HSBC FD Rates

HSBC Bank is one of the leading financial institutions in the country. HSBC offers cleverly designed fixed deposit products, one of the country’s most sought-after financial instruments. These fixed deposit schemes are also available for NRIs, such as NRE, RFC, and FCNR fixed deposits. The bank accepts payments for fixed deposits in US Dollars (USD), British Pound Sterling (GBP), Euro (EUR), Japanese Yen (JPY), Canadian Dollar (CAD), and the Swedish Krona (SEK). 

Let’s look at the HSBC FD rate, its features, eligibility criteria, and how you can invest in an HSBC fixed deposit.

Types of HSBC Bank Fixed Deposit Schemes

HSBC bank offers fixed deposit schemes to cater to the varying needs and aim of the potential investor. Each FD scheme offered by the bank has its own features and benefits, let’s take a look at each of these in detail:

Regular Fixed Deposit

• Investors can open a regular fixed deposit either by visiting the branch, phone banking, and online banking
• The minimum deposit is Rs. 10,000
• The investment tenure ranges between 7 days to 5 years
• Both cumulative and non-cumulative fixed deposit options are available

NRE Fixed Deposit

• Applicants can invest in this scheme with amounts starting as low as Rs. 25,000
• The investment horizon ranges from 1 year to 3 years
• The interest amount and principal amount is fully repatriable

NRO Fixed Deposit

• The minimum deposit amount for this FD scheme is Rs. 15,000
• The tenure for this investment scheme ranges from 7 days to 5 years
• The deposits in this scheme are repatriable upto a limit of $1 million in a financial year
• Investors can appoint a nominee to their FD scheme
• The interest can be paid out quarterly at the time of maturity

Features and Benefits of HSBC Bank FD

HSBC Bank offers better interest rates and annual returns as compared to a regular savings account. Below are some of the main features and benefits of a fixed deposit from HSBC bank:

• Tenure

The investment tenure for a Fixed Deposit from HSBC usually ranges from 7 days to 5 years. Once the investment period has begun, the tenure for investment cannot be changed. However, the investor can always opt for the premature withdrawal facility. By doing so, the investor can close the existing FD and start a new one.

• Minimum Deposit and Maximum Deposit Amount

The minimum investment amount for an HSBC fixed deposit is Rs. 10,000. There is no maximum limit for investing in an HSBC fixed deposit scheme.

• Interest Rates

The HSBC FD rate usually ranges from 2.25% to 4% for the general public, while the tenure ranges from 7 days to 5 years.

Please note that the interest rates are subject to change at the bank’s discretion.

• Preferential Interest Rates

HSBC offers a preferential interest rate to senior citizens for their FD schemes. The interest rate for such investors ranges from 2.75% to 4.5%. However, the interest rates quoted here are subject to change at the bank’s discretion.

Eligibility Criteria for HSBC Bank FD

Given below are some of the eligibility criteria that you will have to fulfil to invest in a fixed deposit scheme from HSBC:

• The investor should be an Indian citizen
• The applicant should be an existing account holder with HSBC
• Trusts, governing bodies, and private firms are also eligible to invest in the FD scheme
• This FD scheme requires a minimum investment amount of Rs.10,000

Interest Calculation for HSBC Fixed Deposit

The HSBC FD rate for different tenure is calculated in the below-given methods:

• Fixed deposit tenure of fewer than 6 months payout simple interest upon maturity
• For a fixed deposit of tenure more than 6 months, the interest is calculated every quarter
• Cumulative interest/ reinvestment interest is calculated quarterly. The same amount is added to the principal in addition to the interest earned in the previous quarter
• For a monthly deposit scheme, the interest is computed quarterly and paid monthly at a discounted rate

Tax on HSBC Fixed Deposit

Any investment in HSBC fixed deposits do not qualify for a tax rebate as stated under Section 80C of the Income Tax Act.

Further, the interest rate earned on their HSBC fixed deposit is taxed according to the investor’s applicable tax slab.

Moreover, there is also a 10% TDS deduction if the interest earned during the investment period is more than Rs. 40,000 and Rs. 50,000 for senior citizens. If the investor does not submit their PAN details, the TDS rate will be 20%.

HSBC Bank FD Minimum/ Maximum Deposit Amount

Even though the HSBC Bank FD rate ranges from 2.50% to 6.00%, the investor must adhere to the minimum deposit criteria. The minimum deposit amount is Rs. 10,000. The customers also have the facility to increase the investment amount according to their financial standing. There is no maximum limit for investing in an HSBC fixed deposit.

HSBC Bank Fixed Deposit Returns Comparison

It is always advised that customers get familiar with the prevailing market rates before they decide on the right FD scheme for them. The comparison given below of the FD rates offered by other banks, provides an insight into why you should prefer the HSBC FD scheme:

Name of Bank/NBFC	General Citizens	Senior Citizens
IDFC First Bank FD	3.50% to 6.90%	4.00% to 7.40%
State Bank of India FD	2.90% to 5.65%	3.40% to 6.45%
Bank of Baroda FD	3.00% to 5.50%	3.50% to 6.50%
HDFC Bank FD	2.75% to 6.10%	3.25% to 6.60%
Axis Bank FD	2.50% to 6.05%	2.50% to 6.80%
IDBI Bank FD	2.70% to 5.75%	3.20% to 6.50%
Canara Bank FD	2.90% to 6.00%	2.90% to 6.50%
Kotak Mahindra Bank FD	2.50% to 5.90%	3.00% to 6.40%
Punjab National Bank FD	3.00% to 6.10%	3.50% to 6.60%

How to Open a HSBC Bank FD Account

Given below is the step by step process to start a FD account with HSBC online:

Step 1: Log into the HSBC internet banking portal.

Step 2: Click on the ‘Open Fixed Deposit’ option on the home page.

Step 3: Select the type of FD you want to invest in.

Step 4: Choose the desired investment amount and tenure.

Step 5: Click the ‘Continue’ button to open the fixed deposit account.