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HSBC Direct CD review

Grow your money at this established bank without being overwhelmed by options.’s rating: 2.3 / 5.0


Regardless of your savings goals, you can grow your nest egg with HSBC’s short and simple CD term options. But you may want to look elsewhere if you’re after a high APY.

An Overview:
  • Few terms
  • Daily compounded interest
  • Established banking network
  • Low APY
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1-year APY


Star rate2.3
6-month APY0.65%
1-year APY1.25%
2-year APY1.75%
Early withdrawal penalty30 days interest for terms of 1 to 12 months
90 days interest for terms of 13 to 24 months
180 days interest for terms of 25 + months
Minimum deposit to open$1,000
Interest compoundingDaily

Review by

Sarah George is a staff writer at Finder who unravels complicated topics about insurance, business and finance. She's been wordsmithing for nearly five years, after earning an English education degree. Her insurance know-how has been featured on You can usually find Sarah sipping hot tea and talking through movie plots in her downtime.

Expert review

The HSBC Direct CD is best for those looking for long-term growth at an established bank.

But it offers lower rates than the competition and not as many short-term options.

How do I open a HSBC Direct CD account?

As a new customer, you’ll need to fill out HSBC‘s application either online, by phone or by mail:

  • Online. Complete your forms the do-it-yourself way on HSBC‘s website:
  1. Go to the provider’s site and follow the steps to apply.
  2. From the Certificates of Deposit page on HSBC‘s site, choose your CD’s term — 6, 12 or 24 months — and click Apply Online underneath your chosen term.
  3. Fill out the application, including your name, date of birth, Social Security number and email address. Click Continue.
  4. Provide your bank information to fund your CD and the desired amount.
  5. The bank will send you a confirmation email with further instructions.
  • By phone. Call HSBC‘s customer service number at 888-404-4050 to open your account or ask questions about the application from 9 a.m. to 5 p.m. ET.
  • By mail. Send your application and a deposit check to this address:
    HSBC Bank USA, N.A.
    PO Box 2013
    Buffalo, NY 14240


To open a CD with HSBC, you’ll need to meet the following requirements:

  • Be at least 18 years old.
  • Be a US citizen.
  • Have a US address for the last three years.
  • Have a minimum of $1,000 to open an account.

Required information.

When applying, keep these items on hand to make the process easier:

  • Social Security number.
  • Home addresses for the past three years.
  • Valid US driver’s license or ID.
  • Bank account information to fund the account.

Funding options

Finally, you’ll need to fund your new CD. You can:

  • Transfer between banks. Use a personal account to fund the CD, even if it’s with another bank.
  • Deliver or mail a check. Bring your funds into an HSBC branch or mail them to your closest location.
  • Use other HSBC accounts. Already have another account with this bank? Use the Personal Internet Banking system to fund your CD.

What are the benefits of an HSBC CD?

Opening a CD with HSBC comes with the following perks:

  • Interest compounded daily. Grow your money faster by earning on the previous day’s interest.
  • Large banking network. You’ll have access to online banking tools and HSBC’s large network of physical locations.
  • Automatic renewal. To keep your money growing, HSBC automatically rolls it into a new CD after the end of the term. You can receive the same APY as before, but call customer service to confirm during the 10-day grace period after the term is over.
  • Renewal changes. During the renewal grace period, transfer some or all of the balance to other bank accounts. Or add money to the CD and let it renew after the term for the same time and APY.

What should I watch out for?

As with most banking products, HSBC’s Direct CDs do have a few drawbacks:

  • Low APY. The longest term earns only 1.75% APY. Some top online banks offer CD rates well above that.
  • Early withdrawal penalty. If you access your money before the term is up, the bank withdraws 30, 90 or 180 days of simple interest, depending on the term you choose.
  • Limited term options. Pick one of just three term options: 6, 12 or 24 months.
  • Fixed interest. If the APY goes up, you’re stuck with the lower interest rate until your CD matures.

If you prefer a CD with higher rates and more term options, you’ll want to keep looking. As always, compare your options when looking for a CD.

Compare with other CDs

Name Product 1-year APY 18-month APY 2-year APY 3-year APY 4-year APY 5-year APY
Quontic Bank CD
Lock in a high rate. Minimum of $500 required to open. Open your account in 3 minutes or less
Bread Savings CDs
With a $1,500 minimum deposit, you'll receive competitive interest rates and no hidden fees with this CD. FDIC insured.
CIT Bank Term CDs
Choose from a range of terms with no maintenance fees and $1,000 minimum to open.
State Exchange Bank CD
Locally-owned independent community bank. FDIC insured. No fees.
Ponce Bank CD
Open a 5-month, 13-month or 48-month CD with some of the highest interest rates available today

Compare up to 4 providers

How do I cash in a CD?

Once you’re ready to access your money, you can transfer it instantly to another HSBC account. You can also move money around between banks using an electronic transfer.

Want to keep saving? Do nothing and let the amount roll into a new CD with the same term. You can call customer service at 800-975-4722 to change the term or to make sure you’ll receive the same APY.

If you go past the CD’s maturity date, you’ll have 10 days to make changes without penalty.

How can I get in touch with customer service?

You’ve got a few options:

  • Phone call. Call the Customer Relationship Center any day of the week from 7 a.m. to 12 a.m. ET at 800-975-4722.
  • Live chat. Click Live Chat on the bank’s homepage. Enter your name and submit your question for quick, convenient online service.
  • Branch locations. Visit one of the US branch locations, mainly in the Eastern United States.

What other savings products does HSBC offer?

HSBC also offers a few other accounts to help you save:

  • HSBC Everyday Savings. A no-frills savings account with a 0.01% APY, no monthly fees if you keep a minimum average balance of $500 and a $1 minimum deposit to open.
  • HSBC Advance Savings. Earn up to 0.05% APY on account balances of $15,000 or more with no monthly maintenance fees and access to HSBC ATMs across the US.
  • HSBC Premier Savings. Tiered rates of up to 0.15% APY on balances of $100,000 or more with nationwide ATM access and an account cap of $2 million.
  • HSBC Direct Savings. An online-only account with a 0.15% APY, no monthly fees and no balance requirement.

Frequently asked questions

CDs ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We rate CDs and share certificates on a scale ranging from one to five stars based on what matters most to you. We consider two factors equally when rating CDs: minimum deposits and annual percentage yields (APYs) relative to term length. If a bank requires a different minimum opening deposit depending on the chosen term, we rate the CD based on the average minimum deposit across all terms. And although some institutions offer CDs with terms ranging from one week to 20 years, we only consider term lengths the FDIC uses in its monthly updates on national rates.

Read the full methodology of how we rate CDs.

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