HSBC Advance is part of HSBC Bank USA, N.A., which has close to 450 branches in the U.S., and HSBC Group, with more than 10,000 offices worldwide. It’s one of the largest financial companies in the world. HSBC Advance offers three products: (1) online savings accounts; (2) online payment accounts (basically a checking account); and (3) an online CD account (certificate of deposit).
HSBC Advance Online Savings Account
The online savings account at HSBC Advance is designed for those seeking an FDIC insured and convenient way to save money. With a current annual percentage yield of 1.10% and no minimum balance required, this account is one of the highest paying savings accounts available. Here are the details:
- Current APY:0.80%
- No minimum balance required
- Open an account with as little as $1
- Can link your existing checking account with an HSBC Advance online savings account
- Make deposits or withdrawals at any HSBC ATM in the U.S.
- Transfer funds online to or from your existing checking account
- FDIC-insured to the maximum permitted by law
Kiplinger’s Personal Finance magazine names HSBC Advance best overall online savings account in 2006. And in 2008, Forbes listed HSBC Holdings as the largest company in the world, taking over the top spot from Citibank.
HSBC Advance Online Payment Account
HSBC’s online payment account is an interest bearing online checking account. It currently pays an APY of 1.75%, which like its online savings product, is one of the highest yielding online checking accounts available. While you do not have to open an HSBC Advance online payment account in order to open a savings account, the yield may make it worth it. Here are some of the key account features:
- Online bill pay. Schedule one-time or recurring payments.
- Make purchases or get cash at more than 395,000 ATMs nationwide with a debit card.
- If you use a non-HSBC ATM in the U.S., HSBC will reimburse the first 3 ATM surcharge/convenience fees each month
- Transfer money to your Online Savings account to earn more, instantly.
- FDIC-insured to the maximum permitted by law.
HSBC Advance Online CD Account
Finally, HSBC Advance offers an online CD Account. The online CD account offers terms ranging from 6 months to 48 months. The APY varies depending on the term of the CD and ranges from 2.25% APY to 2.75% APY. It’s important to note that currently the highest yielding CDs are for terms ranging from 12 to 18 months. CDs for 24 months or longer are currently paying 2.50%, reflecting the uncertainty of long term interest rates. Here are the key details of HSBC’s online CD account:
- Easy online account management.
- When the CD term expires, you can let your balance roll over to another CD term, withdraw the money, or add to it.
- Your money’s FDIC-insured to the maximum permitted by law.
Note that unlike the online savings or payment accounts, your money is committed to your Online CD. If you withdraw any of your principal from your Online CD, you will incur a penalty of 30 days’ simple interest.
How to Open an HSBC Advance Account
Like most online or internet banks, HSBC Advance does not have any branches. All transactions are performed either online or at an ATM. Opening an HSBC Advance account online takes about 10 minutes. Like opening any bank account, you’ll need your social security number and driver’s license. You will also need your current checking account information if you want to link the account to your new HSBC Advance account. One very convenient feature is that you can link an external account online; there is no need to mail in a voided check.
To give you an idea of the culture and spirit of HSBC Advance, we’ll conclude this review with a YouTube video of a commercial HSBC recently ran: