HSBC Announces New Hybrid Checking Account

Rhea-AI Summary

HSBC Bank USA has launched the HSBC Hybrid Checking Account, targeting businesses with a product that combines an Earnings Credit Rate (ECR) and credit interest. This account allows firms to earn interest on every dollar deposited. Unlike traditional ECR accounts, where unused credits are lost, the hybrid account credits any excess earnings back to the client. This account aims to maximize yields, reduce costs, and save time by eliminating the need for multiple accounts. Thomas Halpin, HSBC’s North America Head of Global Payments Solutions, highlighted its benefits in offsetting service fees and growing account balances.

Positive

• HSBC introduces a new product that combines ECR with credit interest, optimizing returns for businesses.
• The Hybrid Checking Account credits back excess earnings, ensuring no loss of unused credits for clients.
• Cash balances above the ECR threshold continue to earn traditional credit interest.
• The account reduces operational complexity by eliminating the need for multiple accounts.
• HSBC aims to address complex organizational needs, providing a solution that offsets service fees and grows account balances.

Negative

• No negative business or financial aspects are explicitly mentioned in the PR.

NEW YORK--(BUSINESS WIRE)-- HSBC Bank USA today announced the launch of the HSBC Hybrid Checking Account, a new product designed to maximize a company’s returns by combining an Earnings Credit Rate (ECR) with credit interest, thus earning interest on every dollar deposited into the account.

Unlike traditional ECR accounts where unused credits are forfeited, the new HSBC Hybrid Checking Account ensures that businesses benefit from both earnings credit and credit interest on remaining balances. By setting a threshold amount clients target their balance for the earning credit calculation. Any excess earnings credit, are credited back to the clients’ account. Cash balances above the ECR threshold earn traditional credit interest.

“Every organization has complex needs, and the HSBC Hybrid Checking Account provides an important solution to our clients by both offsetting service fees and growing account balances at the same time,” said Thomas Halpin, HSBC North America Head of Global Payments Solutions. “This flexible interest-bearing account maximizes yield, lowers cost, and most importantly, saves time and effort by reducing the need for multiple accounts.”

About HSBC

HSBC Holdings plc

HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,001bn at 31 March 2024, HSBC is one of the world’s largest banking and financial services organisations.

HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through Wealth and Personal Banking, Commercial Banking, Private Banking, Global Banking, and Markets and Securities Services. Deposit products are offered by HSBC Bank USA, N.A., Member FDIC. It operates wealth centers in: California; Washington, D.C.; Florida; New Jersey; New York; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc.

For more information, visit: HSBC in the USA

View source version on businesswire.com: https://www.businesswire.com/news/home/20240515562129/en/

Media enquiries:

Matt Kozar

HSBC Vice President of External Communications, US

matt.kozar@us.hsbc.com

Source: HSBC Bank USA

FAQ

What is the HSBC Hybrid Checking Account?

The HSBC Hybrid Checking Account is a new product that combines an Earnings Credit Rate (ECR) with credit interest, allowing businesses to earn interest on every dollar deposited.

How does the HSBC Hybrid Checking Account benefit businesses?

The account maximizes yield, reduces costs, and saves time by reducing the need for multiple accounts, while also offsetting service fees and growing account balances.

What happens to unused earnings credits in HSBC's Hybrid Checking Account?

Unused earnings credits are credited back to the client’s account, ensuring no loss of value.

Who announced the HSBC Hybrid Checking Account?

Thomas Halpin, HSBC’s North America Head of Global Payments Solutions, announced the HSBC Hybrid Checking Account.

What is the key feature of HSBC's new checking account?

The key feature is the combination of an Earnings Credit Rate with credit interest, providing returns on every dollar deposited.