My 2 cents on HSBCDirect

A reader, Alsymer, recently asked for my 2 cents on HSBCDirect. Aside from my frustration with the mortgage side of HSBC I continue to be pretty happy with HSBCDirect for my savings.

I had a few glitches setting up my account, but I got those ironed out pretty quickly. I'd put their web interface somewhere between ING (pretty good) and EmigrantDirect (fair) - my main complaint being the constant opening of new windows instead of just doing a good job at navigation. But it's an annoyance, not an impediment. One more thing that I consider a quirk is that they don't do statements on the last day of the month, but seem to apply interest and issue statements on the day of the month which corresponds to when you opened your account.

I have since made HSBC where my main emergency funds are held and here is why I am currently a fan:

• They offer a sign-up bonus (current promo code: start)
  
• They currently pay the highest APY for $1 to open an account
  
• I can add unlimited "external" banks for transferring (sadly ING is not compatible but this is becoming less of an issue for me)
  
• I can use Quicken's Direct Connect to download my transactions (I abhor web connect, which requires me to go to the website, log in, and initiate a download)

Some people grumble about the hold times. ING and EmigrantDirect both hold deposits for 5 days but my experience so far with HSBCDirect is that deposits via transfer are credited to your account in 48 hours after being debited from the source account. MyMoneyBlog has a great comparison page, so visit that for more details.

The point is to pick one and just start...you can always move your money later.

I think any one of these online savings banks are useful and each person will have their preferences. You could always open an HSBC account and receive $25 and once you have saved at least $250 use that to open an ING account and qualify for the (nerfed) $25 bonus and net yourself $50 just for thrills. Go nuts...just get going!

[Update] If you are looking for other opinions on HSBCDirect, here are some links. If you'd like me to add your opinion to the list, just email me with the URL

• Cap @ Stop Buying Crap
• Jonathan @ My Money Blog
• Jonathan's Comparison of HSBC, ING, Emigrant, and VirtualBank
• Jane Dough @ Boston Gal's Open Wallet compares ING to HSBC