HSBC Bank USA has introduced a checking account for business clients that combines an earnings credit rate (ECR) with credit interest.
The new HSBC Hybrid Checking Account earns interest on every dollar deposited into the account, the bank said in a Thursday (May 16) press release.
“Every organization has complex needs, and the HSBC Hybrid Checking Account provides an important solution to our clients by both offsetting service fees and growing account balances at the same time,” Thomas Halpin, head of global payments solutions at HSBC North America, said in the release. “This flexible interest-bearing account maximizes yield, lowers cost, and most importantly, saves time and effort by reducing the need for multiple accounts.”
With this new account, unused credits are not forfeited, as they are with traditional ECR accounts, according to the release. Instead, this account provides businesses with both earnings credit and credit interest on remaining balances.
Clients target their balance for the earning credit calculation by setting a threshold amount; any excess earnings credits are credited back to the account; and cash balances above the ECR threshold earn traditional credit interest, per the release.
In another recent development in the commercial checking account space, Pocketbook said in March that it selected Grasshopper to provide its small- to medium-sized business (SMB) customers with white-labeled, FDIC-insured
