Best way to invest $100k for HSBC premier account?

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cashheavy18
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Best way to invest $100k for HSBC premier account?

Post by cashheavy18 » Sat Jun 16, 2018 4:08 pm

We have an HSBC Premier account in the USA. We set this account up because of the flexibility it offers to transfer funds internationally with no fees (we have rental property & family in Europe). We find this particular service very convenient and since everything has been setup (had to go through a bit of a rigmarole setting up the local account in Europe), would like to maintain it.

To avoid the monthly $50 account maintenance fee, you need to maintain $100k worth of assets with HSBC.

From what I have researched, all of their investment vehicles have huge fees associated with them. We parked the money in a 12 month cd at .95% (matures Jan 2019).

- Does anyone have any investments at HSBC that they can recommend (if yes, what are the fees)?
- Pending a "decent" investment option, I am now thinking to just pull the money when the cd matures and pay the $50 account fee (even if I move the $100k to another cd - rates will likely be much higher at other FI's).



Thoughts?

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Pete12
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Re: Best way to invest $100k for HSBC premier account?

Post by Pete12 » Sat Dec 01, 2018 9:09 am

I too am considering putting $100k with HSBC in order to re-qualify for their Premier service. I was with HSBC premier a few years ago and if you look through my past posts you will know I fired my FA there and moved my retirement assets to index funds at Fidelity.

However I miss having the ATM fee rebates when I travel abroad and I will also be needing to open a UK checking account at some point to handle some historical/family matters.

If HSBC offers a self directed brokerage option then I would consider converting some Vanguard MF units in my taxable account to ETFs then moving them in-kind to HSBC. Then I would just let the ETFs sit there.

Anyone here have any experience with this?

cashheavy18
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Re: Best way to invest $100k for HSBC premier account?

Post by cashheavy18 » Sat Dec 01, 2018 9:56 am

After seeing a response (after so many months :wink: ), I found this online:

https://www.us.hsbc.com/content/dam/hsb ... hedule.pdf

It's still a bit shocking that places charge these kind of fees....

Would still like to hear from others on what type of strategy they've employed at HSBC.

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William Million
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Re: Best way to invest $100k for HSBC premier account?

Post by William Million » Sat Dec 01, 2018 10:12 am

Sounds like $50/month versus CD interests 1-1.5% lower than the market are about a wash. So it might not matter what you do.

I use Schwab ATM card for no fees when withdrawing $ from foreign ATMs. There are other ways to transfer $ between dollar and euro accounts.
However, you might get more out of the HSBC Premier.

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Pete12
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Re: Best way to invest $100k for HSBC premier account?

Post by Pete12 » Sat Dec 01, 2018 10:43 am

cashheavy18 wrote:
Sat Dec 01, 2018 9:56 am
After seeing a response (after so many months :wink: ), I found this online:

https://www.us.hsbc.com/content/dam/hsb ... hedule.pdf

It's still a bit shocking that places charge these kind of fees....

Would still like to hear from others on what type of strategy they've employed at HSBC.
This is good info thanks! So it looks like if you are a Premier client they waive any inactivity fee. This would work for me then as I would plan to move ETF units in and just let them sit there. I would take the dividends as cash then just reinvest as usual at Vanguard.

j0nnyg1984
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Re: Best way to invest $100k for HSBC premier account?

Post by j0nnyg1984 » Sat Dec 01, 2018 4:13 pm

I’ve looked online for the last 15 minutes and have yet to find anything helpful.

What are the benefits of having a premier account with HSBC?

cashheavy18
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Re: Best way to invest $100k for HSBC premier account?

Post by cashheavy18 » Sat Dec 01, 2018 4:54 pm

j0nnyg1984 wrote:
Sat Dec 01, 2018 4:13 pm
I’ve looked online for the last 15 minutes and have yet to find anything helpful.

What are the benefits of having a premier account with HSBC?
After initial account setup (both in US & Europe - which isn't exactly customer friendly), it is now the ease of being able to seamlessly move money from one account to another without any fees. They offer competitive exchange rates. We have an European debit card, which is very helpful in self-service machines (many that won't take US cards). We have a full checking account in Europe, to pay expenses by paper check (yes, a lot of people where we have our rental property still like paper checks).

That's the reason we're keeping the account, but would like to avoid paying $600 and/or have better low-cost investments to put the $100k in.

j0nnyg1984
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Re: Best way to invest $100k for HSBC premier account?

Post by j0nnyg1984 » Sat Dec 01, 2018 5:10 pm

cashheavy18 wrote:
Sat Dec 01, 2018 4:54 pm
j0nnyg1984 wrote:
Sat Dec 01, 2018 4:13 pm
I’ve looked online for the last 15 minutes and have yet to find anything helpful.

What are the benefits of having a premier account with HSBC?
After initial account setup (both in US & Europe - which isn't exactly customer friendly), it is now the ease of being able to seamlessly move money from one account to another without any fees. They offer competitive exchange rates. We have an European debit card, which is very helpful in self-service machines (many that won't take US cards). We have a full checking account in Europe, to pay expenses by paper check (yes, a lot of people where we have our rental property still like paper checks).

