Despite consumer confidence at an all time low, Americans continue to treat themselves

NEW YORK–(BUSINESS WIRE)–HSBC Bank USA, N.A., the U.S. banking unit of one of the world’s largest financial services companies, today announced the results of an HSBC Direct Consumer Survey which revealed that, despite consumer confidence at an all time low¹, Americans continue to treat themselves and others, with over half having “splurged” within the last month. However, 82% of respondents are aiming to save, and also recognize the control involved in saving – as one in five claimed that saving requires more discipline than quitting smoking. Respondents indicated emotions are strongly tied to spending decisions, with nearly half citing “it just feels good” as a reason for splurging.

“These findings show us how emotional some personal finance decisions can be,” said Kevin Martin, HSBC Executive Vice President and Head of Customer Marketing. “It’s clear from the survey that Americans have good intentions to save more, but at the end of the day, many are still treating themselves and others, and what’s important is achieving a balance and learning your personal way to save without sacrificing.”

Findings show U.S. consumers are still splurging and that emotion is a strong driver. For example:

• 42% have splurged on themselves within last month (21% within last week)
• 51% have splurged on someone else within last month (26% within last week)
• Top guilty pleasures included a weekend away (14%) and a trip to the movies (12%)
• 47% splurge because it “just feels good”
• 28% because “I deserve it”
• 19% because “relieves stress”
• Only 5% splurge under the justification that they “can just pay for it later”

Americans view savings as requiring discipline, but still have substantial intentions to save.

• One in five (19%) said saving regularly² requires more discipline than quitting smoking, losing fifteen pounds, or working out four times a week
• 71% have a funded savings account
• 41% claim to be trying to save more this summer than last, with 30% trying to increase savings by at least 10%
• Another 41% are trying to save at least the same

“We recognize there is a considerable amount of discipline required to save consistently,” Martin added. “However, savings is a critical part of any long term financial plan, and there are many easy ways for Americans to get into the savings habit. HSBC Direct, for example, helps make saving as convenient as possible, with a yield at 3.50% that is nine times the national savings average³. We are happy to announce that in order to continue to reward savers, we have extended this offer until September 15th.”

HSBC Direct increased the rate on their Online Savings Account to 3.50% APY⁴ earlier this summer. The original offering was scheduled to run through August 15^th but has now been extended through September 15^th. The HSBC Direct Online Savings Account features no minimums and no monthly fees, FDIC insurance⁵, recurring transfers, 24/7 online access, unlimited account connectivity, ATM access, and award-winning 24/7 customer service. For more information about HSBC Direct please visit www.hsbcdirect.com; for general savings information, as well as saving tools and calculators please visit YourMoneyCounts.com.

Methodology:

The HSBC Direct Consumer Survey was conducted online in June 2008 among a nationally representative sample of over 1,000 U.S. households. Please note sample size varies per question, as not every respondent was asked each question.

About HSBC Bank USA, N.A.

HSBC Bank USA, N.A. has more than 450 bank branches throughout the United States, with about 380 in New York state and a growing network of branches in New York, Florida, California, D.C., Pennsylvania, New Jersey, Delaware, Oregon, and Washington state. In addition, HSBC National Bank USA, a sister bank to HSBC Bank, has 15 branches across Maryland, Illinois, Connecticut and Virginia.

HSBC is the principal subsidiary of HSBC USA Inc., an indirectly-held, wholly-owned subsidiary of HSBC North America Holdings Inc. HSBC USA Inc. is one of the nation’s 10 largest bank holding companies by assets.

HSBC Direct is HSBC Bank USA’s online-only banking business that offers deposit accounts with highly competitive interest rates and no monthly fees. For more information or to open an HSBC Direct Online Savings Account, visit www.hsbcdirect.com.