HSBC Direct Review of Savings and CD Rates

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Updated on Monday, October 1, 2018

HSBC Direct’s savings account option

Direct Savings

Great rates with extremely high minimum balance requirements.
APYMinimum Balance to Earn APY
  • Minimum opening deposit: $1
  • Minimum balance to earn APY: $0
  • Monthly account maintenance fee: $0
  • ATM fee: No debit card issued with this account
  • ATM fee refund: No debit card issued with this account
  • Overdraft fee: None; you cannot overdraft this account

The HSBC Direct Savings account was reintroduced in July 2018 after eight years off the market. Since July, the offered APY on this account has been steadily rising, and it is now one of the best on the market. A new account requires new money — transfers from an existing HSBC Direct account are not permitted to initially fund the account.

While HSBC Direct will not let you overdraw this account, you should be aware that as a savings account, it is subject to Federal Reserve Regulation D, which states that you cannot make more than six withdrawals per month. If you do, HSBC Direct may shut down your account or convert it into a checking account, which would make you lose the high APY that makes Direct Savings so attractive in the first place.

How to get HSBC’s Direct Savings account

You can get the application process started online. Applicants need to be at least 18 years of age and have a Social Security number. Along with those requirements, you need to have a current U.S. residential address for the past three years. For identification, you can use a driver’s license, non-driver identification card, learner’s permit, passport or Permanent Resident Card/Green Card.


on HSBC Direct’s secure website

Member FDIC

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How HSBC Direct’s savings account compares

HSBC Direct’s savings account offers one of the highest rates on the market. If you’re looking to grow your liquid savings, you should absolutely consider this account as a top contender.

It’s important to seek out information about other high-yield accounts before you open your account — even if you’re not concerned about meeting the balance requirements.

HSBC Direct’s CD rates

Direct Certificates of Deposit

These CDs do not have competitive rates. Look elsewhere for your certificates.
6 Months0.20%
9 Months0.75%
12 Months0.30%
18 Months0.95%
24 Months0.30%
36 Months1.30%
48 Months1.30%
  • Minimum opening deposit: $1,000
  • Minimum balance to earn APY: $1,000
  • Early withdrawal penalty: 30 days’ worth of simple interest on 6, 9 and 12 month CDs; 90 days’ worth of interest on 18 and 24 month CDs; 180 days’ worth of interest on 36 and 48 month CDs

In contrast with its excellent savings rates, HSBC Direct’s CDs offer low rates when compared to the competition. If you make an early withdrawal on these CDs, you will be charged a standard penalty. But what really stings about these certificates is that if your balance dips below the $1,000 minimum requirement, your certificate will stop earning any interest.

This is not atypical for a certificate. In fact, everything about HSBC Direct’s CDs is fairly average. But you don’t want average rates on your certificate when there are better options out there.

How to get HSBC Direct’s CDs

Should you decide to open an HSBC Direct CD, you can find the application online.


on HSBC’s secure website

Member FDIC

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How HSBC Direct’s CD rates compare

HSBC Direct’s certificates of deposit pale in comparison to the competition. Even the highest rates offered are half, and sometimes even just one-third, of the best rates on the market. If you’re opening a certificate, you’re not going to be able to access your money for the entire length of the term without paying a penalty. Make sure the wait is worth it by scoring a higher APY on your CD.

Overall review of HSBC Direct’s banking products

HSBC Direct offers a mixed bag for new customers. You wouldn’t be missing much if you overlooked its CD offerings, as the rates are simply not competitive. However, it would not be wise to skip over the Direct Savings account.

With one of the highest APY offers on the market, the Direct Savings account can be a good way to earn a decent return on your savings. As good as the account is, we always recommend shopping around to see if there’s anything better found elsewhere.