HSBC Advance Review

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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:

Published or Updated: February 16, 2013
About Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

Comments

  1. Erik says:

    Check out the best rates on short term deposits at big banks versus those at select community banks from CheckingFinder.com. Community banks continue to offer higher yields on short term deposits to serve as economic engines.

    COMMUNITY BANKS

    Florida Central Credit Union 6.01 FL
    First Robinson Savings Bank 6.01 IL
    Union State Bank/Bank of Atchison 6.01 KS
    Communications Federal Credit Union 5.25 OK
    Connexus Credit Union 5.15 WI
    Keystone Bank 5.15 AL
    First New England Federal Credit Union 5.15 CT
    Three Rivers FCU 5.01 IN
    Legence Bank 5.01 IL
    Community Bank of Pleasant Hill 5.01 MO
    Community Bank of Raymore 5.01 MO
    United Heritage Credit Union 5.01 TX

    MEGA BANKS

    • ING decreased their highest rate offered by 25 basis points, from a 2.50% APY on a 1 year CD to a 2.25% APY on a 4 year CD.
    • Schwab decreased their 18 month CD rate by 15 basis points, from a 2.65% to 2.50% APY.
    • E*Trade decreased their 5 year CD rate by 30 basis points, from a 1.70% to 1.40% APY.
    • E-Loan increased their 6 year CD rate by 50 basis points, from a 3.50% to 3.70% APY
    • Washington Mutual decreased their 5 year CD rate by 50 basis points, from a 3.00% to 2.50% APY.
    • AARP Financial Savings Center decreased their savings rate by 50 basis points, from a 2.00% to 1.50% APY.
    • Wachovia increased their 17 month CD rate by 15 basis points, from a 1.85% to 2.00% APY.
    • E-Loan currently has the highest rate at 3.70% APY on a 6 year CD.
    • E*Trade currently has the highest savings rate at 3.01% APY.

    Courtesy of BancVue.

  2. Monevator says:

    For a sliver of extra comfort, it’s worth noting that HSBC does a large proportion of its business in Asia, so it’s even less likely to go bust and threaten your savings. It does have some sub-prime exposure via a US acquisition of a few years ago, but it was one of the first banks to warn of these problems.

    Might once have seemed paranoid to worry about bank stability when choosing a bank account, but not any more I’d suggest…

  3. Jayschiffer says:

    BEWARE HSBC ONLINE CD’s!!!!!!!!Hsbc has an online form that you use to sign up for a choice of CD’s. You check off the length and the rate as part of the form. The funds I used were from an existing online account through them. Just to make sure the rate was secure even though the form listed it I call twice with various questions and was assured that the rate was what I checked off on the form. The next day I checked and they had given me a lower rate and could really care less. Two weaks later and three long phone conversation with a few people half way around the world and still no call back. What a joke and very decieving. My account is pretty darn big too. Cant believe it!!!!!!! Dont get involve. Even my online savings had some issues.

  4. gentlekat says:

    Not sure what this bank is like in their brick and mortar buildings, but their on line banking experience is without question the worst banking experience I have EVER had with a bank. I saved 43K with this bank that i put there in case of emergency. Well I had an emergency and they froze my accounts. They said they would be unfrozen within 2 days. It took 6 , but they suspended my local bank so that I could not transfer any money anywhere. After 5 phone calls, and over 4 hours on the phone (yes, my phone counts the minutes), I still don’t have access to my money. I am on hold now waiting for over an hour hoping that I can get my local bank account restored so that I can transfer MY MONEY out of HSBC. The measly interest rate they pay is not worth all the hassle and even if it was up to the over three percent that it was when I opened the account I still would not do business with them. As soon as I get this straightened out I WILL NEVER DO BUSINESS WITH THEM AGAIN.

    • hbanquer says:

      I had to fly back to Singapore to close my account despite having a bank guaranteed signature sent to them to verify my signature ($100 plus courier charges. My wife is even Singaporean and we had to go back to withdraw our money in a savings account. They ignored all registered mail correspondence though they signed for it and phone calls went un returned or even answers when we got people on the line it took a major scene in the bank to get the account closed and our money despite passports. Swire the owner of HSBC is even more arrogant. They and BP should not be allowed to operate in the USA. They feel money laundering is OK. Most arrogant Bris still see the USA or any place but the UK as colonies and treat non Brits like inferior humans.
      The British empire is long dead go hoe to your drab and gray island please.

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