That's the reason we're keeping the account, but would like to avoid paying $600 and/or have better low-cost investments to put the $100k in.
Okay, those seem very user-demand specific, not benefits for a wider audience to take advantage of.

I currently have the top status with the BoA / Merrill Edge preferred rewards program and the benefits are substantial: large credit card reward multipliers, free safe deposit box, no atm fees, lots of extra cash back opportunities...Great package for me, but I’m always shopping around.

mrx
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Re: Best way to invest $100k for HSBC premier account?

Post by mrx » Sat Dec 01, 2018 7:24 pm

cashheavy18 wrote:
Sat Dec 01, 2018 4:54 pm
j0nnyg1984 wrote:
Sat Dec 01, 2018 4:13 pm
I’ve looked online for the last 15 minutes and have yet to find anything helpful.

What are the benefits of having a premier account with HSBC?
After initial account setup (both in US & Europe - which isn't exactly customer friendly), it is now the ease of being able to seamlessly move money from one account to another without any fees. They offer competitive exchange rates. We have an European debit card, which is very helpful in self-service machines (many that won't take US cards). We have a full checking account in Europe, to pay expenses by paper check (yes, a lot of people where we have our rental property still like paper checks).

That's the reason we're keeping the account, but would like to avoid paying $600 and/or have better low-cost investments to put the $100k in.
Isn't the seamless immediate no fee transfer available for HSBC Advance customers as well? If this is really all what you are looking for, why don't you settle with an Advance account? It's much easier to meet the bar for it.

cashheavy18
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Joined: Fri Jun 15, 2018 3:19 pm

Re: Best way to invest $100k for HSBC premier account?

Post by cashheavy18 » Sat Dec 01, 2018 7:44 pm

mrx wrote:
Sat Dec 01, 2018 7:24 pm
cashheavy18 wrote:
Sat Dec 01, 2018 4:54 pm
j0nnyg1984 wrote:
Sat Dec 01, 2018 4:13 pm
I’ve looked online for the last 15 minutes and have yet to find anything helpful.

What are the benefits of having a premier account with HSBC?
After initial account setup (both in US & Europe - which isn't exactly customer friendly), it is now the ease of being able to seamlessly move money from one account to another without any fees. They offer competitive exchange rates. We have an European debit card, which is very helpful in self-service machines (many that won't take US cards). We have a full checking account in Europe, to pay expenses by paper check (yes, a lot of people where we have our rental property still like paper checks).

That's the reason we're keeping the account, but would like to avoid paying $600 and/or have better low-cost investments to put the $100k in.
Isn't the seamless immediate no fee transfer available for HSBC Advance customers as well? If this is really all what you are looking for, why don't you settle with an Advance account? It's much easier to meet the bar for it.
Thanks for this, was not aware of this tier of account. Will have to call and inquire/verify that the International services are equivalent. If they are, then this will definitely be the route we'll go!

ICH
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Re: Best way to invest $100k for HSBC premier account?

Post by ICH » Sun Dec 02, 2018 12:49 am

One advice: do check with HSBC if investments (anything other than CDs) count towards premier status.
I believe they don't.

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Bogle the Mind
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Re: Best way to invest $100k for HSBC premier account?

Post by Bogle the Mind » Sun Dec 02, 2018 1:03 am

cashheavy18 wrote:
Sat Dec 01, 2018 4:54 pm
They offer competitive exchange rates.
Can you quantify this? What is the next best exchange rate + fee that you've found?

Have you looked into TransferWise?

If you find an international wire transfer option that's cheaper than HSBC Premier, I assume you could downgrade your HSBC accounts such that you still benefit from having the accounts.
- Bogle the Mind

cashheavy18
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Joined: Fri Jun 15, 2018 3:19 pm

Re: Best way to invest $100k for HSBC premier account?

Post by cashheavy18 » Sun Dec 02, 2018 10:12 am

ICH wrote:
Sun Dec 02, 2018 12:49 am
One advice: do check with HSBC if investments (anything other than CDs) count towards premier status.
I believe they don't.
They do count towards premier status. One of the "perks" of premier is you get "free" wealth management services, which is a very heavy sell for all of their extremely expensive investment options. Not interested.

cashheavy18
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Joined: Fri Jun 15, 2018 3:19 pm

Re: Best way to invest $100k for HSBC premier account?

Post by cashheavy18 » Sun Dec 02, 2018 10:15 am

Bogle the Mind wrote:
Sun Dec 02, 2018 1:03 am
cashheavy18 wrote:
Sat Dec 01, 2018 4:54 pm
They offer competitive exchange rates.
Can you quantify this? What is the next best exchange rate + fee that you've found?

Have you looked into TransferWise?

If you find an international wire transfer option that's cheaper than HSBC Premier, I assume you could downgrade your HSBC accounts such that you still benefit from having the accounts.
I have not used transferwise, will look at it, thank you.

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