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HSBC Direct Savings Account Review: Low Fees, and a Low APY

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The HSBC Direct Savings account offers an excellent combination of low fees and minimums and a user-friendly platform, but the APY doesn't keep pace with the competition. Learn more in our HSBC Direct Savings account review.

Rates as of May 27, 2022

Full HSBC Direct Savings Account review

Top perks

$1 minimum deposit: To open a new HSBC Direct Savings account, you'll need an initial deposit of just $1, which must be made from new money (not from another HSBC account).

No maintenance fee: Unlike many branch-based savings accounts, the HSBC Direct Savings account doesn't charge a monthly maintenance fee.

Mobile check deposit: You can use the HSBC mobile app to make check deposits into your account, and to move money between accounts.

FDIC insured: To be clear, this should be a feature you look for with any savings account you consider, but it's important to mention that the HSBC Direct Savings account is FDIC insured to the maximum amounts allowed by law.

Live chat: HSBC offers live chat assistance to customers, which can be a major time-saver, as opposed to waiting on hold to speak with a customer service representative.

Financial tools: Account holders can use HSBC's "Our Money Management Tools," which assist with things like budgeting, savings goals, and more.

What could be improved

Low APY: The HSBC Direct Savings account currently offers a 0.15% APY (annual percentage yield) which doesn't compete with the best interest rates offered by high-yield savings accounts.

ATM/debit card access: Unlike some other online-based savings accounts, there's no ATM card or debit card of any kind available with the HSBC Direct Savings account. This could be a major disappointment, considering how HSBC has a large network of ATMs not only in the U.S., but around the world.

Branch access: Despite the fact that HSBC has more than 200 U.S. branches, the HSBC Direct Savings account is online-only, meaning you can't walk into a branch and open a high-yield savings account. You can open a savings account in an HSBC branch, but as of this writing, the bank's other savings accounts have APYs ranging from just 0.01% to 0.15%. However, you can move money between HSBC accounts through the mobile app -- for example, if you have an HSBC checking account.

How to access your money

HSBC enables its Direct Savings customers to deposit and withdraw money from their account in the following ways.

Deposit options

There are a couple of ways to fund a HSBC Direct Savings account:

  • Electronic funds transfer
  • Transfer from another HSBC bank account
  • Mobile check deposits
  • Wire transfer

Withdrawal options

These are your choices for withdrawing funds from your HSBC Direct Savings account:

  • Transfer to another HSBC bank account
  • Electronic funds transfer
  • Wire transfer

Online savings account comparison

Because there's no such thing as a perfect savings account, if certain features are important to you, it may be a smart idea to look at some alternatives, including options that may include a higher APY.

Rates as of May 27, 2022
APY 0.15% Up to 0.55% 0.65%
Min. to earn APY $1 $25k or $100 monthly deposit for highest tier $1
Next Steps

The HSBC Direct Savings account is right for you if:

Although the HSBC Direct Savings account is missing useful features like ATM access and a high APY, it's still worth considering if you need a low minimum deposit and want simple mobile functionality.

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