HSBC Bank FD Interest Rates 2020
HSBC Fixed Deposit Rates
| Tenure | FD Rates | Senior Citizen FD Rates |
|---|---|---|
| 7 days to 14 days | 3.00% | 3.50% |
| 15 days to 29 days | 3.05% | 3.55% |
| 30 days to 59 days | 3.25% | 3.75% |
| 60 days to 89 days | 4.00% | 4.50% |
| 90 days to 93 days | 4.75% | 5.25% |
| 94 days | 4.75% | 5.25% |
| 95 days to 269 days | 4.75% | 5.25% |
| 270 days to 364 days | 4.75% | 5.25% |
| 365 days | 4.75% | 5.25% |
| 366 days to 399 days | 4.75% | 5.25% |
| 400 days | 5.00% | 5.50% |
| 401 days to 17 months 29 days | 5.00% | 5.50% |
| 731 days | 5.35% | 5.85% |
| 732 days to 35 months 29 days | 5.00% | 5.50% |
| 18 months to 730 days | 5.25% | 5.75% |
| 36 months to 36 months 29 days | 5.50% | 6.00% |
| 37 months to 48 months | 5.00% | 5.50% |
| 48 months to 60 months | 5.00% | 5.50% |
- The above rates are applicable for deposits of below Rs. 1 crore. Check FD rates of all banks in India
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HSBC Bank FD
HSBC Bank offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. A customer is required to make a deposit once into their FD account at the time of opening the account with the bank. The customer is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit. Fixed Deposits of HSBC Bank have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in HSBC Bank are:
HSBC Bank Fixed Deposit Rates
FDs are attractive financial instruments for depositors looking for attractive returns and high safety. HSBC Bank FD interest rates range from 3.00% p.a. to 4.75% p.a. for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term HSBC Bank FD rates for senior citizens range from 3.50% to 5.25% p.a.
Always, compare tenure wise FD rate of banks to choose the FD rate at which the bank offers the highest fixed deposit interest rate and if possible, opt for FD with highest interest rate. HSBC Bank FD rates are the highest for the deposits with a tenure of 36 months to 36 months 29 days, wherein the FD rate of interest is 5.50% p.a
HSBC Bank FD interest rates for long term deposits with tenure of 5 years to 60 months offer good returns. HSBC Bank fixed deposit rates for deposits with a tenure of 60 months is 5.00%. Senior citizen are offered deposit rates of 5.50% p.a. for long termed FDs.
Important Factors of HSBC Bank Fixed Deposit
HSBC Bank offers best FD rate of 5.50% on term deposits for a tenure of 36 months to 36 months 29 days. The bank offers special interest rate on FD for senior citizens. Current HSBC Bank FD rates for senior citizens range from 3.50% to 6.00%. Fixed Deposits rates of HSBC Bank are a function of many factors such as monetary policies of RBI, economic growth rate, credit demand and liquidity position of the bank.
The factors affecting Fixed Deposit interest rates are as follows:
Policies Framed by RBI – As per RBI guidelines, the change in Cash Reserve Ratio (CRR) and repo rate affects the interest rate of all banking instruments including the fixed deposit.
Recession – Recession results in a decrease in the interest rate offered on fixed deposit. At the time of recession, RBI is forced to release the funds in the market which it achieves by lowering the rates on cash reserve of the banks and hence, providing them with additional liquidity. As a result of high liquidity and low credit demand, banks reduce the rates on FD.
Inflation – Inflation has a positive effect on a fixed deposit interest rate. Banks typically fix interest rates of FD in a manner that it is higher than the existing inflation rates. Hence, FD rates tend to be higher in a period of rising inflation.
Current State of Economy – Economic condition of the country is the major factor that affects the fixed deposit interest rate. In a booming economy, people need and are willing to take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through fixed deposits.
HSBC Bank Fixed Deposit Scheme
HSBC Bank FD Calculator
HSBC Bank fixed deposit calculator helps you to calculate maturity value of your deposited amount at the interest rate offered compounded at quarterly. The amount of fixed deposits, interest rates on FD, deposit tenure and compounding frequency of interest together determine the maturity amount of the FD at the end of the tenure.
