HSBC Direct Announces Online Savings Rate Increase to 3.50%

Business Wire,  June 2, 2008  

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High Rate Rewards Savers on New and Current Funds

NEW YORK -- 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 increased the rate for existing and new Online Savings Account customers to 3.50% APY1 on all funds - both new and current. The offering rewards savers with a rate that is nine times the national savings average, and is up from 3.05% APY. The increased rate is effective as of today, and will run through August 15, 2008.

"We are committed to helping our customers get the most from their money, and we constantly look for ways we can reward them," said Kevin Martin, executive vice president and head of HSBC Direct U.S. "Increasing our HSBC Direct Online Savings Account to 3.50% -- when other savings rates have been falling -- gives new and existing customers an even better reason to start saving more."

Key features about the offering include:

* Great new rate on new and existing money is nine times the national savings average2.

* Increased rate is available through August 15th, so the sooner customers deposit, the faster their money will grow.

* Offering is available to existing and new HSBC Direct customers with an HSBC Direct Online Savings Account.

* Funds deposited into an HSBC Direct account are FDIC insured3.

* HSBC Direct is part of the global HSBC Group, which was ranked number one by Forbes in their annual Global 2000 ranking4.

In conjunction with the rate increase, HSBC Direct also launches a new advertising campaign. The campaign reintroduces the brand's classic "piggy" character, and will begin running nationally on television and online today.

Since the launch of HSBC Direct in 2005, customers have opened more than 700,000 HSBC Direct Online Savings Accounts. Accounts can be opened online at www.hsbcdirect.com; visit the site for full details.

About HSBC Bank USA, N.A.

HSBC Bank USA, N.A. has more than 450 bank branches throughout the United States, with about 380 in New York state and a growing network of branches in New York, Florida, California, D.C., Pennsylvania, New Jersey, Delaware, Oregon, and Washington states. In addition, HSBC National Bank USA, a sister bank to HSBC Bank, has 15 branches across Maryland, Illinois, Connecticut and Virginia.

HSBC 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 and no monthly fees. For more information or to open an HSBC Direct Online Savings Account, visit www.hsbcdirect.com.

1 Special Online Savings 3.50% Annual Percentage Yield (APY) is accurate through 08/15/2008. Minimum balance to open is $1.00. HSBC reserves the right to change or terminate this promotion at any time. Any change or termination will not affect existing customers who took advantage of the promotion. After promotion period interest rate and APY are variable and subject to change.

2 National Statement Savings Average located at http://bankrate.com/brm/publ/passbk.asp?caret=2 in the Passbook/Statement Savings survey results as of 04/09/08 courtesy of Bankrate.com. HSBC Direct Online Savings Account APY is 9 times the national statement savings average APY. Interest Rate and APY are variable and subject to change at any time.

3 HSBC Direct Online Savings Account offered by HSBC Bank USA, N.A., Member FDIC. Deposits are insured to the maximum permitted by law.

4 Forbes annual Global 2000 ranking, issued 4/21/08.

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