HSBC Bank USA has introduced a checking account for corporate customers that combines Earned Credit Ratio (ECR) and credit interest.
The new HSBC Hybrid Current Account will earn interest on every dollar deposited into the account, the bank said in a press release on Thursday (May 16).
“Every organization has complex needs, and the HSBC Hybrid Checking Account provides an important solution for our customers by offsetting service fees and increasing account balances at the same time,” said Head of Global Payments Solutions, HSBC North America. said Thomas Halpin. release. “This flexible interest-bearing account maximizes yield, reduces costs, and most importantly, saves time and effort by reducing the need for multiple accounts.”
According to the release, with this new account, unused credits will not be forfeited, unlike traditional ECR accounts. Instead, this account provides businesses with both revenue credits and credit interest on their balances.
Clients set the balances that are subject to earned credit calculations by setting thresholds. Excess revenue credits will be refunded to your account. According to the release, cash balances above the ECR threshold will be subject to conventional credit interest.
In another recent move in the commercial checking account space, Pocketbook announced in March that it had selected Grasshopper to offer white-label, FDIC-insured commercial checking accounts to its small and medium-sized business (SMB) customers. did.
Pocketbook’s white-label, embedded financial solution provides payments, banking, and business tools for small and medium-sized businesses. By partnering with Grasshopper, a digital bank for the business and innovation economy, the company provided customers with secure access to commercial checking accounts.
“We are dedicated to developing the right tools for hard-working entrepreneurs to free up their precious time to grow their business and leave the rest to us,” says Pocketbook. Co-founder and CEO Brian Crumpler said in an article at the time. press release.
The launch of the HSBC Hybrid Checking Account comes about two months after it was reported that HSBC was expanding its U.S. commercial banking operations to better lend to startups.
Wyatt Crowell, head of HSBC’s U.S. commercial banking division, told Reuters on March 11 that HSBC is adding about 50 more bankers to the division to help finance startups in the technology and health care sectors. He said he plans to hire.
For all of your PYMNTS B2B coverage, subscribe to our daily B2B newsletter.
