Why Online Banking with HSBC Direct?
A publication dated February 2007 by Kiplinger's Personal Finance magazine rated HSBC Direct (www.hsbcdirect.com) as the best overall online savings account. Among other things that are taken into consideration for this recognition are low $1 minimum balance, quick customer service, an ATM card and a much higher Annual Percentage Yield (APR) typically associated with online banks.
If case you are clueless about what online banks is all about, these are internet based banks that do not have brick and mortar outlets like conventional banks, and they're generally not the same as your local bank with internet banking facilities. As mentioned above, the most attractive aspect of an online bank is its outstandingly high interest rates compared to normal banks, regardless of whether you have a savings account, money market account, checking or Certificate of Deposit (CD). For example, at the time this article was written, HSBC Direct is offering a 3.25% APY for savings account while HSBC regular savings account only yield a pathetic 0.10% a year. If you think this is high, HSBC Direct has been offering up to 5.05% APR during better times. Combine this with its low minimum balance to obtain APY of only $0.01 as compared to $100 for regular savings account, and we've got a winner hands down.
Why the big difference? The public is more savvy about money and are getting smarter about interest rates. When the paltry 0.10% APR stops bringing in savings, bankers are forced to offer higher interest rates to lure savers. Since online banking runs itself and require minimal maintenance, banks can justify the high interest rates paid out from the huge savings they gain from not needing to employ staffs, run bank branches and renovate their outlets. This is the reason why HSBC Direct is boasting its as high as 8 times national savings average' APR.
Rest assure that your money in HSBC Direct, like any other normal savings account, are completely secured and protected by the Federal Deposit Insurance Company (FDIC). Apart from that, user stand to enjoy the same kind of service that comes together with a normal savings account such as 24 hours customer care support and strong security features.
Perhaps the second most valuable element offered by HSBC Direct is the convenience to withdraw funds from any HSBC outlets in the U.S using an ATM card that doubles up as a debit card. This is not a normal feature associated with the average online banks savings account, and where it is absent, withdrawing and depositing funds can take time.
For total convenience, you can even switch all your banking needs to HSBC Direct since it is a full fledge bank with a wide range of service, including online bills payment, online funds transfer, online statement, checking account and investment account. Anyone who use an online banking facility by normal banks are already familiar with this kind of banking anyway. If you do not want the hassle of switching your usual banking faclities to an online bank, simply link your normal account to HSBC Direct to enjoy smoother transition of your money as well as enjoying higher returns for your cash in hand.
Give HSBC Direct a try!
Originally posted 2008-10-13 10:41:06.
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