HSBC Bank Canada boosts rate for online savings to market-leading five per cent for new accounts

    VANCOUVER, July 10 /CNW/ - HSBC Bank Canada has announced an introductory
interest rate of five per cent for new accounts offered through its
HSBCdirect.ca online banking service. The rate is the highest rate currently
offered by any Canadian bank for a high rate savings account.
    Tracy Redies, Executive Vice President, Personal Financial Services, HSBC
Bank Canada, said today's announcement is in response to extensive research
that pointed to a demand for this type of flexible savings vehicle.
    "We are extremely excited about this product. The Direct Savings
Account(TM) offers a high rate of interest and the flexibility that customers
tell us they want. There is no minimum balance, no monthly or transaction fees
and access to their account through one of the largest ABM networks in the
country.
    "For those out there who don't just dream but consciously plan their
financial future, we decided to offer something more attractive than GICs, but
which serves the same purpose. In fact, we believe our HSBC Direct Savings
Account will become an integral part of many customers' overall investment
planning strategies."
    People have typically used GICs for savings purposes - in a recent
survey, 40 per cent of people said they use GIC or money market accounts to
hold money before deciding when and where to invest it, and 24 per cent said
they were already doing so. However, the HSBC Direct online savings account
has a higher rate of return than 12-month GICs during the introductory period
and far more flexibility, including the ability to access your money at any
time without penalty or fee so we believe it represents an attractive option
for new clients.
    Canada's big five domestic banks currently offer an average rate of 3.45
per cent interest on a 12-month GIC with a minimum investment of $1,000.
    For a promotional period between July 10 and October 10, 2007, the
interest rate for customers new to HSBC Bank Canada who open an HSBC Direct
Savings Account will be a market-leading five per cent on balances up to $1 
million. Customers can easily link the account to their accounts at other
Canadian banks, deposit cheques and withdraw cash at over 4,100 ABMs -
Canada's 2nd largest surcharge-free ABM network. The Direct Savings Account is
an online savings account, accessed 24 hours a day, 7 days a week through
internet banking, telephone banking or an ABM.

    HSBC Bank Canada, a subsidiary of HSBC Holdings plc, has more than 170
offices and is the leading international bank in Canada. With around 10,000
offices in 82 countries and territories and assets of US$1,861 billion at 31
December 2006, the HSBC Group is one of the world's largest banking and
financial services organizations. For more information about the Direct
Savings Account visit www.hsbcdirect.ca.

For further information: Media Enquiries: Ernest Yee, Assistant Vice
President, Public Affairs, HSBC Bank Canada, [phone]; Sharon Wilks,
Senior Manager, Public Affairs, HSBC Bank Canada, [phone]