4.65%APY HSBCdirect.com Savings Account

[abowers]

Just came across this by accident. Didn't realize HSBC was offering interest rates competitive with ING.

http://www.us.hsbc.com/1/2/3/persona...BUS_XHC02006BG

[sweeps]

ING hasn't been competitive for at least a year. Please see the numerous threads on GMAC Bank, HSBC, Emigrant Direct, and several other banks which have much better rates than ING.

[abowers]

I opened an ING account a couple months ago and got the $25 bonus - I knew about Emigrant -- I guess I just didn't realize HSBC had an online bank with different rates than the in-person bank. I'm not going to deal with changing my accounts to get an extra .5%

[Haku]

HSBC has always had a very good online savings offer.

The trouble is, they are not worth it for anything else beyond that.

Even so, there are better online APYs out there right now, but their fanaticism towards online security is second to none.

[BTC]

.5/4.15 = .12048 * 100 = 12.048%. That's how much greater your current return would be with HSBC as compared to ING Direct.

[magicbeans]

HSBC Direct has been a real pain in my rear end setting up. First of all, they used information from my credit report to confirm my identity, which bothers me just a little since A) I'm not signing up for a credit line or a loan with them, and B) what if information on my credit report was wrong?

While signing up online, I had the option of either having HSBC make small deposits into my checking account and then me verifying the amounts to prove that my checking account was, indeed mine (a tried and true method of verification), or giving HSBC my USERNAME AND PASSWORD for my online checking account for more a instantaneous verification. I'm sorry, but I don't think anyone but me should have the username and password for my online checking account.

They offered me an ATM card, which I opted out of, since all I need this for is for savings. I'm not intending to go around taking money out of it, and I don't need the temptation. Also, frankly, I don't want somebody else to have the option to be able to do that if my wallet gets stolen.

Unfortunately, because I don't have said ATM card, I am unable to do a bank-to-bank transfer. Apparently, you can't transfer online without an ATM card and associate PIN, which makes absolutely no sense.

So I called HSBC to see if I could set up my bank-to-bank transfer over the phone. The nice Indian lady got me set up, but I still had to give them my social security number for security (which really irks me, because I don't like giving my Social security number to anyone, even if they are a bank). Not only that, but when I did set up my bank-to-bank transfer, the system once again asked me for my online checking username and password to verify ownership.

I gave up and put it in, and two minutes later changed my password on my checking account. But it was a pain in the you-know-what, and frankly, I don't really care how high HSBC's interest rate is, I don't think I want them knowing that much about me. I'm moving my money.

[Haku]

Did I mention they were fanatical about online security?

[magicbeans]

I'm as happy as the next person to have a secure site. But there are plenty of other ways to verify that I am who I say I am. Ask me my mother's maiden name, my date of birth, my first pet's name, the street on which I was born. Don't ask for my social security number! In this day and age, where banks especially are vulnerable to having their records hacked into, I don't want my social security number floating around for just anyone to use.

[sweeps]

Please name a bank that doesn't ask for your SSN when you open an account, particularly an interest-bearing account.

[parafly]

Originally Posted by magicbeans

I'm as happy as the next person to have a secure site. But there are plenty of other ways to verify that I am who I say I am. Ask me my mother's maiden name, my date of birth, my first pet's name, the street on which I was born. Don't ask for my social security number! In this day and age, where banks especially are vulnerable to having their records hacked into, I don't want my social security number floating around for just anyone to use.

All online banks with high yield savings accounts ask for your SSN. They actually do a credit check on you before approving your account, and they need your SSN to do this.

[magicbeans]

Okay, good point about all banks wanting my SSN. It still rankles, but I now see why.

But I still have a problem with using my SSN for verification. Can't HSBC use a partial SSN, like ING? I still don't want to have to give out my full SSN to some stranger on the phone.

Also, why do banks run a credit check to open a savings account? I'm not applying for a mortgage or line of credit. If I had a bad credit score, would I get denied a savings account?

[sweeps]

I understand your concern. But if you think about it, the problem goes way beyond an SSN getting out in the open. Let's say you open an account and give up "just" your zip code, mother's maiden name and last 4 digits of your SSN. That information can be easily accessed by an insider or a hacker and that person can open a line of credit under your name without ever knowing your full SSN.

