HSBC Credit Card Cash Withdrawal

HSBC Bank Credit Card Cash Withdrawal Limit

HSBC Bank assigns a cash advance limit on every credit card they issue. The cash advance limit differs from one cardholder to another. Generally, HSBC offers 20% of the credit limit as the allowed cash withdrawal limit. But this is subject to the discretion of the bank and can vary between customers. The available cash limit is always communicated to the customer in the monthly credit card statement. HSBC reserves the right to change the cash limit as well as the credit limit from time to time, without prior intimation.

To check what your available cash limit is, please read your credit card monthly statements or get in touch with HSBC Bank. From time to time, HSBC Bank will send messages to your registered mobile number informing you of the available credit and cash limit on your card.

HSBC Bank Credit Card Cash Withdrawal Fee

A cash withdrawal fee or a cash advance fee is the fee levied by HSBC Bank if you use your credit card to withdraw cash. This fee is charged on the total amount withdrawn by you. In other words, the cash advance fee is a percentage of the amount withdrawn by you. HSBC Bank charges a cash advance fee on every cash withdrawal you make using your credit card. Currently, HSBC Bank charges a cash advance fee of 2.5% of the amount withdrawn which is subjected to a minimum of Rs.300 to Rs.500 (depending on the type of card). The cash advance fee can be changed at any time by HSBC Bank at its discretion.

Interest Charges on HSBC Bank Credit Card Cash Withdrawal

When you make a cash withdrawal using a credit card, you will incur finance charges from the date of the transaction till you settle the amount withdrawn. Finance charge is nothing but the interest rate levied on the transaction amount. The interest is charged on the basis of daily reducing balance. Therefore, it is wise to clear off the bill as soon as you can and whenever you can, even if it is in small chunks. The finance charges on credit card cash withdrawals may vary between customers.

Currently, HSBC Bank charges an interest rate of 3.75% per month and 45% per annum on all extended credit and cash advances made using their credit cards.

Reward Points on HSBC Bank Credit Card Cash Withdrawal

Though HSBC Bank has an excellent loyalty program, reward points are not applicable for cash advances made using HSBC credit card. This is mainly because cash advance facility should be used as a last resort and only when the cardholder has exhausted all other alternatives.

How to Check Your HSBC Credit Card Cash Withdrawal Limit?

To check the cash withdrawal limit of your HSBC Credit Card, follow the below-mentioned steps:

1. Log in to HSBC Online Banking. 

1. Check the credit card section for your daily ATM withdrawal limit. 

1. Use the HSBC Mobile App and access the cash withdrawal limit calculator for real-time information. 

1. Call HSBC customer support to get assistance with your withdrawal limit. 

1. You can also visit the nearest HSBC branch to inquire in person. 

How to withdraw cash using an HSBC Bank credit card?

The procedure to withdraw cash using your HSBC Bank credit card is very simple. Follow the below steps to withdraw cash using your HSBC credit card:

1. Visit an HSBC Bank ATM or any VISA ATM
2. Insert your HSBC Bank credit card in the slot provided
3. Enter your credit card PIN
4. Select your preferred language to proceed
5. Choose "Cash Withdrawal" option
6. Enter the amount you wish to withdraw and confirm the transaction

HSBC Bank Cash Withdrawal Fees and Charges

The fees and charges applicable on HSBC Bank credit card cash withdrawal facility are mentioned below: 

Pros and Cons of HSBC Bank Credit Card Cash Withdrawal Facility

As cash withdrawal transactions attract a high cash advance fee and finance charges, it is not to be used until there is a financial emergency. HSBC Bank credit card cash advance feature has its own advantages and disadvantages. So, before you decide to use this facility, it is very important to educate yourself about the pros and cons of this feature.

Pros of HSBC Bank credit card cash withdrawal facility

1. Cardholders can get instant cash through this facility. It is almost like having liquid cash in hand.
2. Cardholders do not need the approval of the bank to use the cash advance facility.
3. Cash can be withdrawn at any ATM including international ATMs.
4. The cash advance facility available on credit cards helps cardholders during a financial crisis. It comes in handy when the cardholder has exhausted all other alternatives and is in need of instant cash.

Cons of HSBC Bank credit card cash withdrawal facility

1. Cash advance feature attracts a fee. Apart from the cash advance fee, finance charges will be levied from the date of withdrawal until the amount is settled in full.
2. The interest-free period is not applicable for cash withdrawals made using the credit card.
3. A cash withdrawal transaction attracts a high rate of interest compared to other credit card transactions.
4. Overusing the cash withdrawal facility might push a cardholder to fall into the debt trap, thereby impacting your credit score negatively.

Alternatives to HSBC Credit Card Cash Withdrawals

The alternatives to cash withdrawal facility of HSBC credit card are mentioned below: 

1. HSBC Debit Card: Withdraw cash without interest or extra fees, making it the most cost-effective option. 

1. Apply for a Personal Loan: Typically offer lower interest rates than credit card cash advances, suitable for urgent financial needs. 

1. Overdraft Facilities: Eligible HSBC account holders can access funds beyond their account balance with relatively lower charges. 

1. Use Buy Now, Pay Later (BNPL) Services: Break purchases into instalments with HSBC’s BNPL options, avoiding the need for immediate cash. 

1. Peer-to-Peer Transfers: Use digital methods, such as UPI (Unified Payment Interface), NEFT (National Electronic Fund Transfer), or HSBC’s international money transfer services instead of withdrawing cash. 

Note: While HSBC credit cards offer cash withdrawal convenience, always check your daily ATM withdrawal limit and be mindful of associated fees and interest. 

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