Make Money Jot

Monday Money Management Tips 

In a previous Money Management Tip, I discussed the Online Savings Account from HSBC Direct.  A reader asked me about the other account option from HSBC Direct, the Online Payment Account, so today’s Money Management Tip is about this other account option.

Up front disclosure, I do not use the Online Payment Account, so I can not give you a first hand review.  I have been using the Online Savings Account and these are the only drawbacks that I have identified.

Only Drawbacks

1. There is a daily transfer limit of $300,000.  This is not a problem
for me, but if this is a problem for you, can I get a grant?

2. This is online banking.  You will not have a branch office that you
can go to withdraw or deposit money.

3. You need to have a US checking account with a financial institution
that offers ACH transfers.

4. Each ACH transfer takes 3 business days, M-F, except holidays.

The Online Payment Account is designed to be paired with your savings account and to replace having to keep money in a checking account to pay bills.  There are several benefits as noted on the website for HSBCDirect.com:

Take care of bills and other payments.
• Send one-time payments or schedule recurring payments.
You control who you pay and when. Add as many companies or people as you like.
• Pay electronically. It’s paperless, fast and efficient.
• Make purchases or get cash at more than 395,000 ATMs nationwide with a debit card.

If you use a non-HSBC ATM in the U.S., we’ll reimburse the first 3 ATM surcharge/convenience fees each month.
Earn interest where you may not have before.
• Your money will grow 9x more than in traditional checking accounts.±
• Get 2.50% APY** on your Online Payment Account balance.
• Reach your savings goals even faster.
Even your spending money will be helping you save.

Link to your HSBC Direct Online Savings.
• With both accounts, you can earn interest in two places.
You’ll be making more of all your money, not just your savings.
• Transfer money to your Online Savings account to earn more, instantly.
Transfers take seconds instead of days, so there’s no time or earnings wasted.
• Both accounts in one place means more control over your money.
It’ll be easy to manage your expenses as closely as you do your savings.

And, know you’re putting your money in a good place.
• Your money’s FDIC-insured to the maximum permitted by law.
You should never open an online deposit account if the institution isn’t insured to protect your funds. For more information about FDIC insurance, visit www.fdic.gov.
• You’ll be banking in a secure online environment.
Your information is password protected and encrypted with the latest security technology.
• Kiplinger’s Personal Finance magazine named HSBC Direct “Best Online Savings Account” in 2006.

To look into this option for your personal money management, go to http://www.hsbcdirect.com

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