An Update Regarding Your HSBC Online Savings Account

Dear XXXXXX,

The economic environment continues to be challenging. We are seeing lots of activity in the financial markets and from the Federal Reserve. In light of recent changes, we have updated your interest rate. Your Online Savings Account rate has been adjusted to 1.65% APY* as of March 30, 2009.

We want to reassure you that HSBC Direct continues to be one of the wisest places to save. A recent Bankrate.com article looked at savings options in the marketplace and reported:

Bankrate surveys show that the average yield for a three-month CD is 0.86 percent. Six-month CDs are paying 1.14 percent and you’ll get about 1.37 percent if you sign up for a year. Money market accounts are typically yielding 0.49 percent, and interest-bearing checking accounts, a paltry 0.16 percent.**

Your Online Savings Account currently earns you more than any of these average rates.

You made a smart decision entrusting your money to HSBC Direct. We’re part of HSBC Group, one of the most highly capitalized financial organizations in the world—which has not required capital support from the U.S. or U.K. governments.

Thanks again for saving with HSBC Direct.

Sincerely,

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

P.S.: We are committed to offering our customers a range of savings options for their various needs. For a look at our range of high–rate Online CDs, click here.

HSBC Direct deposit accounts are offered by HSBC Bank USA, N.A. Member FDIC. Deposits are insured to the maximum permitted by law.

* Annual Percentage Yield (APY) for the Online Savings Account is accurate as of 03/30/2009. APY is variable and subject to change. Minimum deposit to open is $1.00.

** “High-yield checking: A good bet.” March 24, 2009.