Online CDs may be credited and paid monthly, quarterly, semi-annually, annually, or at maturity.
To open an HSBC CD account, a minimum $1,000 deposit is required.
Meanwhile, similar to any other CD accounts, early withdrawals come with penalties. The penalties are as follows:
- Terms of 369 days or less – 30 days’ simple interest
- Terms between 370 and 733 days – 90 days’ simple interest
- Terms of 734 days or greater – 180 days’ simple interest
Take note that HSBC Direct products mentioned in this review are accessible online only.
HOW DOES HSBC ONLINE BANKING WORK?
HSBC as well as HSBC Direct customers have different ways to access their bank accounts.
With the bank’s Personal Internet Banking, HSBC customers can view their accounts and balances.
Additionally, it comes with features such as viewing account information, transferring funds, as well as paying bills.
HSBC also offers mobile banking, which is available for both iOS and Android devices.
HSBC mobile app comes with the same features offered by its Personal Internet Banking plus mobile check deposits, as well as the ability to send secure messages to customer service.
Specifically for Android users, they may access the app with a Fingerprint ID. As for Apple users, they can utilize Touch ID as well as Face ID for added security.
ARE THERE FEES INVOLVED?
As mentioned in the earlier section, HSBC charges monthly fees in the majority of its account types. However, these fees can be waived if you meet certain requirements. Meanwhile, HSBC Direct products are free of monthly charges.
Additionally, the bank overs overdraft protection to avoid overdraft fees.
Access to the bank’s online personal banking platform and mobile application are both free of charge.
HOW TO OPEN AN ACCOUNT WITH HSBC?
At this point of our HSBC online banking review, we are going to talk about how to actually start banking with HSBC.
First of all, you must adhere to the following requirements:
- You must be 18 years of age and have a Social Security Number
- Current U.S. residential address and a U.S. residential address for the past two years
- Valid U.S. ID (driver’s license, non-driver identification card, learner permit), passport, or Permanent Residential Card/Green Card
- Account information for funding your new account
To open a regular HSBC checking, savings, or CD account, you may visit the bank’s website and simply choose the product your want to open.
Meanwhile, for HSBC Direct Checking or Savings account, you may go to HSBC Direct website.
Like any other banks out there, be ready to provide your personal information to complete the whole account application process.
IS HSBC ONLINE BANKING SAFE?
HSBC is one of the well-known international banks for no reason. It has been in the banking industry for years. Thus, when it comes to the security and safety of your personal data and your money, you are assured that everything is well taken care of.
Whether it be the HSBC website, HSBC Direct website, or the bank’s mobile app, security and safety of customer data is a top priority.
In fact, specifically for the HSBC mobile app, as mentioned earlier, Android users may access it with a Fingerprint ID. Apple users may likewise utilize Touch ID as well as Face ID for added security.
As for your money, HSBC is a member of the Federal Deposit Insurance Corporation (FDIC), which means all deposits are insured up to $250,000 per depositor, per account category, in case of a bank failure.
WHAT ARE THE UPSIDES OF HSBC?
In this part of our HSBC online banking review, we give you some of the benefits of banking with HSBC. This includes:
- Competitive Yield for Online Savings Accounts – HSBC offers fairly competitive rates for its savings accounts. This allows customers to save, at the same time, grow their money.
- International Presence – HSBC is an established bank. The fact that it has an international presence, customers get to enjoy some exclusive perks.
- Mobile Check Deposit – Mobile check deposit is supported by HSBC mobile app.
- Monthly Maintenance Fees Can Be Waived – HSBC may be charging monthly fees, but they’re waivable for as long as customers meet certain requirements.
- No Monthly Fees for HSBC Direct Accounts – If you choose to open an account to the online division of the bank, HSBC Direct, you get to enjoy a no monthly fee benefit.
WHAT ARE THE DOWNSIDES OF HSBC?
While it has its share of pros, banking with HSBC also has some downside, and it includes the following:
- No Check-Writing Privileges for HSBC Direct Checking Accounts – HSBC Direct is entirely online, thus, it does not have check-writing privileges as a typical checking account provides.
- Limited Local Bank Branches – Unfortunately, HSBC has limited bank branches in the U.S. Its 160 branches are only present in eight states, which include California, Florida, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington, plus Washington, D.C
- Monthly Fees for HSBC Accounts – Except for accounts under HSBC Direct, everything else charges monthly fees. However, these can be waived if you meet the requirements.
FINAL THOUGHTS ABOUT HSBC ONLINE BANKING
HSBC is a well-known and well-established international bank that offers online and mobile banking.
It does offer a wide selection of products and services including personal deposit accounts such as checking, savings, and certificate of deposit accounts.
If you are looking for a dependable and trustworthy bank, HSBC is definitely a good choice. However, when it comes to rates, while some products offer competitive rates, others are kind of low compared to other similar products offered by other banks.
With that said, do you think HSBC is the right one for you?