HSBC Direct Enhances Offering with New Way to Earn Higher Interest on Every Dollar, Every Day

- 2.50% APY Payment Account Maximizes Earnings on Everyday Funds -

- Instant Fund Transfers Allow for Increased Fluidity Into 5.05% APY OSA -

    NEW YORK, May 29 /PRNewswire/ -- HSBC Bank USA, N.A., the U.S. banking
 unit of one of the world's largest financial services companies, today
 announced that HSBC Direct has introduced a revolutionary way for consumers
 to grow their money with the launch of HSBC Direct's Online Payment
 Account.
     This new Online Payment Account product, with a yield of 2.50% APY(1),
 offers instant fund transfers to and from the HSBC Direct Online Savings
 Account (OSA). This allows customers to leave funds in the high-yield OSA
 longer, and fluidly manage their money so that they can maximize the value
 of every dollar, every day. Customers can also earn interest on money in
 the Online Payment Account used for everyday expenses, and then promptly
 move anything they do not spend back into high-yield savings, getting the
 most earning power from both.
     The HSBC Direct Online Payment Account gives customers access to their
 cash at any HSBC ATM, and at more than 395,000 non-HSBC ATMs nationwide(2).
 If a third party charges a customer to use their ATM in the U.S., HSBC will
 rebate up to three of these fees based on transaction date order during the
 calendar month(3). In addition to all bill pay capabilities and full
 access, the HSBC Direct Online Payment Account allows customers to link to
 an unlimited number of outside accounts and conduct an unlimited number of
 transactions. While the HSBC Direct Online Payment Account complements the
 HSBC Direct OSA, customers are not required to have an OSA in order to take
 advantage of the Online Payment Account. The HSBC Direct Online Payment
 Account is available to both new and existing customers.
     "Over the past year, the number one request we received from our
 customers was to institute a high-yield online payment account reinforced
 by the high quality of service associated with HSBC Direct. By addressing
 our customers' needs, we have developed an offering which allows them to
 instantly transfer funds between their HSBC Direct accounts, while
 continuing to earn a competitive rate, and automatically access cash for
 monthly bills and expenses," said Kevin Newman, senior executive vice
 president, personal financial services for HSBC in the U.S. "Used alone or
 in conjunction with the HSBC Direct Online Savings Account, the HSBC Direct
 Online Payment Account is a key tool to maximize earnings across all bank
 balances and manage cash so that there is never a day or dollar where their
 money does not have the opportunity to grow."
     In addition to instant fund transfers between the HSBC Direct Online
 Payment Account and OSA, key features include automatic bill pay
 capabilities, a 2.50% APY, which is nine times the average traditional
 interest-bearing checking account(4), an ATM/debit card and more.
     HSBC Direct Online Payment Account customer benefits:
       -- Instant transfers between Online Payment Account and OSA
       -- Yield of 2.50% APY
       -- ATM:
            -- Free transactions at any HSBC ATM
            -- Three completely free non-HSBC ATM transactions per month (if
               customer is charged by a third party, HSBC will rebate up to
               three of these fees based on transaction date order during
               calendar month)
            -- No fees charged by HSBC on non-HSBC ATMs
       -- No monthly fees
       -- Bill payment services
       -- Direct deposit enabled
       -- Single card can be used for ATM and Debit transactions from Online
          Payment Account and OSA
       -- Linkage to unlimited number of external accounts
       -- Unlimited account transactions
       -- 24/7 customer service via phone and email
     "As we expand HSBC Direct, we are continuing to enhance our product
 offering with saver-oriented features based on our understanding of
 customer behavior and needs," continued Newman. "The HSBC Direct Online
 Payment Account, as a complement to the HSBC Direct OSA, is a true example
 of a savings-powered proposition that was developed as a direct result of
 listening to our customers. This product will allow our customers to earn
 interest on their every dollar every day. Additionally, we will continue to
 offer our award-winning customer service initiatives with the HSBC Direct
 Online Payment Account."
     To learn more about HSBC Direct Online Payment Account, visit
 http://www.hsbcdirect.com.
     About HSBC USA Inc.
     HSBC Bank USA, N.A. has nearly 450 branches in New York State, a
 network of branches in Florida, California, Delaware, Pennsylvania,
 Washington State, Oregon and Washington, D.C. It is the principal
 subsidiary of HSBC USA Inc., an indirectly-held, wholly-owned subsidiary of
 HSBC North America Holdings Inc. HSBC USA Inc. is one of the nation's 10
 largest bank holding companies by assets.
     HSBC Direct is HSBC Bank USA's online-only banking business that offers
 deposit accounts with highly competitive interest rates, no monthly fees or
 minimum balance requirements. For more information or to open an HSBC
 Direct Online Savings Account, visit http://www.hsbcdirect.com.
     (1) Annual Percentage Yield (APY) is accurate as of 5/29/07.  APY is
      variable and subject to change.  Minimum balance to obtain open account
      APY is $1.
     (2) According to Financial Services Fact Book
     (http://www.iii.org/financial2/technology/atm/) there are currently over
      395,000 ATMs nationwide.
     (3) Rebate will be credited to customer's account on the first business
      day of the following calendar month.
     (4)According to Bankrate.com as of 4/30/07.
 
 

SOURCE HSBC Direct