HSBC Bank USA Launches Interest-Bearing Checking Account for Businesses

Group 1: HSBC Hybrid Checking Account - HSBC Bank USA has launched a new checking account for business clients that combines an earnings credit rate (ECR) with credit interest, named the HSBC Hybrid Checking Account [1] - The account allows businesses to earn interest on every dollar deposited, offset service fees, and grow account balances simultaneously, providing a flexible interest-bearing solution [2] - Unused credits in this account are not forfeited, unlike traditional ECR accounts, allowing businesses to benefit from both earnings credit and credit interest on remaining balances [2] Group 2: Client Features and Benefits - Clients can target their balance for the earning credit calculation by setting a threshold amount, with excess earnings credits credited back to the account [3] - Cash balances above the ECR threshold earn traditional credit interest, enhancing the account's utility for businesses [3] Group 3: Industry Developments - Pocketbook has partnered with Grasshopper to offer white-labeled, FDIC-insured commercial checking accounts to small- to medium-sized business (SMB) customers, indicating a trend towards embedded finance solutions in the commercial banking sector [4] - The launch of the HSBC Hybrid Checking Account follows HSBC's plans to expand its U.S. commercial banking operations, particularly in startup lending, with a focus on tech and healthcare sectors [5][6] - HSBC aims to recruit around 50 additional bankers to support its lending initiatives for startups, reflecting a strategic move to bolster its presence in the commercial banking landscape [6]