HSBC Savings Online--Nightmare Service

[Dan B]

Many of you may have been tempted like me to start an online savings account with HSBC. I transferred $150,000 from Emigrant Direct to HSBC.

Be aware that HSBC has possibly the worst customer service I have ever encountered. In April, when there was a transfer issue, I called the number on their web site. After 3 phone transfers, one disconnection and a SIXTY MINUTE HOLD TIME, I reached an offshore CSR from India. He apologized but was not empowered to remedy my situation.

In late April, I set out to transfer out my funds and move back to HSBC. Unlike Emigrant direct, transfers from HSBC take 4 days to complete (and they remove the funds and stop paying interest the last 2 days-same 2 day free bank float for them when transferring in--Emigrant does not do this).

I mistakenly attempted an online transfer of $13 more than was in the account. Five business days later they notified me and charged me a $33 overdraft. Now my account shows "suspended." No notice or explanation. Went thru HSBC's customer service voice mail maze again. Reached an offshore CSR from India. He transferred me. Finally another CSR from India explained that the $13 overdraft led them to suspend my account which had $59,287 in it.

Undoing that suspension will take another 3 to 5 business days, I am advised. Then I can initiate a transfer. Which will take another 4 or more business days.

Bottom line. They have held my money up now for 12 days and it looks to be another 8 days.

A word to the wise. Poor customer service, lack of accountability--I was told there is no phone number anywhere in the US I can call to discuss this), long hold times, long transfer times etc make HSBC not worth the headache.

I bank also at Emigrant Direct and B of America--also very large banks. While they each have voice mail mazes, you can reach a person empowered to solve problems.

This is just one of life's minor aggravations. There is nothing I can do to undo this. But what I can do is post a warning on the internet for others considering using HSBC.

The extra 1/4 or 1/8 interest rate is not worth dealing with this company.

[BTC]

I've never had any problems with my HSBC account, but their transfer times do suck in comparison to the other online accounts I have.

[safari]

For those looking to switch, I highly recommend GMAC Bank. They are currently paying 5.3% APY, and the transfers are really fast. This Monday I submitted a request from GMAC site to transfer money from my outside checking account to GMAC, and that amount was posted to my account on Tuesday and started earning interest, even though the money wasn't debited from my checking account until Wednesday. GMAC also offers checkwriting and they refund all ATM fees charged by other banks. When I called their customer service, the hold time was very short, and their representatives are located in US.

[Vapors]

I second GMAC Bank. I have never had any issues with them but their transfer times are quick and they pay very competitive rates.

[poundwise]

Just make sure you maintain a $500 balance with GMAC, otherwise, a $5 or $7.50 fee will be assessed each cycle.

It's a minor point but I thought it should be mentioned.

There are many banks with higher interest and faster transfers than HSBC. Check out the link below for more info.

[puck36]

I never had any problems with HSBC. The transfer time with HSBC is only 3 days. I know a few people that have accounts with HSBC and never had any problems.

[poundwise]

I never had any problems with HSBC. The transfer time with HSBC is only 3 days. I know a few people that have accounts with HSBC and never had any problems.

HSBC is fine. The fact, however, is that what seems to take 3-5 days with HSBC takes 24-48 hours with many other online savings banks.

That doesn't mean they aren't any good or anything, it just happens to be one drawback with HSBC.

[rooskers]

I have never had any problems when contacting HSBC's customer service however like many have said the transfer time is 3 or more days. I had my money in there during the promotional 6% and now have moved it over to FNBO for their promotional 6%. So far FNBO has been very good. Transfer times are not the fastest either 2-3 days but I had no problems setting up the account and their customer service was good when I had a question. I know this is no help to you but everytime I hear about an overdraft it reminds me to double check what I am doing so I don't have to go through the problems associated with it. Sorry to hear about your troubles and hope all goes well in the future.

[Dan B]

To the poster who said HSBC was fine, my question would be whether you have had to use customer service where you had to reach a live person.

Just know that HSBC skimps on live customer service. May not seem like a big deal until you find that you cannot access your funds for 2 weeks. That is what occurred here to me. B/c of the 4-5 day "normal" transfer time, if something goes wrong with the transfer (or you need to intitiate a second transfer), you must wait for the first transfer to complete before you can access the account again. No doubt I made a mistake by putting in $52,300 instead of 52,287 (although its not like I wrote a bad check it was an input error--most online interfaces will not allow you to transfer more money than you have in your account). But it took 10 days and still counting for that transfer to complete (rejected--NSF fee, resubmitted automatically, second computer generated NSF fee, then computer generated suspension of my account). CSR unwilling to do anything to solve the problem.

