HSBC 6.0% promotion

[catlinye_maker]

krayziebone33, did you have HSBC transfer money to your HSBC account? I've found they are very fast pulling money from other banks, but you won't see it credited to your HSBC account for two more days after that. What happens to your money those two missing days is anyones guess.

It's sitting in HSBC's accounts, earning them interest. It's part of how they are able to offer the high savings rates. If everyone else can manage an ACH transfer in two days, it's the only explanation that makes sense. They're "working the float". IMO only, no hard facts to back it up. I certainly hope that's the reason for the long transfer times, otherwise we're looking to incompetence for an explanation.

[wyett3]

Look at the comments to this blog entry Is HBSC Taking Advantage Of The Float? An Experiment » My Money Blog. HSBC's transfer slowness seem's to be due to their choice of using CashEdge's 3-day transfer system.

Here's HSBC's reply to my question "Where is my money during bank2bank transfers:

Bank to Bank Transfers are ACH (Automated Clearing
House) transactions and go through a clearing process
through the Federal Reserve. Once the money is debited from
the sending bank, it will take approximately one business
day to reach the ACH Network, approximately one business
day to be processed through the Network and approximately
one business day to post to the receiving bank. As the money
is not in the account at throughout the transfer processing
stage, there is no way to earn interest. We apologize for
any inconvenience this may cause.

I guess CashEdge is earning interest on the float as its cut for processing the transfer. As big as HSBC is you'd think they could do better!

[mrvirgo]

All I want to know is: has anyone had problems moving money OUTof HSBC? I know it typically takes them at least three days to make transfers either in or out. Everyone knows they are notoriously slow! I am concerned that at the end of the 6% promo, they will give me grief when I go to pull my money out. If on May 1st they drop their rate significantly, I will join the stamped to the exit. I don't want to face a huge delay waiting to get my cash elsewhere. Thanks.

[sweeps]

Other than the 3-day delay, no never had a problem withdrawing from HSBC. Initiate the withdrawal at the beginning of the week to minimize the time in transit.

[mrvirgo]

Thanks Sweeps. I want to move another 3K into my on line savings account but will need some of that money to pay my taxes in April. I was afraid I might run into glitches and thus become delinquent on my federal and state taxes.I always make a withdrawal either on Sunday, Monday or Tuesday. The rest of the week is asking for a long delay which I don't want.

[krayziebone33]

krayziebone33, did you have HSBC transfer money to your HSBC account? I've found they are very fast pulling money from other banks, but you won't see it credited to your HSBC account for two more days after that. What happens to your money those two missing days is anyones guess.
If you know something I don't know about speeding transfer time, please let me in on the secret. Basically, no matter what I've done with them in the last year, it's three days either in or out, no matter which bank is pushing or pulling. The slow transfer time is the only thing I don't like about HSBC.

No, I had HSBC withdraw the money from my checking account. Lately, the transfers have been moving really fast compared to when I first opened the account. I'm glad because this new 6% interest is great.

[Daylily]

I finally got on the HSBC bandwagon and have an account opened and funded with an initial deposit. I have also received my ID and password to get things rolling. I logged on to the site because I was wanting to transfer more money to HSBC from my non-HSBC account. I started to read the info on Bank to Bank transfers and came across this:

A $3.00 transaction fee will be charged for each outbound transfer from your HSBC accounts to your non-HSBC accounts.

So if I take money out I'm going to be charged? Perhaps it was naive of me not to investigate this matter earlier but I thought it would have been brought up in this thread as a downside to the 6.0% introductory rate.

[mrvirgo]

Daylily
Not to worry. The imbecil who wrote that on HSBC's website ought to be fired for total lack of clarity. I just moved money in and out last week (two transactions IN and two OUT) of my HSBC online savings account and there was absolutely no charge at all for any of the four the bank to bank transfers. That "$3.00"phrase has caused a lot of people a great deal of consternatiion. There is absolutely no charge for on line accounts when you want to move money.
By the way, it took three days to complete the inbound and outbound transactions and you will get an email to let you know when the process has started and another when it's complete.
I am getting to like HSBC more every day.

[catlinye_maker]

I finally got on the HSBC bandwagon and have an account opened and funded with an initial deposit. I have also received my ID and password to get things rolling. I logged on to the site because I was wanting to transfer more money to HSBC from my non-HSBC account. I started to read the info on Bank to Bank transfers and came across this:

A $3.00 transaction fee will be charged for each outbound transfer from your HSBC accounts to your non-HSBC accounts.

So if I take money out I'm going to be charged? Perhaps it was naive of me not to investigate this matter earlier but I thought it would have been brought up in this thread as a downside to the 6.0% introductory rate.

That sentence is then negated by the following one:

"No transaction fees will be charged for HSBC Online Savings, Domestic Private Banking or HSBC Premier customers"

I'm not sure which HSBC accounts do incur that $3 fee but I know that my online savings account has not been charged no matter which way the money goes nor (so far) which account generates the transaction. I'm experimenting with depositing money into my HSBC savings using my primary checking as the "pusher" to see if that is a faster transfer, and with taking money out using my money market account. If I'm charged a fee I'll let you know, but so far all the transfers have been free, if lengthy.