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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.

I got this on my HSBC choice checking statement. 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.

blueiedgod said:   Saved me a phone call. I got the same e-mail last night too. Now that all of HSBC's are First Niagara here, and there is no retail presence in town, even though HSBC tower is still the tallest buiding in town, there would have been no way to manage HSBC online account without ability to move money for free.

Quite frankly, I am surprized that I am still with HSBC, since all of local customers were supposed to migrate to First Niagara in the take over, but probbaly because I was an online customer first, and then became a "local" cusotmer by adding checking account, I ended up with HSBC.


You hit on exactly why you're still with HSBC instead of First Niagara. At many banks, the first half of your account number indicates the branch at which you opened your account. If your branch number is one of the ones that got moved to First Niagara, your account got moved, otherwise it didn't. If you opened it online, your branch code could be one that stayed with HSBC.

I had the same thing happen with FleetBoston. A bunch of their branches were divested because of the merger, and most of my colleagues who used BankBoston got moved to the new bank because the local branch switched over, but I didn't because I had opened my account online.

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

scotto777 said:   I got the same message. For those considering new accounts, I opened Ally and it took under 5 minutes. I've already linked my bank accounts and have also linked my HSBC account and made a small transfer. Once that goes through, I plan on transfering the rest on the first of the month after interest posts.

Ally is at .89% compared to .4% for HSBC and also doesn't take 4 days to transfer like HSBC. The interface seems nicer as well.


I plan on doing the same. I've created a Barclays account and currently transferring over.

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.

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

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.

OP updated with clarification statement posted on HSBC website.

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

I bet their call volume shot up today!

"Recently, Online Savings Account customers received an email indicating the Funds Transfer-in fee is changing on September 23, 2012. Please note, this is not a new fee and pertains to wire transfers into your account only. Bank to Bank transfers and other automated deposits, such as direct deposits of payroll and tax refunds, are not impacted by these changes."

Note when you log into your Internet PB account

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?

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.

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!

Chase, actually, offers bank-to-bank transfers at no charge.
Huntington bank
AllyBank
PNC-?

There was a separate thread on this very subject earlier this year, I recall.

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

Anyone know if they charge a fee for a zero balance account? I couldn't find anything listed.

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.

anxietykl said:   

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!


I online transferred between my chase and citibank all the time, and they are free, either pushing or pulling.. the only caveat is both accounts must be under my name.

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."

Only HSBC can screw up the announcement of a reduction in fees ...

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.

xoneinax said:   Only HSBC can screw up the announcement of a reduction in fees ...

Wish I could give more than one green to this!

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

The interest rate and the quality of service has drastically deteriorated recently. There's really no reason to stay with this bank other than for their international banking services.

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...

mrvirgo said:   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.

I've also had an HSBC Online Savings account for years and I decided to close after this as well. It was completely ridiculous that this confusing email went out to begin with.

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.

I only use HSBC because it is the bank with my closest branch so I have the Online Savings to withdraw/deposit funds to. I agree though in that if it wasn't my closest branch, I would have closed out the account as well.



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