HSBC Term Deposit Rates

If you’re looking for a way to invest money for a set period at a fixed interest rate, then you might be interested to learn more about HSBC’s term deposits.

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What terms are available on HSBC term deposits?

According to HSBC, it offers term deposits with terms (the length of time your money is deposited) typically ranging from a minimum of one month to a maximum of five years.

You can use Canstar’s term deposit calculator to help you work out what term length might be suitable. One factor to consider is that longer terms typically come with higher interest rates, but you may have to wait longer to access the maximum interest rate that can come with reaching the maturity date.

When deciding on a term deposit, it’s a good idea to carefully consider the length of the investment term, as some products may charge a fee and require a certain notice period if you need to access your money early.

When is interest paid on HSBC term deposits?

HSBC’s term deposits offer customers the choice of receiving interest payments at the following frequencies:

  1. Monthly
  2. Quarterly
  3. Annually
  4. At maturity

It’s worth remembering that the option you select may have an impact on the rate of interest you earn.

Canstar’s term deposit calculator can help you decide how you can maximise the interest paid on your term deposit.

Does HSBC have a notice period and charge an early withdrawal fee for withdrawals?

HSBC requires you to provide notice of 31 days if you need to access your money early.

HSBC charges an early withdrawal fee of $30 and applies an interest rate adjustment if you withdraw your money before the end of the term.

HSBC’s website and Product Disclosure Statement provide more information on any interest adjustments or other early withdrawal penalties that may apply.

Does HSBC charge any other fees for term deposits?

At the time of writing, no additional fees were listed by HSBC in relation to its term deposits. 

For current information on fees and how they apply, please check the Product Disclosure Statement or contact HSBC.

How to apply for a HSBC term deposit

Before applying for a HSBC term deposit, aim to first compare it against other term deposits on the market to ensure it is the right one for you.

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If applying, consider HSBC’s eligibility criteria (below) and what you might need to have on hand, such as:

  • Your TFN (Tax File Number)
  • Proof of ID, such as your driver’s license or passport
  • Personal details, including your residential address, contact information and potentially information on your current job

If you’re applying for a term deposit on behalf of a business, self-managed super fund or other type of entity or organisation, you may need to supply different documents to those listed above. The terms and conditions that apply to your term deposit may be slightly different.

Only existing HSBC customers can apply for a term deposit online – new customers need to visit a local branch or call 1300 308 008.

Eligibility criteria

According to HSBC, when applying for a term deposit, you will need to meet the following eligibility criteria:

  • You must be at least 18 years old
  • You must be an Australian resident
  • You must be investing a minimum deposit of $5,000
  • You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)

What happens to a HSBC term deposit when it reaches maturity?

According to HSBC, when a term deposit reaches the end of its term HSBC will reinvest the funds into a term deposit of the same term length at the prevailing interest rate, unless you provide them with at least two days of notice.

About HSBC

HSBC was founded in 1865 in Hong Kong to finance trade between Asia and Europe. 100 years later, they moved to Australia and gained their commercial banking licence in 1986. HSBC is now one of the world’s largest banking and financial institutions, serving 48 million customers around the globe, via 6,000 offices in 71 countries. 

Written by: Maddie Clarey | Last updated: November 8, 2018