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.