HSBC Direct is Trying to Attract New Money
Tip It!I just received an e-mail from HSBC Direct describing a new promotion in which they’re paying 6.00% APY for new deposits through April 30th. Here’s the text of their e-mail:
Until April 30, your HSBC Direct Online Savings Account gives New Money 6.00% APY. So if you have money elsewhere, it’s time to move it. You’ll maximize your savings and reach your goals and dreams faster.
During the New Money promotion, deposits from outside of HSBC earn a market-leading 6.00% APY. That’s 11 times what traditional savings accounts offer. And checking accounts obviously can’t compare.
You’ll earn up to $150 in just 3 months on every $10,000 of New Money deposited. And, with compounding interest, your savings will continue to grow even after the promotion.
There’s no reason to have your cash lying around anywhere else. Log on to move your money into your HSBC Direct account now, and earn 6.00% APY for as many days as you can until April 30.
Your HSBC Direct Customer Service Team
Existing funds will continue to earn 5.05% APY. I would assume that they’re figuring your “New Money” based on the net of your withdrawals and deposits, such that you can’t simply transfer your money out and then back in. If not, you might be able to goose up the rate on funds that are currently in place. Then again, you’d lose about a week’s worth of interest on the round-trip transfer.
Published on January 27th, 2007 - 9 Comments
Filed under: Banking
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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9 Responses to “HSBC Direct is Trying to Attract New Money”
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January 28th, 2007 at 3:12 am
got the same email… not sure though if money transferred from my hsbc checking account counts as new money… the email wasn’t explicit in defining “money outside of hsbc”… i have direct deposit set up for my checking account so if they count that as hsbc money, i probably won’t get to enjoy the promo rate…
January 28th, 2007 at 6:53 pm
Nickel,
I’m thinking about moving from ING to HSBC, especially if the rate stays strong… thanks for the post!
You rock,
NCN
January 28th, 2007 at 6:58 pm
NCN: HSBC has been well above ING ever since we opened an account with them, and I doubt that will change anytime soon. And if it does, you can always move our money back. We have accounts at HSBC, ING, and Emigrant such that we can rate chase with ease. That being said, we’ve been ‘all in’ at HSBC for quite some time.
January 28th, 2007 at 10:09 pm
6% sounds great, but you have to wonder if it’s really worth the hassle (especially if you’re moving money from another 5.05% account or more, like eloan). HSBC always seems to have the longest transfer time of any of the online savings accounts.
January 29th, 2007 at 2:38 am
Currently I have all my AOR money in Emigrant which is paying 5.05% If HSBC was paying 6% for 12 months or at least 6 months I might switch over but 90 days isn’t worth dealing with.
January 29th, 2007 at 9:38 am
That sounds great. I’ve been thinking of making the move from ING to HSBC as well. Can anyone familiar with both elaborate on the transfer time w/ HSBC? ING seems to be a day or two. Do you know anything about the difference between the two, Nickel?
January 29th, 2007 at 12:11 pm
I believe that the “new money” definition is any balance over your closing balance as of last Friday (or whenever the promotion began).
February 9th, 2007 at 12:18 pm
I signed up for the HSBC promo after discovering that Citibank dropped its once-competitive 5.00% esavings rate to 4.75%. I know the extra quarter is miniscule, but I really don’t want to continue to bank my money with an institution that no longer wishes to be competitive. Anyway, I found the process to sign up relatively painless. The website needs a little work in regards to navigation, and I discovered a little “gotcha” when trying to set up external accounts in their “Bank to Bank Transfers. I opened my HSBC account by funding it from an EFT from my old bank. After setting up my HSBC account online, I tried to set up my old bank as an EFT account (in the Bank to Bank Transfers section), but the website states that this account was already registered. However, my old bank does not show up as a valid account anywhere in the Bank To Bank pulldown menus. I called technical support about this issue and they acknowledged the problem. Of course, the solution was to just set up the HSBC account from my old bank’s website. I did point out to the customer service rep that if folks couldn’t set up an EFT from their old banking institution this glitch is a major inconvenience and it isn’t helping the customer or HSBC make money if there is a delay in transferring more funds into the new HSBC account.