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- Most flexible online banking Bank of America *Est. $0
- Best online checking account Schwab Bank High Yield Investor Checking *Est. $0
- Best online savings account FNBO Bank *Est. $0
- Online savings for special occasions, events SmartyPig *Est. $0
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- Interest on bill-paying account
- Good customer service
- No paper checks available
- Only a two-star rating for stability
- Middle of the pack for customer service
- Not the easiest interface
HSBC Direct is an Internet bank, but you can also conduct business at HSBC Bank, which does have branches in several states. Gone are the days when HSBC Direct ranked around the top for its return on online savings; reviews now position it more in the middle of the pack. Terms are good: You can open a savings account with only $1, and there's no minimum balance. Three ATM fees (from non-HSBC ATMs) are reimbursed each month. A free online bill-payment account is also available, with quick transfers between that and savings. For a savings account that gets higher ratings from reviewers, experts recommend FNBO Direct.
HSBC Bank is included in the most recent customer-service ratings at Keynote Systems, Inc., the most detailed and recent ratings we found. BankRate.com includes the parent bank of HSBC Direct in its Safe and Sound bank ratings. We found older reviews of Internet banks at CNNMoney.com and Kiplinger.com, plus even earlier comparison rankings at Forbes.com. Two blogs include HSBC Direct in their reviews of the best Internet banks; GetRichSlowly.org is constantly updated. Bargaineering.com isn't quite as current, but it's based on personal testing.
Our Sources
HSBC ranks toward the bottom among the 26 banks rated here for customer satisfaction, though it ranks in the middle of the pack for more specific tasks and factors.
Review: Keynote Scorecards for Financial Services/Banks, Editors of Keynote Systems, Inc., March 4, 2009
2. Bankrate.com
HSBC Bank USA earns a three-star rating out of five here for banking stability.
Review: HSBC Bank USA, National Association, Editors of BankRate.com, Dec. 2008
3. CNNMoney.com
Rated one of Money's top three online banks in 2007, HSBC Direct gets points for paying interest on its bills-paying account.
Review: HSBC Direct, Carolyn Bigda, Aug. 3, 2007
4. Kiplinger.comDetails/Subscribe
This 2007 review names HSBC Direct as the best overall online savings account, praising its customer service, ATM card, easy terms and high savings return. A December 2008 review of Internet banks at Kiplinger.com picks FNBO Direct as the current favorite.
Review: The Best Cyberbanks, Thomas M. Anderson, Feb. 2007
Forbes offers some short editorial reviews that unfortunately don't bear any dates. HSBC isn't particularly recommended. Editors say there's "probably no compelling reason to leave your existing bank to come here."
Review: Forbes Best of the Web: Banking, Jeanhee Kim
This review, from a site named "the most inspiring money blog" by Money magazine in April 2008, recommends HSBC Direct as one of the top three banks for online savings. This is based partly on features and rates, partly on users' assessments of "excellent customer service, great rates, and a good user interface."
Review: Which Online High-Yield Savings Account is Best?, J. D. Roth, April 5, 2009
Reviewing Internet banks, blogger Jim Wang ranks HSBC Direct fourth, noting that its interest rate is no longer the most competitive, and that it's not quite as easy to use as ING Direct.
Review: Top Five Online Banks: Savings Or Checking Accounts, Jim Wang, Apr. 25, 2008
About two dozen users give HSBC Direct mixed reviews here, with some complaints about poor customer service and slow electronic transfers -- though some users are very happy with both.
Review: HSBC Direct Online Savings -- Reader Reviews, Contributors to eMoneyCentral.com
Online Banking Runners Up:
5 picks by top review sites.
4 picks including: Bankrate.com, Forbes…
4 picks by top review sites.