- Deposit amount – This is the initial amount deposited by a customer in HSBC Bank. Bank may allows higher interest rate on larger deposits. HSBC Bank offers deposit amount in the range of to .
- Rate of Interest - Interest rate is the rate charged by the bank on your fixed deposit. HSBC Bank offers a higher rate of interest on fixed deposits of longer tenure and lower interest rate on deposits of less than a year. Highest interest rate offered by HSBC Bank is 5.50% for deposit amount below Rs. 1 crore corresponding to a deposit tenure of years months days to years months days .
- Interest Compounding Frequency - This determines the frequency at which interest is compounded. Compounding frequency can be monthly, quarterly, half yearly or annual frequency.
Illustration: : Mr. A opens a FD account of Rs. 1 lakh with a tenure of 7 Days at an interest rate of 3.00 %. In this case, the maturity amount at the end of 7 Days will be Rs. 100,057 which includes the principal of Rs. 1 lakh and interest of Rs. 57 is earned on the principal amount during the period. Similarly, you can calculate the interest and maturity amount for higher tenures by using FD calculators.
HSBC Bank calculates quarterly interest on its fixed deposits.
FD in HSBC Bank – Premature Withdrawal
Premature closure of Term Deposit with HSBC Bank is along with the lower interest rate of 1% than the contracted rate. The penal provisions for premature closure on HSBC Bank FD are subject to change from time to time and may also vary with deposit schemes.
Loan against Fixed Deposit HSBC Bank
HSBC Bank offers loan up to 90% against its own deposit. Note that HSBC Bank will not give you loan against FD of any other bank. HSBC Bank offers Loan against FD at the rate of 4% to 6.5%
Maximum loan tenure is restricted up to the maximum tenure of the FD.
Illustration - Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in HSBC Bank. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 90% against his FD at 10% interest rate. Now, if the borrower draws Rs. 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 90,000 availed for 1 month only. The amount he repays after 1 month is Rs. 90,744. So, the interest charged on the loan taken is Rs. 744.
HSBC Bank Fixed Deposit during Coronavirus
RBI has announced a repo rate cut of 75 bps in response to coronavirus lockdown. In response to this rate cut, HSBC Bank may reduce FD rates in the near future which could adversely impact the interests of fixed depositors.
FAQs on HSBC Bank Fixed Deposit
You can earn a maximum interest of 5.50% on HSBC Bank fixed deposit.
Are there any special rates for senior citizens FD of HSBC Bank?Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 3.00% to 5.50%. Compared to this, the rate of senior citizens FD are in the range of 3.50% to 6.00%.
What is the tenure range for HSBC Bank Fixed Deposit?The tenure for HSBC Bank Fixed Deposit ranges from 7 days to 5 years.
Can I deposit additional amount in my FD account?No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.
Who is eligible for opening an FD account in HSBC Bank?All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.
Is it possible to change the tenure of my existing fixed deposit account with HSBC Bank ?No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.
What are the implications of opening an FD bank account without having PAN?Following are the implications for the customers opening an FD account with HSBC Bank without their PAN card
- TDS will be deducted at the rate of 20% as against 10% under section 206AA
- NO TDS credit from the Income Tax department
- NO TDS certificate will be issued
- Form 15G/H and other exemption certificates will be invalid and penal TDS will apply
Current interest for FD in HSBC Bank ranges between 3.00% - 5.50%. For senior citizens the interest rates ranges bweteen 3.50% - 6.00%.
Can a customer open a FD account online in HSBC Bank?Yes, you can submit your application for opening a FD account on the website of HSBC Bank. After submitting the application, you will be contacted by the bank’s representative for further process.
What is cumulative FD and traditional FD?In cumulative FD the interest amount calculated each month is added with the principal balance to calculate the interest for next month. This means that each month’s interest amount becomes the part of the invested sum next month. However, in the case of traditional FD, the interest for each month is calculated on the originally invested sum, and it paid monthly as well.
