HSBC Bank IRA Review

HSBC IRA review: Bank CD IRAs, Roth IRA, Traditional IRA, rollover, Money Market IRA. HSBC Bank IRA fees, rates, APY/APR, promotion offer code for 2020. Is HSBC IRA good and safe way to invest?

HSBC IRAs and Investment Choices

HSBC Bank offers Individual Retirement Accounts (IRA) to its customers, including both traditional and Roth IRAs. Both carry the same annual contribution limits depending on your age, but differ in tax treatment and withdrawal limits.


Some individuals would like to convert their traditional IRA to a Roth IRA and HSBC offers financial advice on how to accomplish that, and will charge a $30 fee to make the conversion. HSBC also charges a $35 annual maintenance fee for standard customers, but that fee is waived for higher balance accounts. In addition, there is an inactivity fee of $50 when no trades are placed with the account for the year.

HSBC IRA Muatual Funds

Once the account has been selected and funded, the IRA can be used to manage the array of investment products offered by HSBC. They do have their own asset allocation funds that vary in scope and holdings. Their World Selection Funds require a $1,000 account minimum to purchase these HSBC managed mutual funds. The Spectrum Account is the next step up, requires a minimum of $25,000, which includes more active portfolio management, and has seven investment models to choose from. This is a nice mid range option that is more specific than fixed portfolio mutual funds, but stops short of true wealth management.

Other Investment Products

One can also invest their IRA account in fixed income assets, which include a wide assortment of bonds and CD instruments for both safety and income. Examples of fixed-income assets available are US Government Treasuries, Municipal Bonds, and corporate bonds. Each differs in interest rate and tax treatment, which can be clarified by an HSBC financial advisor.

For investor with more risk appetite, there is access to equities and ETFs that may represent movement in stock index averages, commodities or currencies. Some are more volatile than others and usually appeal to more experienced investors.

In addition to their own mutual funds, HSBC can also provide access to other funds managed by third parties. Some investors prefer the diversification and management of mutual funds for their IRA, to minimize risk and still have the opportunity for gains.

For the true conservative IRA holder, federally insured certificates of deposit are available, carrying a low interest rate, but having the assurance of principal preservation.


The IRAs are managed in a traditional broker style, which offers personalized guidance but also incurs commissions and fees. HSBC does not offer a comprehensive self managed investment platform such as is available with online brokers, with the exception of online purchases of stocks and mutual funds. The Personal Internet Banking offered to all customers gives online access to account information, as well as the limited online trading features. There is no mobile trading service available. This underscores HSBC’s culture as a full service banking institution, and not as suited to those who like to manage and trade their assets independently.

Wealth Management

HSBC does have wealth management services for large account holders. Their Managed Portfolio Account is available to customers with $250,000 or more in their investment account, which would include an IRA account. With this, one gets personalized attention and advice from one of HSBC’s financial advisors, who provide research and portfolio structure to suit one’s investment goals. Assets are allocated based on a strategy of diversification that is customized for the account holder, considering tax implications and investment horizon.

A similar service is available to HSBC Premiere Account banking customers, who maintain combined balances of $100,000 or more. The HSBC advisor for this account is called the Premier Relationship Advisor, who also reviews the whole spectrum of financial and investment goals for the customer. This account has the added benefit of avoiding maintenance or inactivity fees for IRA holders.

HSBC IRA Review Conclusion

As a financial institution, HSBC does seem to target customers who want a higher level of personalized service, and are not resistant to paying for it. Their international branch presence adds a global service line, and this bank is a popular choice among those with international banking needs. For the investor who looks for more independent investment options at a discount, HSBC would probably not be the first choice with so many brokers offering self managed account services. The bank takes a more traditional approach, and appeals to a more traditional banking and investment customer.


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