• Overview of HSBC Fixed Deposit

    The Mercantile Bank of India, London and China was founded in Mumbai in 1853 and got acquired by the Hongkong and Shanghai Banking Corporation (HSBC) Limited in 1959. The Flora Fountain building, where Mercantile Bank was based is the current Head Office of the HSBC Group in India.

    Through the 1990s, HSBC has developed and emerged as one of the leading banking and financial services organisations in the world. The bank has steadily provided banking services to Indian customers for the past 150 years and was the first bank to inaugurate an ATM in India in 1987.

    In India, the bank provides 24-hours banking services via 144 networked ATMs, a dedicated call-centre and net banking services. The bank has over 21,000 customers including companies, associations, trusts etc. in India.

    HSBC Fixed Deposits

    HSBC offers FDs that are attractive savings solutions to those with surplus funds or savings that they wish to earn fixed returns on in a safe manner. HSBCs FD schemes offer attractive interest rate which aim to maximise a depositor’s returns while maintaining liquidity.

    Eligibility - Who can open an FD account with HSBC?

    Any Indian individual or minor with KYC documents can open a fixed deposit with HSBC. In case of minor, parent/guardian will be the co-signee. HSBC FDs are also open to non-resident Indians.

    What Fixed Deposit Schemes does HSBC offer?

    Fixed Deposits are one of the most popular banking instruments for financial savings. HSBC offers Smart Money Accounts, Fixed Deposits accounts and Senior Citizen Fixed Deposit accounts.

    What is the minimum amount required to open an FD account with HSBC?

    ₹ 10,000 is the minimum amount required for opening an FD with HSBC.

    What is the maximum amount that can be deposited in an HSBC FD account?

    Deposits upto ₹ 1 crore can be opened online. However, for the maximum amount that can be deposited under FD, please contact your nearest HSBC branch.

    What is the minimum / maximum period for which funds can be held in as fixed deposits with HSBC?

    HSBC allows FDs to be opened for a minimum of 15 days and up to a maximum of 4 years.

    What is the procedure to open a fixed deposit account at HSBC?

    HSBC allows fixed deposits below ₹ 1 crore can be applied for on-line. A customer can also walk into a branch, submit the KYC documents, deposit the money and open an FD account.

    What are the interest rates offered on HSBC fixed deposits?

    Interest rates are subject to change from time to time. Please check account rules and the applicable terms and conditions and the applicable interest rates on Fixed Deposits from HSBC which are displayed at HSBC branches and on the HSBC website. Interest rates can also be compared on various third party websites like BankBazaar.com and help you make an informed choice.

    In case of cumulative deposits, a compounding interest is paid quarterly. When the deposits are less than three month’s duration, interest is calculated on the basis of daily average. The customers can choose their interest rates to be calculated quarterly or half yearly basis.

    The bank’s applicable interest rates for deposits below ₹ 1 Crore range between 4.7% and 8.5%. Interest rates vary according to the tenure chosen.

    Are FD accounts with HSBC taxable?

    Tax Deduction at Source (TDS), when due and applicable will be deducted in accordance with the provisions of the Income Tax Act, 1961 and the rules thereunder as in force. Individuals who wish to avail exemption from TDS should submit duly filled in Form 15G/15H as applicable with the bank. Such exemption from TDS will take effect from the following month of the date of submission of Form 15G/15H. A new Form 15G/15H has to be submitted for every financial year.

    What are the main features of HSBC fixed deposit schemes?

    The following are features of HSBC FDs:

    HDFC Fixed Deposits, which can be opened with ₹ 10,000 only offers high interest rate on your fixed deposits with safety. They allow you to choose the best tenure for you from a wide range as per your convenience and provide special interest rates for select tenures.

    Are loans provided against FDs at HSBC?

    In a HSBC Smart Money account, overdrafts against fixed deposits are provided.

    Does HSBC offer senior citizens special rates on their fixed deposits?

