HSBC Direct Savings Account - cancel or keep it open?

[win-star]

Hi,

I have a HSBC Direct Savings Account and the interest rate dropped down to 0.80% from 1.00%, so I was wondering if I should cancel or keep the account open?

I was thinking since the interest rate is lower, I transfer most of my money out and keep ~ $400 - $500 for emergence.


Also, is it possible if i give a void cheque to HSBC and link my HSBC Direct Savings Account with my TD Bank or others? if so, do i mail it in or I can walk into the teller and have them do it on the spot.

thanks,
Chris

[tng11]

Yeah, you can just send in a void cheque to HSBC and they'll link up the account. A statement is also acceptable if you don't have cheques for the account. Tellers do not have access to the DSA account in the branch.

If you're putting $400-500 in there and the account works for you in terms of convenience then you should just keep it. Putting it at Ally or People's would generate an extra $0.40 in interest every month... while your money would be a lot harder to access.

[-=phelan=-]

I wouldn't agree that money is ALOT harder to access. But I would say you'd need at least a day. People's does transfers pretty quickly and was able to receive EFTs from them to my TD in 1 day.

[squid]

I wouldn't agree that money is ALOT harder to access. But I would say you'd need at least a day. People's does transfers pretty quickly and was able to receive EFTs from them to my TD in 1 day.

HSBC direct lets you access your cash with free unlimited ATM cash w/d, debit card purchases, and online bill payments.

Question: if you link a chequing account, does it have a push/pull feature? How do fees occur? Is a move from other FI to Direct essentially charged as a transaction from the other bank?

[angel_wing0]

i m still keeping mine open with 20 cents in it

[Colleeseum]

Here is a feature that I really appreciate and would definitely keep it around.

I recently travelled to Hong Kong and various big cities in China. I had withdrew HKD from the HSBC ATM machines with the HSBC bank card. I fully expected to be charged with a transaction fee but as it turned out it was completely free. Not only that, the exchange rate was great.

This is really great for someone like me who does not like to carry too much cash around and travel quite a bit. HSBC can be found in many countries.

[ferkel]

I'm taking most of the funds out of mine too. HSBC can bite me

[yyzvoyageur]

Here is a feature that I really appreciate and would definitely keep it around.

I recently travelled to Hong Kong and various big cities in China. I had withdrew HKD from the HSBC ATM machines with the HSBC bank card. I fully expected to be charged with a transaction fee but as it turned out it was completely free. Not only that, the exchange rate was great.

This is really great for someone like me who does not like to carry too much cash around and travel quite a bit. HSBC can be found in many countries.

I had heard about that, but haven't had the chance to give it a shot since I moved all of my accounts to HSBC from BMO a little while ago. So, are you saying you weren't charged any transaction fees either from the Canadian bank or from the HK side?

[CorSter]

I have one with $100 in it for Exchange Network and BMO access (the Exchange Network is really big in Ottawa + Quebec)

[tng11]

I had heard about that, but haven't had the chance to give it a shot since I moved all of my accounts to HSBC from BMO a little while ago. So, are you saying you weren't charged any transaction fees either from the Canadian bank or from the HK side?

They won't charge you from both sides. I do find it funny they don't openly advertise this benefit (and only do it for Premier clients). Before I was a Premier client I used the card in the US, England and HK and there were no fees on either end. Not to mention, the foreign exchange markup was like 1% over interbank (compared to 2.5% at other banks).

Normally in US HSBC machines they will charge you a $3 surcharge on their side if you use a non-HSBC USA card at the machines, but if you use an HSBC card from anywhere else in the world the machine detects it and does not charge the surcharge.

[angel_wing0]

nice, it's worth keeping the 20 cents in the account then

[yyzvoyageur]

Thanks for the info. That's a really great benefit. I had heard from a couple places (can't remember where) that this was only for Premier clients, but evidently not. That 1% is fantastic too.

[angel_wing0]

and there are tons of hsbc atm's in hk and macau, so that would rock if i ever ran out of money

[tng11]

Here's an interesting observation:

I used the Premier card to withdraw euros from an HSBC France ATM and the markup was 1%. However I made another euro withdrawal in Germany and the exchange rate markup was around 2.5% (although I didn't pay transaction fees as all international ATM usage is free for Premier). I've been told the exchange rate if you use another HSBC's ATM is more favourable because the exchange is done within HSBC's global network, while the non-HSBC transactions go through the Cirrus or PLUS system networks where Visa/MC exchange rates are charged to HSBC (already marked up) and HSBC also tacks on the 1% fee.

It seems to be pretty consistent through the group, as I have tested my HK and US HSBC cards in Canadian ATMs and I still get near interbank rates. Although the best exchange rates are obtained through the HSBC Premier Global Transfers function (markup on interbank rates is less than 1/4 percent).

[Colleeseum]

Yes no fee on neither side. ie when I use mine in HK and China, there was no fee whatsoever! I have done withdrawal probably 5-6 times, no fee anywhere in my account and great exchange rate.

Also note that I am NOT premier customer. The only thing I have with HSBC is the Direct Savings Account. I am not a "VIP" customer of theirs.