HSBC Online Account - new fees starting sept. 23 (Updated with clarification statement)

Fees for checking account holders too....HSBC is insane!!

Effective 9/23/12, the following Choice Checking account fees are changing:
Monthly Maintenance Fee-$15 (criteria to avoid Monthly Maintenance Fee is
unchanged), Funds Transfer-Out, per outgoing transfer-$35 each, Foreign
Currency Draft (DD Commission)-$30 each.
A Choice Checking account opened less than one year as of September 23,
2012 will not be charged a Monthly Maintenance Fee until its twelve-month
anniversary.

The stupid email gave me the push I needed to close my HSBC savings account which I've had since 2006. The interest rate keeps dropping; ACHs are slow; I get a lot of junk snail mail and yesterday's badly phrased email. More than enough reasons to say good-bye HSBC.

Thanks HSBC, this was the push I needed.
I called customer service, and closed my account.
They will mail me the check.

jmally said:   All savings account/money market APYs suck right now, but with this latest email regardless of it being a mistake or not, I think I'll take the time to move on. Might try Ally bank since the APY is a little higher and they are more committed to low or no fees. HSBC seems to be frogboiling customers into lower and lower rates every 6 months

this similar issue is why I'm also looking to leave TD Bank. As Commerce bank they truly had the lowest checking fees and were the most convenient, but every few months introduced new fees to keep your money.

This is my take too. This thread, even though people are overreacting, reminded me that I'm wasting time by having to administer yet one more bank account that is giving me no benefit. I know this is a fee for wire transfers, but there's no point in maintaining my relationship with HSBC at this point. I already use Alliant and other credit unions, but keep a token amount on deposit at HSBC as a historical artifact.

PollyG said:   What is the best way to close the HSBC account? Is calling the only option?

I read that you can just transfer all your money out of the account, then use BankMail to ask them to close the account for you. If there is any outstanding interest, they are supposed to mail you a check for it. I plan to try closing my account this way, but I've decided to wait until the beginning of Sept after they've posted the interest.

walletLess said:   OP updated with clarification statement posted on HSBC website.

I bet their call volume shot up today!

Ok, I just last month opened an HSBC account as their 'portable credit' sounded like it might be useful if I ever move to another country in the future(a distinct possibility).

Are there any other banks that offer a similar service for 'average joe' clients (read not rich!) planning a lot of international living?

grex23 said:   Bank to bank is still free. They just sent out poorly worded emails. Most banks offer free bank to bank transfers for online accounts still anyways.

Apologies for my ignorance, do you mind sharing which banks allows bank to bank transfer for free (push and pull). I have always thought that HSBC was a great hub bank account, because I use it to move money from one account to another (via HSBC). Otherwise it is a hassle. I agree that transfer take 3-4 days which is slow but I do not know of any other bank that allows me to link to another account and allow me to push and pull from an associated account for free. Thanks!

anxietykl said:   grex23 said:   Bank to bank is still free. They just sent out poorly worded emails. Most banks offer free bank to bank transfers for online accounts still anyways.

Apologies for my ignorance, do you mind sharing which banks allows bank to bank transfer for free (push and pull). I have always thought that HSBC was a great hub bank account, because I use it to move money from one account to another (via HSBC). Otherwise it is a hassle. I agree that transfer take 3-4 days which is slow but I do not know of any other bank that allows me to link to another account and allow me to push and pull from an associated account for free. Thanks!

ING

Dollar Savings Direct

Emigrant Direct

anxietykl said:   grex23 said:   Bank to bank is still free. They just sent out poorly worded emails. Most banks offer free bank to bank transfers for online accounts still anyways.

Apologies for my ignorance, do you mind sharing which banks allows bank to bank transfer for free (push and pull). I have always thought that HSBC was a great hub bank account, because I use it to move money from one account to another (via HSBC). Otherwise it is a hassle. I agree that transfer take 3-4 days which is slow but I do not know of any other bank that allows me to link to another account and allow me to push and pull from an associated account for free. Thanks!

FW-favorite Alliant.

http://consumerist.com/2012/08/hsbc-confuses-angers-online-customers-with-vague-new-fees.html

UPDATE: A rep for HSBC has finally responded to our request for clarification on the fees.

From HSBC:

"A recent communication to HSBC Online Savings Account customers was intended to advise of both an account name change and some account fee changes effective September 23, 2012.

"Feedback from our customers has indicated some confusion about our fee change relating to 'Funds Transfer-in.'

"This is an existing fee for this account. It relates only to outside 'wire transfers' into this account, and it is decreasing from $15 to $12. It does not apply to Bank to Bank transfers, check deposits, or direct deposits of payroll and tax refund checks.

"We apologize for any confusion to our customers and are always available to talk with our customers regarding any questions about their account."

I transfered all my deposits to AMEX Savings after getting the unbelievably poorly crafted email from HSBC. Why would anybody take it mean anything other than the literal "the transfer of funds from another person's account, or another financial institution to your HSBC account"? Nowhere does it say anything about wire transfers. I then requested closure via BankMail and was asked if I was really sure and the fee "clarification". Since HSBC is no longer competitive, it was time to go anyway.

I'm still mystified as to why they have not sent a clarification email out to everybody. Very, very poorly executed and managed.

I now have two accounts (mine and the wife's) with a penny in each.

Asked for clarification and this is their reply:

Thank you for contacting HSBC Bank USA, N.A.

Effective September 23, 2012, the incoming wire transfer fee will be
changed from $15.00 to $12.00 on your Online Savings Account. You will
not be assessed with any fee for receiving direct deposits into your
account.

Please note: You may initiate a Bank to Bank Transfer from or into your
account. When using your HSBC Bank to Bank Transfers service through
Personal Internet Banking, you may only transfer funds between your
accounts with various financial institutions located in the United
States. Please be informed that there is no fee for Bank to Bank
Transfers service.

If you have any further questions or concerns...

glad to know that BtB transactions are still free.. but who is the arse hat who ok'd this e-mail to be sent out?? I think I'm going to pull my $$ and maybe put it into a fidelity acct.. the interest rates are next to nothing now.