Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
HSBC or the Hong-Kong and Shanghai Banking Corporation is among the top private-sector banks in the country that offers many products including a wide range of credit cards. HSBC credit cards come with a plenty of benefits and features across different categories such as rewards, cashback, lifestyle, entertainment, travel, etc.
These credit cards also carry fees and charges, that includes an interest rate. The interest rate of your card is added to your transactions and is included under the ‘Total Amount Due’ in your credit card statement.
HSBC’s credit card interest rate is applicable if you have not paid your total outstanding amount or paid only a portion of your total outstanding amount as the minimum amount due.
For example, if your total outstanding amount on your card is Rs.10,000 and you paid Rs.6,000 as a partial payment. The remaining Rs.4,000 will be carried forward to next month’s statement and will attract a certain rate of interest.
If you have paid off your total outstanding amount, HSBC will not charge an interest rate on your credit card.
The interest rate of the credit cards by HSBC is calculated through the Annual Percentage Rate of APR. It is the total rate of interest applicable on your credit card per year.
HSBC Bank charges a monthly rate of interest on the due amount daily. You can calculate the Daily Periodic Rate by dividing the Annual Percentage Rate by the total number of days in the year.
For example, if the monthly interest rate charged on your HSBC credit card is 4%, the formula used to calculate the interest rate you land up paying on an average daily balance method is as follows:
Interest Rate = [(Total Outstanding Amount x 4% per month x 12 months) X number of days] / 365 days.
| HSBC Credit Cards | Monthly Interest Rate | Annual Rate |
|---|---|---|
| HSBC Cashback Credit Card | 3.49% | 41.88% |
| HSBC Smart Value Credit Card | 1.99% - 3.49% | 23.88% - 41.88% |
| HSBC MMT Platinum Credit Card | 3.3% | 39.6% |
| HSBC MMT Signature Credit Card | 3.1% | 37.2% |
| HSBC World Corporate MasterCard | 3.3% | 39.6% |
| The Corporate Gold Credit Card | N/A | N/A |
| HSBC Platinum Credit Card | 3.49% | 41.88% |
| HSBC Gold Credit Card | 3.3% | 39.6% |
| HSBC Classic Credit Card | 3.5% | 42.0% |
Interest charges on credit cards are applied not only for the inability to pay the total due amount within the due date but also on other activities and transactions. Some of them are as follows:
HSBC offers an interest-free period of up to 50 days; however, it also depends on the date of the transaction. The interest-free credit period will only be applicable if you have paid your total outstanding amount in full for the previous month.
On paying the total outstanding balance within the interest-free period, the bank will not charge you anything additional.
If you are not able to pay your total amount due, HSBC may contact you regarding non-payment, and if still not paid, your credit card may be cancelled.
The interest rate is charged by HSBC from the date of transaction date till the previous total balance is paid in full, in case your total amount due is not paid.
Yes, if you have any questions or doubts about your credit card charges, you can contact the customer care of the bank at 1800 267 3456.
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