HSBC Direct has an online savings account advertised for an annual percentage yield of 1.35%. The rate is current as of January 28, 2010.

The HSBC Direct Online Savings account adds several other features, including

• No monthly fee
• No minimum balance
• No HSBC checking account requirment

Online Savings is one of the higher-yielding accounts that I’ve seen that doesn’t carry either a monthly fee or a minimum balance; HSBC does require that you open the account with at least $1. The account allows you to deposit or withdraw funds at any HSBC automated teller machine. Online Savings, as the name suggests, has online access and also allows deposit by mail, which is always an attractive feature.

I find it unusual that HSBC’s Online Savings does not require you to also have a checking account with the bank, normally another staple of higher-yielding deposit products. This gives you the freedom to use your own checking, and transfer funds in and out of the HSBC account accordingly.

In banks’ scramble to gain an edge in the online banking sphere, convenience combined with high rates is key. HSBC Direct’s Online Savings appears to provide both ease of use and a relatively strong return on interest. If you have used HSBC Direct, throw BankShout a comment or two below, and thanks for reading.