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.