News Release

HSBC Online Savings Account Goes National With 4.00%* APY

Account from one of the world’s largest financial services companies has no monthly fees or minimum balance

8 November 2005

NEW YORK - HSBC Bank USA, N.A., the U.S. banking unit of one of the world’s largest financial services companies, (NYSE: HBC) today announced the national launch of its HSBC Online Savings Account, a savings account with a 4.00% APY*, six times the national average.** The account has no minimum balance or monthly maintenance fees.

“We’re providing customers with an easy-to-use, flexible, safe and rewarding way to save,” said Martin Glynn, president and chief executive officer of HSBC Bank USA. “We’re thrilled to help Americans save more with one of the industry’s highest savings rates.”

The national rollout of HSBC’s Online Savings Account comes at a time when Americans’ savings are dwindling. The personal savings rate, as measured and reported by the U.S. Commerce Department, has been steadily declining and hovering near record lows for several months. Eighty-one percent of respondents in a recent survey conducted by the HSBC Center for Consumer Advocacy said they are at least somewhat concerned with their level of personal savings and 29 percent said they have no money saved for an emergency.

Consumers interested in opening an account can visit http://www.HSBCDirect.com to fill out an online application and fund accounts with electronic transfers from any U.S. checking or savings account, whether held at HSBC or another institution. With recurring transfers, customers can create and stick to a savings plan by pre-scheduling automatic deposits into their HSBC Online Savings Account.

The HSBC Online Savings Account extends the bank’s U.S. reach beyond the seven states and the District of Columbia where it currently has retail branches.

“HSBC is taking the world’s local bank to customers throughout the United States,” said Kevin Newman, senior executive vice president and head of personal financial services for the HSBC in the U.S. “People have been entrusting their savings to HSBC in the U.S. and around world for more than 150 years. This high-yielding savings account reflects the bank’s commitment to deliver convenient and value-oriented financial products to customers throughout the U.S.”

Customer funds on deposit at HSBC Bank USA, N.A., including those in the HSBC Online Savings Account are insured by the FDIC up to the maximum permitted by law.  Around the world, HSBC Holdings has 9,700 offices in 77 countries and territories and offers a range of high-rate savings accounts in different countries.

For more information on HSBC’s Online Savings Account or to open an account, visit http://HSBCDirect.com.

About HSBC Bank USA, National Association

HSBC Bank USA, N.A. has nearly 400 branches in New York State, a network of branches in Florida and California and one branch each in Delaware, Pennsylvania, Washington State, Oregon and Washington, D.C. It is the principal subsidiary of HSBC USA Inc, an indirectly held, wholly owned subsidiary of HSBC North America Holdings Inc., one of the nation's 10 largest bank holding companies by assets.

For more information about HSBC Bank USA and its products and services visit http://us.hsbc.com.

* Annual Percentage Yield (APY) is accurate as of 11/2/05. The rate may change after the account is opened. Minimum balance to obtain APY is $1.00. Minimum deposit required to open the account is $1.00. Fees may reduce earnings on the account.

** National savings average courtesy of Bankrate.com as of 11/1/05

Media Contacts

• Stephen Cohen
• stephen.e.cohen@us.hsbc.com
• Director, Group Public Affairs
• HSBC Bank USA, N.A.
• (212) 525-6901