“Tough economic times are changing the way Americans manage their finances. Our survey findings showed a renewed focus on savings and a realization that curbing superfluous spending is a necessity, with more than four out of five respondents wanting to increase the amount they save, ” said Michael Prebenda, senior vice president and global head of HSBC Direct. “The data uncovered a commitment to cutting back, with nearly two out of three consumers intending to reduce indulgent spending in 2008. ”

Key survey findings include:

In addition, as a roller coaster stock market fuels uncertainty among investors cash products are increasingly being viewed as a safe haven.

“The data revealed a clear attraction to those secure investments such as cash, in this tumultuous environment, ” Prebenda added. “As Americans strive to save more and look toward cash products to help them do so, HSBC Direct continues to be committed to meeting the needs of savings-centric customers with our savers ’ suite of products. ”

Recession worries appear to be causing investors to reallocate their personal portfolios, with an increased focus on cash:

• Almost one in four respondents (24%) are likely to raise cash asset allocations in 2008
• By comparison, only 6% of respondents intend to raise allocations to bonds
• Respondents were three times as likely to save their money, 40%, rather than invest it, 14%, when asked what they would do with an unexpected $1,000
• While one in ten, 11%, opened a high-yield savings account in 2007, more than one in four, 28%, say they are likely to open one in 2008

HSBC Direct offers a variety of ways for customers to grow all of their savings faster, including the HSBC Direct Online Savings and Online Payment Accounts, which feature high yields with no minimums and no fees, unlimited account connectivity, instant transfers between HSBC Direct Online Savings and Online Payment Accounts, ATM access, recurring transfer options, and award-winning 24/7 customer service. HSBC Direct also offers six and nine month Online CDs, as an additional means to help savers continue to maximize their savings at all times.

Methodology:

The HSBC Direct Consumer Survey was conducted online in December, 2007 among a nationally representative sample of over 1,700 U.S. households. Please note, sample size varies per question, as not every respondent was asked each question.