A Personal Message from Our Executive Vice President regarding Your HSBC Direct Account

Keeping you updated on rate changes.

In these challenging times, having a savings plan is more important than ever. At HSBC Direct we are committed to helping you with your savings goals by providing the best rate we can.

As you are undoubtedly already aware, there has been a general trend of reducing interest rates in the U.S. market over recent months. These changes have been influenced by the Federal Reserve moving its target interest rate down in response to developments in the economy and financial markets. Last week the Federal Reserve again reduced this key rate, by 0.75% to 2.25%.

At HSBC Direct we review our rates regularly in the context of market conditions, the federal funds rate and the overall economic environment to ensure we are providing you a competitive rate at all times. Following a further review of all of these factors, we have reduced our Online Savings Account rate by 0.50% to 3.05% APY* effective 3/20/2008.

We will continue to evaluate and respond to market changes so we can provide you with the very best rate possible over the coming weeks and months. At HSBC Direct we are committed to a direct and open relationship with you, even if we have to pass on news about reductions in our rates. We think this is fair to our customers and simply the right thing to do.

The good news is, you’re still getting a competitive rate — 7x the national savings average.** And you can feel confident knowing your savings are with HSBC Direct. We’re part of HSBC Group, one of the largest and best capitalized financial institutions in the world, with over 10,000 offices around the world and 140 years of experience helping our customers achieve their financial goals.

We sincerely appreciate your support and your saving with HSBC Direct.

Sincerely,

Kevin Martin
Executive Vice President
Head of HSBC Direct U.S.