I just received an email stating that HSBC Direct has created an “online payment account” to compete with ING Direct’s Electric Orange Checking Account.
The major differences are HSBC Direct’s account will offer only a 2.50% APY, which is higher than your traditional checking account but significantly lower than ING’s, and HSBC Direct will reimburse up to three non-HSBC ATM fees per month. Both accounts will issue paper checks to make payments if requested.
I have an email into HSBC Direct to answer some questions not answered by the frequently asked questions list; namely, whether and what kind of overdraft protection is available, and whether HSBC Direct will perform a credit check (hard or soft) before opening the account. Once I hear back, I will update this post.
Update: HSBC has confirmed that there is no overdraft protection offered on their new Payment Account, and the bank does not perform a credit check prior to opening the account.
Update 2: Information on the Online Payment Account is now live on the HSBC Direct website.
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Dammit. I have been waiting for the HSBC Checking to come out and it shows up with whole 2.5% interest. WEAK.
The 3 reimbursements makes this somewhat attractive. I have ING Electric Orange but it would be worth having $120 in here or so in case I’m traveling and need a quick hundred bucks and can’t find an AllPoint ATM nearby. (This happened this weekend actually and I paid a $3.50 fee to take out $80.)
I agree that it wouldn’t be a bad idea to keep a small amount in the account. I have noticed more HSBC ATMs in my area and the ATM fee refunds would come in handy, too.
I might be able to get rid of my traditional checking account at Wachovia by combining the features of ING Direct and HSBC Direct.
I wonder if they’ll change their mind and start doing credit checks like ING.
When will this be available to sign up for? I don’t see it anywhere on HSBC’s website.
Tomorrow
P Didds: The information on the Online Payment Account is now live on the HSBC Direct website. Here you go.
Regarding the overdraft protection, does anyone know if you also have a savings account which you can access with same login, is there still no overdraft protection for your online payment account?
Coulee Bank offers an incredible 6.01% APY with their Rewards Checking account. The rate is easy to earn. All you have to do is make 10 check card transactions a month, use e-statements, and do 1 automatic payment a month (they call it ACH). Coulee Bank pays 6.01% on the first $25,000 and 1.01% on anything above that. The best thing about this account besides the rate is it is FREE, you can apply online, and it is from a great bank with real people that answer the phone. And as they like to say, Banking Green has its Rewards. The Rewards Checking account saves paper and preserves our natural resources. No wonder I feel good about recommending this to everyone I know. Check it out. I guarantee you will love it.