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HSBC Direct Offers Online Checking Account

This article was written by in Banking. 9 comments.


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.

Updated March 24, 2011 and originally published May 29, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 9 comments… read them below or add one }

avatar Paul

Dammit. I have been waiting for the HSBC Checking to come out and it shows up with whole 2.5% interest. WEAK.

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avatar Brent

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.)

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avatar Luke Landes ♦127,550 (Platinum)

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.

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avatar John P.

I wonder if they’ll change their mind and start doing credit checks like ING.

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avatar P Didds

When will this be available to sign up for? I don’t see it anywhere on HSBC’s website.

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avatar Seryozha
avatar Luke Landes ♦127,550 (Platinum)

P Didds: The information on the Online Payment Account is now live on the HSBC Direct website. Here you go.

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avatar yahoo

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?

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avatar Tony Roberts

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.

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