HSBC Direct Launches 6.00% APY New Money Promotion

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 Online Savings is offering existing and new customers a 6.00% APY1 on "New Money”, the highest ever offered by an Online Savings Account (OSA) in the U.S.2 The New Money promotion begins today and will run through April 30, 2007. "Investors are becoming increasingly savings-centric,” said Kevin Newman, head of retail banking for HSBC in the U.S. "HSBC Direct is offering people a simple way to make 2007 the year to save and grow their money at an impressive 6.00% APY while still leaving their money accessible.” Despite the fact that the government has reported a negative national personal savings rate for more than a year and a half, a recent HSBC Direct Savings Survey found that a significant number of people are actually committed to saving. The survey revealed: If given $1,000, 27% of consumers would choose to put the money in a savings account Nearly 1/3 of men (31%) would choose to put the money in a savings account if given $1,000 Nearly 1/4 of women (24%) would choose to put the money in a savings account if given $1,000 32% of consumers are currently saving money for an emergency fund The concept that people are saving more is reflected in the success of HSBC Direct during the past year. With no minimums, no fees and consistently attractive high yields, investors have come to recognize the benefits of having an HSBC Direct savings account. Since its launch in 2005, more than 300,000 customers have opened HSBC Direct Online Savings Accounts that currently total approximately $7 billion in deposits. In addition, the average balance of an HSBC Direct OSA is one quarter higher than that of an average OSA3, with 85% of deposits new to HSBC Bank USA, N.A. "We are extremely pleased with the significant progress made by HSBC Direct and we remain committed to the online channel,” said Newman. "We are excited to continue to build on the momentum we’ve seen with HSBC Direct since its launch.” Additional details about the New Money promotion include: New Money is defined as new funds not previously held by any member of the HSBC Group. Only new funds deposited during the New Money Period will earn a 6.00% APY. Starting Balance means the available balance in your account as of the close of business on January 26, 2007. Only qualifying available balances above the Starting Balance are eligible for the New Money promotion. All withdrawals from an HSBC Direct account during the New Money Period will come from New Money first. Funds deposited into an HSBC Direct account are FDIC insured.4 About the HSBC Direct Savings Survey The HSBC Direct Savings Survey was conducted in October 2006 among a nationally representative sample of 1,000 adult American consumers ages 18 and over. About HSBC USA Inc. HSBC USA Inc. is the holding company for HSBC Bank USA, N.A., HSBC National Bank USA and other U.S. banking subsidiaries, which together have a U.S. branch network of more than 430 branches in nine states and the District of Columbia, with nearly 400 branches in New York State. These entities serve more than 3 million U.S. individual and corporate customers and offers a full range of banking products and services. HSBC USA Inc. is an indirectly held, wholly owned subsidiary of HSBC North America Holdings Inc., 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 a savings account with highly competitive interest rates, no monthly fees or minimum balance requirements, and external account connectivity. For more information or to open an HSBC Direct Online Savings Account, visit www.hsbcdirect.com. 1 Annual Percentage Yield (APY) is a promotional rate for New Money deposited. See www.hsbcdirect.com for full details. 2 High-Yield Savings Account rates courtesy of Bankrate.com as of 1/26/07 3 OSA balances and growth estimated by Celent, LLC; US Federal Reserve Board: Survey of Consumer Finances – National Average Online Savings Account is approximately $16,000 4 HSBC Direct Online Savings Account offered by HSBC Bank USA, N.A., Member FDIC. Deposits are insured to the maximum permitted by law.