HSBC Bank offers higher fixed deposit interest rates than their savings bank account. The interest rates range between 2.25% to 4% for regular citizens for a tenure of seven days to five years. Senior citizens get an additional 0.5% on their HSBC FD investments. There is also a premature withdrawal facility and loans against HSBC FDs. This article covers HSBC Bank FDs and their interest rates in detail.
HSBC Bank FD Interest Rates April 2021
Below is the table showing HSBC Bank FD rates for less than Rs 2 crore deposits
|Tenure||Fixed Deposit Interest Rate||Senior Citizens Fixed Deposit Interest Rate|
|Seven days to 14 days||2.25%||2.75%|
|15 days to 29 days||2.50%||3.00%|
|30 days to 59 days||2.75%||3.25%|
|60 to 89 days||2.80%||3.30%|
|90 days to 180 days||3.00%||3.50%|
|270 days to 399 days||3.10%||3.60%|
|13 months to less than 18 months||3.25%||3.75%|
|601 days to 699 days||3.30%||3.80%|
|701 days to 731 days||3.50%||4.00%|
|732 days to 35 months 29 days||3.60%||4.10%|
|18 months to 599 days||3.30%||3.80%|
|36 months to 60 months||4.00%||4.50%|
Features of HSBC Bank Fixed Deposit
HSBC FD schemes offer better returns than a savings bank account. Following are the key features of HSBC Bank fixed deposits:
The HSBC fixed deposit tenure ranges between 7 days to 5 years. Once invested, one cannot change the tenure of HSBC Bank fixed deposit investment. However, one can opt for premature withdrawal, and they can close the existing HSBC FD and start a new FD with the desired tenure.
Minimum Deposit and Maximum Deposit Amount
The minimum amount of deposit for HSBC FDs is INR 10,000. There is no limit on the maximum investment amount for HSBC FDs.
HSBC FD Interest Rates
HSBC fixed deposit rates range between 2.25% and 4% for regular citizens, and the tenure range being seven days to 5 years. However, the interest rates are subject to change.
Preferential Interest Rates
HSBC offers a preferential FD interest rate for senior citizens. The HSBC fixed deposit interest rate for senior citizens ranges between 2.75% to 4.5%. However, the interest rates on HSBC FDs are subject to change.
To open an FD account with HSBC Bank, one has to be eligible. Following are the individuals that are eligible to invest in HSBC Bank FDs.
- Resident individuals
- Non resident individuals
To open an FD account with HSBC Bank, one needs the following documents.
- ID proof (Passport, PAN Card, Voter ID, Aadhar Card, and Driving License)
- Address proof (Passport, Aadhar Card, Bank Statement with Cheque)
- Age proof (Birth certificate, Aadhar Card, Service Discharge Certificate, Voter ID)
It is not possible to deposit any additional amount in an existing HSBC fixed deposit. However, one can always invest in a fresh HSBC FD with an additional amount.
Tax and TDS
Investment in HSBC Bank Fixed Deposit does not qualify for tax saving under Section 80C of the Income Tax Act, 1961. Moreover, the interest that one earns on their HSBC fixed deposit investments is taxable as per the depositor’s income tax slab rates. Furthermore, HSBC bank deducts a TDS of 10% in case the interest income exceeds INR 40,0000 (INR 50,000 for senior citizens). The TDS rate will be 20% if the PAN Card details aren’t submitted to HSBC Bank.
To determine if the interest income from an HSBC term deposit is above or below the TDS threshold limit, one can use the HSBC fixed deposit calculator available online. Also, one can estimate their tax liability using the Income Tax Calculator. Scripbox’s Income Tax Calculator is free to use and is available online. It helps in estimating tax liability from HSBC FD investment.
Under the Deposit Insurance Scheme of RBI, DICGC insures all HSBC fixed deposits up to INR 5,00,000.
HSBC allows premature withdrawal of FD account deposits. However, these withdrawals attract a penalty of 1% on the contracted interest rate.
Depositors can nominate beneficiaries for their HSBC FDs.
HSBC offers an auto-renewal facility for deposits.
Opening and managing HSBC fixed deposit investments is easy and convenient through their online portal.
Loan against FD and Overdraft
HSBC investors can take a loan against their FDs to meet their liquidity requirements without breaking their deposit. Investors can get a loan up to 90% against their deposit amount.
Investors can take loans such as student loan, loan against property (home loan), business loans, etc., against HSBC FD. Also, one can compute and estimate their loan EMI using the loan EMI calculator. The loan EMI calculator works as a personal loan EMI calculator, home loan EMI calculator and vehicle loan EMI calculator. You can use the EMI calculator in multiple scenarios and compare the results. All you have to do is change the input variables like personal loan interest rate, home loan interest rate and car loan interest rate.
A PAN is mandatory to open an HSBC FD account. There are few implications for not disclosing PAN details. The applicable TDS rate for non-disclosure of PAN 20% instead of the usual 10%, as per the regulations of section 206AA. The HSBC Bank will not issue any TDS certificate. Furthermore, all the exemption certificates, like Form 15G and Form 15H, will be invalid.
A requirement of savings account
Individuals need to have HSBC bank savings accounts to open a fixed deposit account.
HSBC Bank FD Schemes
HSBC Fixed Deposits help investors create wealth at low risk. Also, depositors can choose from a wide range of tenure and earn attractive interests.
- Tenure: 7 days to 60 months
- Minimum Deposit Amount: INR 10,000
- Maximum Deposit Amount: No Limit
- Interest Rate: 2.25% – 4.00%, and additional 0.50% for senior citizen depositors.
- Interest Payout: Interest on deposit is payable only at the time of maturity.
- Loan Facility: HSBC bank offers loans against fixed deposits. Depositors can avail of a loan up to 90% against their deposit amount.
- Premature Closure: HSBC bank allows premature closure of the account; however, with a penalty. The interest rates are lower by 1% than the contracted rate.
- Auto-Renewal Facility: Available
- Nomination Facility: Available
Frequently Asked Questions
What is the highest FD rate for HSBC Bank?
HSBC Bank term deposit rates range between 2.25% and 4% for regular citizens and between 2.75%-4.5% for senior citizens for a tenure of 7 days to 5 years. The FD rates of HSBC Bank are higher than their savings account. Moreover, senior citizens get a higher rate of interest of 0.5% on their HSBC FDs. The interest payments will be made periodically or at the time of maturity, as per the investor’s choice.
The highest term deposit interest rate for HSBC Bank is 4% for a regular investor for the tenure of 3 years and above. For the same tenure, the senior citizen FD rate is 4.5%. Returns from HSBC Bank fixed deposits can be calculated using the fixed deposit calculator.
Does the HSBC bank offer Recurring Deposits?
No, HSBC Bank does not offer recurring deposit schemes.