Reporting on how terrible the CD rate environment is for consumers, especially those being offered by the nation’s largest banks, is sort of becoming a theme for us here in 2013. If it discourages you too much, you can take a look at some of the foreign bank deposit rates we’ve covered here and here, but you’ll find interest rates aren’t much higher in other developed countries either.
Anyone who has been in the market for an FDIC insured savings product has undoubtedly come to the realization that large multi-national banks are far from an optimal place to search for the highest certificates of deposit rates.
Last week we made note of both Chase Bank’s CD rates as well as CitiBank’s CD rates and, as of no surprise, we found that both institutions were currently offering annual percentage yields significantly under the national average.
Today, in our coverage of HSBC Bank’s CD rates in 2013, we found them to be no different – in fact, a bit worse.
HSBC has been one of the most recognizable banking names in much of the developed world for some time. Here in the United States they’ve grown the recognition of their brand even further, most recently by a punishing $1.92 billion fine for money laundering. A fine that not only got recycled through 24/7 news outlets for days on end, but was seemingly ho-hummed by HSBC. I guess when you got a market cap of a quarter trillion dollars, you can feel slightly above the law.
As for personal banking consumers, HSBC has a major presence in France, Hong Kong, the United Kingdom, Mexico, Brazil and the United States. They offer a full suite of personal banking products from credit cards to home loans, retirement planning and insurance. Within the savings vertical, and more specifically the US’s FDIC insured deposit market, their products are pumping out yields which make even those with vast sums of cash wonder if it’s even worth the hassle to open an account.
Within their personal savings product line they offer the following products:
1) a high yield (“high yield” being a questionable description for this product) money market account which requires a $25,000 balance and only comes with an APY of between 0.20% and 0.30% depending on your balance amount.
2) an online savings account which also comes with an APY of between 0.20% and 0.30%.
3) a pathetic “premier savings account” yielding 0.05% APY with a minimum deposit requirement of $100
5) and then there’s their current CD rates (shown below).
HSBC Bank CD Rates in 2013
HSBC Helpful Links:
Go to their rate tables.
Locate a US-based branch.
All of the certificates of deposit shown above come with a minimum deposit requirement of $1,000 though we doubt many will open one in 2013.
Whenever banks offer rates of one tenth of one percent on a savings product, we call that a “turned off offer.” A turned off offer basically means what it implies – the product is turned off. The only people likely invested in an HSBC deposit today are those who opened one years ago and have automatically had it renew without them realizing it. HSBC is clearly not attempting to attract any new depositors at this time.
You can compare HSBC’s CD rates with the top offers nationally (below) to see how they stack up against the competition.