    The bank allows resident senior citizen customers to an additional interest rate of 0.5% p.a on their Fixed Deposits. A person above the age of 60 years is called a senior citizen. Senior citizens' interest rates apply only to Indian residents and on domestic deposits.

    In case of Joint accounts, Senior Citizen Term Deposit Interest Rate will apply if a person above 60 is the first holder.

    Does HSBC offer NRI fixed deposits? What are the types of NRI fixed deposits?

    HSBC offers NRI fixed deposits for non-resident Indians. Listed below are the types of NRI fixed deposits offered by HSBC.

    1. NRE account(Non Resident External Term deposit)-
    2. NRO account(Non Resident Ordinary Term deposit)
    3. FCNR account(Foreign Currency Non Resident Term deposit)
    4. RFC account(Resident Foreign Currency)

    Some of the NRI accounts are tax free and freely repatriable. Joint term deposits are allowed with NRI accounts though different accounts have different conditions as to with whom you can hold the account.

    Does HSBC allow premature withdrawals with the fixed deposit?

    HSBC allows the customer to make premature withdrawals before the completion of the fixed deposit term. The customer has to pay a pre-determined penalty fee when making a premature withdrawal. A penal rate of 1% is levied on premature withdrawals on HSBC fixed deposits. The customer earns interest lesser by 1%, from the rate that existed on the date of placement of deposit or the contractual date, whichever is lesser.

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    HSBC Fixed Deposit Reviews

    • HSBC Bank Fixed Deposit
      "wrong calculation of interest rates"
      0.5 0.5/5 "Unacceptable"
      HSBC staff wrongly pre closed my fixed deposit .. and calculated the interest rates wrongly and when asked them for clarification never got back .. even after following up with them repeatedly for more than 3 months.. would highly recommend not using their services.
      Was this review helpful? 12
      , visakhapatnam
      Reviewed on Aug 24, 2019
    • HSBC Bank
      HSBC Bank Fixed Deposit
      0.5 5.0/5 "Blown Away!"
      The Fixed deposit account from HSBC bank is good. I have opened the account with this bank as I have my salary account, credit cards and my savings account with this bank. The interest rates varies from range to range according to the amount deposited.
      Was this review helpful? 0
      , visakhapatnam
      Reviewed on Aug 06, 2015
    • HSBC Bank Fixed Deposit
      0.5 4.0/5 "Great!"
      I was holding a FD account with HSBC. I guess partial liquidation is not available with them. They took about 24 hours of time to action the request and for the money to get transferred to the account. The interest rate offered by them was 6.5% . I cannot place a request online for breaking the FD ,requested has to be made via phone banking.
      Was this review helpful? 10
      , mumbai
      Reviewed on Mar 07, 2015
    • HSBC Bank Fixed Deposit
      0.5 4.0/5 "Great!"
      I felt easier with HSBC as I had existing relationship with them. Fixed deposit services is extremely good and far more better than other banks. Rate of interest is 8.5% for 1 year of time where I would renew on a yearly basis.
      Was this review helpful? 7
      , new delhi
      Reviewed on Dec 18, 2014
    • HSBC Bank Fixed Deposit
      0.5 5.0/5 "Blown Away!"
      HSBC is the one who offers maximum rate of interest for fixed deposit and there are no hidden charges. Main feature in Fixed deposit is that we can break the plan in middle of the tenor and HSBC never charge anything. HSBC is giving compound interest for fixed deposit and I availed it for 5 years. Entirely, I am satisfied with HSBC. Rate is 9% for fixed deposit.
      Was this review helpful? 6
      , faridabad
      Reviewed on Nov 18, 2014
    • HSBC Bank Fixed Deposit
      "Quite good!!!!!!!!!"
      0.5 3.0/5 "Satisfactory"
      It would be really nice if hsbc bank may provide the interest rates for different types of tenure. Currently they are having longer period where they provide higher interest rate. I would expect if they may implement the multiple break ups to get better return for fixed deposit account
      Was this review helpful? 4
      , bangalore
      Reviewed on Sep 18, 2014
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