Rates:

The Online Savings Account from HSBC offers you high interest rates and a range of fee-free banking options^ to suit your everyday banking needs. Not surprisingly, it has been named the Gold Winner of Money Magazine's Best of the Best Award - Best e-Transaction Account (Bank) for two years running!

* Interest rates paid:

$0 - $4,999 = 0.05% p.a.
$5,000 - $499,999 = 3.25% p.a.
$500,000+ = 4.50% p.a. 

HSBC Online Savings Account - Compare Your Bank Overview

With the recent rises in interest rates now is a time to be saving your money rather than borrowing. While borrowers are forking out more on loan and mortgage repayments, investors can cash in on higher interest rates, especially on online savings accounts.

If you want to take advantage of a high interest rate while having the flexibility to access your money at the same time you could consider a HSBC bank account. This account won Money Magazine's 'Best E-Transactions Account' award for 2007 and 2008, so it is definitely worth checking out.

To start with, the interest rates are good. So long as you can deposit a minimum of $5,000, you can start earning 3.25 per cent per annum on your savings immediately. This rate applies to savings  up to $499,999. If you have $500,000 or more in your account you earn 4.50 per cent per annum. This is a very competitive interest rate for an online savings account.

While many online savings accounts pay you interest but charge you fees at the same time, the HSBC Online Savings Account allows you to take advantage of free transactions. First, there is no monthly account maintenance fee. You get five free ATM withdrawals per month at any ATM, and unlimited withdrawals at HSBC ATMs. You also get unlimited Free BPAY, EFTPOS and Bank@Post transactions. As you would expect from an online account, internet and telephone transactions within Australia are free.

Other features of the HSBC bank account include a cheque book option and free automated telephone banking access. Also, interest on your account is calculated daily on your account so you get the most from your deposits.

While HSBC offers a quality online savings account here, there are some things to watch out for. While many of the fees are waived, be aware of the fees that HSBC does charge. For example, if you go over your five withdrawal per month limit at non-HSBC ATMs, you will have to pay $2 per transaction thereafter. Also, cheque payments incur a fee of $1 per payment.

It is worth bearing in mind that you need to deposit a minimum of $2,000 to open an account. There is no minimum balance after opening but you really don't get the most out of this account unless you have $5,000 or more deposited as only 0.05 per cent interest per annum is payed on deposits up to $4,999. So try not to let it slip below the $5,000 mark. Also, there doesn't seem to be a debit card option attached to this account.

However, all in all HSBC is offering a good product here. If you are aware of the few fees that are attached to this account, and you can keep your balance over $5,000, you are onto a winner.

As you would expect, you can apply for a HSBC Online Savings Account online, or you can drop into any branch and arrange one there.

Disclaimer: Compare Your Bank overview provided for information only and does not act as financial advice.