No one can really expect to keep any number private as long as that number must ultimately be used for something. The problem is there needs to be a better way of authenticating you than just happening to know a "private" number. Biometrics is an option, but that has problems as well. For example, once your fingerprint or retina scan can be digitized by someone else, then that's a lost cause. There are other methods being worked on, but I'm going way off topic here....

[phipsi95]

I opened my account with HSBC in January. The initial set up was a hassle...especially since I didn't get their ATM card. However, since then it has been smooth sailing. The interest rates are great and I have had good experiences each time I've called in for something. The only thing I don't like about them is the amount of time it takes to do a bank to bank transfer...usually takes about 5 days for it to complete.

[joseblanco]

Excellent service, highly competitive rates & brick-n-mortar locations sprinkled across the US with significant density in the Mid-Atlantic area. Anyone traveling internationally would be wise to get an HSBC account so they can have immediate access w/o high cost to funds throughout the world. I got a sign-up bonus & 4.8 APY for the first 4 months of the year. They then sent me an offer for a 50 USD balance if I opened a Checking account and took an ATM card. I could not be happier as long as they stay rate competitive.

[krayziebone33]

Originally Posted by magicbeans

Ask me my mother's maiden name, my date of birth, my first pet's name, the street on which I was born.

I don't know Magic, wouldn't any close relative or even a really, really good friend know one or all of the answers? My cousin gave the state troopers my full name, D.O.B., AND the current address on MY driver's license when he got pulled over for speeding on a suspended license. I had warrants out for MY arrest for two months before I found out what had happened.

[krayziebone33]

Originally Posted by Sweepsplayer

Please name a bank that doesn't ask for your SSN when you open an account, particularly an interest-bearing account.

That's what I was thinking. I think there is a difference between being careful and prudent and just plain anal (hope I'm allowed to use that word on here). I have not yet seen an account application, school application, credit application, or job application that did not ask for one's social security number.

[KellyJef]

Currently, HSBC is at 5.05%.

I've been very satisfied with this account.

[magicbeans]

Originally Posted by krayziebone33

That's what I was thinking. I think there is a difference between being careful and prudent and just plain anal (hope I'm allowed to use that word on here). I have not yet seen an account application, school application, credit application, or job application that did not ask for one's social security number.

Krayzie, you're right, and I know it sounds pretty anal. However, I transcribe for a living, and I have to type out a fair amount of car insurance claims (you know, those phone interviews we have to do with the insurance company when we get into an accident?).

Guess what many insurance companies ask for ON TAPE for verification of identity? SSN. And here I am, I could be anybody...heck, I AM anybody, and now it's my job to type out that person's name, address, SSN, and email it back IN AN UNSECURE DOCUMENT (as per the client's instructions) to the client (we're talking a big insurance company here, not a fly-by-night operation). It's a good thing I'm honest and don't use my knowledge for evil.

Can you see now why I don't want to give out my SSN over the phone? I might be a little paranoid, but hey, just because I'm paranoid doesn't mean they're not after me.

Also, nobody has answered my previous question: why does HSBC run a credit check on me when I'm opening up a savings account? I'm not applying for credit, I just want to put away some money.

That being said, I have been listening to what you folks have been saying, and I decided NOT to close my HSBC account. Now that I have straightened things out with the whole money transfer thing, I'm quite happy, and the 5.05% interest is definitely worth the hassle.

[abowers]

I'm around SSNs all day too - working in a college's financial aid office. When they call, we are supposed to take their SSN to pull up their name -- but I know many parents are hesitant about giving out their studen'ts SSN over the phone, so I ask them for their SSN *or* their Student ID number (which unfortunately not many know).

My college used SSNs all the time too -- I had my student ID memorized but many didn't. I gave my student ID instead of SSN whenever possible.

[sweeps]

Even if a bank references you by account number instead of SSN, they still need to have the SSN to report interest income to the IRS.

Let's face it, SSNs are public information. You can try hiding it from people but anyone can get your SSN with little or no effort. Until companies stop authenticating people by asking for their SSN (or even more bizarre, the last 4 digits of their SSN), identity thefts will continue to increase.