I've had an HSBC checking account since I started college 10+ years ago. While I’ve not always been thrilled with HSBC and their customer service, I’ve haven’t had a real reason to move away from them. All that ended with the HSBC letter I received in the mail today.
Apparently HSBC is no longer offering a “Free Checking account.” Instead, I have been immediately switched to a “Choice Checking account.” What does this mean? According the letter, the Choice Checking account gives me “value and convenience with great benefits.” It also comes with an $8 monthly maintenance fee.
As I read on, the letter states that I can avoid the monthly maintenance fee by setting up a monthly Direct Deposit. I am a small business owner so this is not an option for me. Even if you can set up a Direct Deposit with them, if you happen to lose your job or change jobs and the Direct Deposit stops, you will immediately begin being charged the $8 monthly maintenance fee.
My other option to avoid the monthly maintenance fee is to maintain a balance of $1,500. I simply refuse to do this. It’s silly to have money hanging out in a checking account when it could be earning interest in savings account.
ING Direct
Fortunately, there are other options. For example, I have opened an ING Direct Checking Account as a replacement. I have had an ING Direct Savings Account for many years and their customer service and interest rates have far exceeded that of HSBC.
Here’s some of the facts about the ING Direct Checking Account:
· No monthly maintenance fees
· You earn interest on your balance -- Currently there is a 0.25% APY for account balances between $0 and $49,999.99. The interest rate increases if you have higher balances.
· Free Mastercard Debit Card for all purchases
· Free Online Bill Pay
· Free access at over 35,000 ATMs
· Free Postage – they will mail your paper checks for you
While the ING Direct Checking Account won’t work for everyone, it is one option that you may want to research for yourself.
Summit Federal Credit Union
If you’re interested in a more traditional checking account, another option we have in Rochester is the Summit Credit Union. Credit unions are a really good alternative to big banks. They are member owned which means that every account holder is part owner of the company. In addition, they are not-for-profit which means fewer fees. In addition, all profits are distributed to account holders in the form of dividends.
Summit Federal Credit Union offers several checking options including a free checking account. This means no monthly fees, no minimum balance, unlimited check writing, free online baking and e-statements.
Other Options
Please research these options before you sign up but according to their websites, here are just a few of the other options for free checking accounts in Rochester.
My plea to you -- don’t simply pay the fees that big banks try to force on you. Banks need to know that you have other options and the best way for them to get the message is to move your money. I personally can’t wait to walk into HSBC today to close my account!