HSBCdirect.com ?

Does anyone have any details about HSBC's online savings account? It
has an introductory rate of 4.8%, but I can't find the actual terms
anywhere on their website -- important stuff like how the variable rate
is calculated after the the intro rate expires in April, what fees they
charge, etc. The main page says no fees, but the page that lists all
the different types of accounts has an asterisk and a footnote about
actual rates may be lower due to fees.

Thanks.

Best regards,
Bob

Re: HSBCdirect.com ?

zxcvbob wrote:
>
> Does anyone have any details about HSBC's online savings account? It
> has an introductory rate of 4.8%, but I can't find the actual terms
> anywhere on their website -- important stuff like how the variable rate
> is calculated after the the intro rate expires in April, what fees they
> charge, etc. The main page says no fees, but the page that lists all
> the different types of accounts has an asterisk and a footnote about
> actual rates may be lower due to fees.

Savings accounts are limited, by Regulation D, to no more than 6 third
party payments (checks, electronic payments, telephone transfers, etc.)
per month. Banks are supposed to warn you if you go over, and
ultimately close the account. Banks often take advantage of this rule
to impose fees if you go over that limit.


I don't know that HSBC does charge this fee, but it is one possible fee
they could charge that would reduce actual rates. I regard these
asterisks as boilerplate - stay within the terms of the account, and you
won't pay fees. (I can tell you that on their checking accounts, which
are not subject to Regulation D, that HSBC imposes a $2/month fee if you
want checks returned - thus an asterisk on their checking accounts.)

These days, pretty much all bank deposit rates (other than existing CDs)
are "subject to change". For instance, here's what ING Direct says
about their account:

"After April 15, 2006, all the money in your Orange Savings Account will
earn the current APY at that time. ... The non-promotional APY [3.80%]
is variable and may change during the Sale Period."


--
Mark Freeland

Re: HSBCdirect.com ?

zxcvbob wrote:
> The main page says no fees, but the page that lists all
> the different types of accounts has an asterisk and a footnote about
> actual rates may be lower due to fees.

I think the HSBC Direct Online Savings has no fees. But if you somehow
got to another page comparing different kinds of accounts like regular
savings and checking, then those will have fees just like regular
banks. Most of these high yield online savings can do no fees because
if you violate some condition like no more than 6 withdrawals per
month, instead of charging a fee, they give you a warning and/or close
your account.

> important stuff like how the variable rate is calculated after the the intro rate expires in April

There's really nothing to know about the "variable rate". Every bank's
interest rate is variable. And they're certainly not going to
pigeonhole themselves by telling you exactly how they will determine
interest rate. But before their 4.80% promo rate, they were at 4.25%,
which matched the federal funds rate. So you can expect it to be
somewhere around there.

Go ahead and email or call them directly for these questions. It'll
also give you a chance to preview how their customer service is.

Re: HSBCdirect.com ?

Bucky wrote:
> zxcvbob wrote:
>
>>The main page says no fees, but the page that lists all
>>the different types of accounts has an asterisk and a footnote about
>>actual rates may be lower due to fees.
>
>
> I think the HSBC Direct Online Savings has no fees. But if you somehow
> got to another page comparing different kinds of accounts like regular
> savings and checking, then those will have fees just like regular
> banks. Most of these high yield online savings can do no fees because
> if you violate some condition like no more than 6 withdrawals per
> month, instead of charging a fee, they give you a warning and/or close
> your account.
>
>
>>important stuff like how the variable rate is calculated after the the intro rate expires in April
>
>
> There's really nothing to know about the "variable rate". Every bank's
> interest rate is variable. And they're certainly not going to
> pigeonhole themselves by telling you exactly how they will determine
> interest rate. But before their 4.80% promo rate, they were at 4.25%,
> which matched the federal funds rate. So you can expect it to be
> somewhere around there.
>
> Go ahead and email or call them directly for these questions. It'll
> also give you a chance to preview how their customer service is.
>


I just (minutes ago) opened an account at treasurydirect.gov. Gonna
dabble with 4-week and 13-week T-bills and see what kind of yields I
get. I like the part where the interest is exempt from state taxes.

Bob