It is very frustrating to not be able to access your savings funds which I, like I suspect others, need to access rather quickly at times.

The transfer delay is also a little fishy. If you watch your account, the money leaves your funding account for transfer but it does not post for 48 hours. Same thing on transfers out. HSBC is taking a free float. I would guess that HSBC has calculated the float time offsets some of the interest rate.

Offshore CSR. Long hold times. No other contact number. Fishy transfer times.

[rooskers]

I will admit when I had to reach customer service it was while I was setting up the account my computer froze and I was not sure if some of my information had gotten through. When I called the number given to help set up accounts I reached a person in the U.S. and they were friendly and helpful but that may have been because I was setting up the account. I have never tryed to contact them over the phone again.

[sweeps]

Many of you may have been tempted like me to start an online savings account with HSBC. I transferred $150,000 from Emigrant Direct to HSBC.

That's a pretty big leap of faith...

[Aleta]

I know that if you signed up for the 6% promotion; you have to keep your account there for 6 months and there is no certain amount. Monday, I also opened an account with FNBO and transferred money from HSBC. I opened it on the 7th, the money was taken out of HSBC on the 8th, and showed up with FNBO on the 10th today. So, they probably did hold it. I believe that HSBC is a London owned bank and they are international which could explain why their customer service people are everywhere. I do notice that they do have accents.

Sometimes, it can be easier to just write a check. That's what Vanguard advised me to do because the wait time is so long.

Also, you were depositing a larger amount of money; maybe that was the problem. I know that you can't deposit more than $250,000. in a day.

[DayByDay]

That is terrible. Thanks for the warning!

[anonymous_saver]

Sorry about your poor customer service experience. I have also had poor experiences with HSBC... the customer service person was really mad that I didn't want to receive an ATM card from them, they just wouldn't let it go... I had to say it very strongly just to get it through to them.

Transfer times have been horrible compared to other places. Emigrant always transfers money over the next day for me, so I'm going with them for now!


By the way, what is the $150,000 for? Just curious, because that sounds like an amazingly large emergency fund.

[Dan B]

On several points

The money is savings not invested in the market and some tax money. The effort to get the money out for taxes and encountering a delay was why I had to call in mid April which was the first of two bad encounters. The web site gives you a choice of selecting your transfer date or intitiating it immediately-I set the date one week in advance and assumed that would be the date of the transfer--4-16, it turns out that is the day they start their 4-5 day long transfer process.

In trying to expedite that transfer, I called a number listed on their site--typical big company voice mail maze. Reached a live person after fairly short wait. Indian accent. Unable to help, said she was not in the online banking department. She transferred me. Long hold of over 30 minutes then the system suddenly hung up.

I tried again. Same maze. This time transferred again and hold time was over 30 minutes. Someone did answer this time. Refused to help. I offered to pay for a wire transfer. Said that was not available for online accounts. I asked if there was anyone else I could call or speak to. Was told no. I wound up taking a 2 day margin loan on my stock to make sure the IRS check cleared.

I think $150k is a decent deposit and one which I had hoped I could get better service than my local cable company or a 3rd rate sotware tech support line provides--in those cases, you expect poor customer service as a cost of doing business in today's world.

HSBC did give me a chuckle though. When you are on hold they periodically play a message saying that "in order to provide world class service" my call may be recorded.

Its really no mystery as to what goes on at HSBC. The mickey mouse long transfer with 2 days where they keep the $ without paying interest, the lack of enough operators to answer calls, outsourcing to India etc shows they cut corners.

The power of the internet allows consumers to post their experiences. With so many banks offering equal or better rates now than HSBC, why would someone bank at a company that skimps on customer service and does mickey mouse games like holding money for 2 days without paying interest--a minor cost to a consumer that no one is going to pursue but one that leads to significant free interest float for HSBC when they aggregate all their accounts.

I can contrast this with Emigrant. Emigrant places a hold on transfers for 10 before you can withdraw. About 7 months ago,I needed to withdraw some money recently transferred sooner than 10 days. In contrast to HSBC, I reached someone in the US who looked at my account and overrode the transfer 10 day hold period. And they followed up with a later call.