Latest HSBC Bank FD Interest Rate April 2023
HSBC FD rates range from 2.85% to 7.50% for general depositors and 3.35% to 8% for senior citizens. These FD rates are applicable for deposits below ₹2 crore. The minimum tenure for FDs is 7 days while the maximum is 5 years.
Other than regular fixed deposits, HSBC also offers an array of term deposit products for NRIs (Non-Resident Indians).
HSBC Fixed Deposit Interest Rates 2023 Highlights
| Interest Rate | 2.85% to 8%** |
| Tenure | 7 days – 5 years |
| Minimum Deposit | ₹10,000 |
| Maximum Deposit | No upper limit |
**Includes senior citizen interest rates
How to Calculate HSBC FD Interest Rate?
HSBC FD interest rates can be calculated via two methods – the simple interest method and the compound interest method.
HSBC FD Interest Rate – Simple Interest Calculation
Simple interest is the method of calculating interest in which the rate of interest is charged flat on the principal amount.
Here’s the formula for simple interest calculation:
Simple Interest (SI) = (P * R * T)/100, where
P = Principal amount invested
R = Rate of interest (%)
T = Time
For example, you have invested a sum of ₹10 lakh for 10 years at interest rates of 5% per annum. Therefore, in our case the Principal (P) = ₹10 lakh, Rate (R) = 5% per annum, Time (T) = 10 years
Simple Interest= (10,00,000*5*10)/100 = ₹5,00,000
Therefore, after 10 years the maturity amount will be ₹10,00,000 + ₹5,00,000
Maturity Amount = ₹15,00,000
HSBC FD Interest Rate – Compound Interest Calculation
The other method used is compound interest. In this method, the interest earned is added to the principal amount and the cumulative amount is again charged with the interest rate. This process continues during the entire tenure.
Here is the formula used to calculate compound interest:
Maturity Amount (A) = P (1+r/n) ^ (n*t), where
- A = Maturity amount
- P = principal amount invested
- r = Interest rate (In decimals)
- n = Number of compounding in a year
- t = Number of years
Let us use the above example to understand the concept of compound interest. For instance, you have invested ₹10,00,000 for 10 years at an interest rate of 5% per annum compounded quarterly.
Here,
- Principal (P)= ₹10,00,000
- Interest rate (r)= 5% (In decimals)
- Number of compounding per quarter= 4 times each year
- Tenure of investment = 10 years
Maturity Amount (A) = 10,00,000 (1+0.05/4) ^ (4*10)
Maturity Amount (A) = ₹16,43,619
However, manual calculations are complex and may leave room for errors. A better alternative would be using the HSBC Fixed Deposit Calculator.
Factors Affecting HSBC Fixed Deposit Interest Rate
Listed below are some of the factors affecting HSBC Bank fixed deposit rates:
1. Deposit Tenure
Banks generally offer higher interest rates on fixed deposits if you opt for a longer tenure compared to shorter tenures. For example, HSBC FD rates for 9 – 14 days is 3% whereas 36 months to 37 months is 7%.
2. Invested Amount
The amount you are investing is also a factor on which the interest rate depends. For example, the HDFC FD interest rate for deposits above ₹2 crore is different from the rates on deposits of ₹3 crore to ₹3.5 crore.
3. Economic Condition
The economic condition of India also impacts the FD interest rates, especially if there are any changes in the monetary policies and the fiscal policies of the central bank. For example, interest rates could be raised by the RBI during periods of inflation, resulting in higher interest income for FD investors.
4. Age
The age factor of the investor also affects the FD interest rates. Banks offer a higher rate of interest to senior citizens as compared to the general public. HSBC offers a 0.50% higher interest rate to senior citizens compared to normal rate.
HSBC FD Interest Rate for General Public
Fixed deposit interest rates depend on the tenure and amount of your investments. The below table shows the HSBC fixed deposit rates applicable to the general public. Here, two different rates are applicable for deposits below ₹2 crores and deposits of more than ₹2 crores but less than ₹10 crores.
| Tenure | Interest on Deposits Below ₹2 Crore | Range of Interest on Deposits Above ₹2 Crore but less than ₹10 Crore |
| 7 days to 8 days | 2.85% | 2.85% to 6.47% |
| 9 days to 14 days | 3.00% | 3% to 6.55% |
| 15 days to 29 days | 3.00% | 3% to 6.45% |
| 30 days to 59 days | 3.40% | 3.40% to 6.10% |
| 60 days to 89 days | 3.60% | 5.30% to 6.85% |
| 90 days to 93 days | 3.80% | 5.30% to 5.60% |
| 94 days | 3.80% | 5.30% to 5.85% |
| 95 days to 179 days | 4.00% | 5.30% to 5.40% |
| 180 days | 4.50% | 5.30% to 5.40% |
| 181 days to 269 days | 3.25% | 5.30% to 5.40% |
| 270 days to 364 days | 3.70% | 5.30% to 5.40% |
| 365 days | 4% | 5.30% to 5.40% |
| 366 days to 399 days | 4% | 5.30% to 5.40% |
| 400 days | 3.25% | 2.95% to 6% |
| 401 days to less than 18 months | 6.25% | 6.25% to 6.50% |
| 18 months to 599 days | 4.10% | 3% to 4.25% |
| 600 days | 3.75% | 3.45% |
| 601 to 699 days | 3.30% | 3.00% |
| 700 days | 3.75% | 3.45% |
| 701 days to 730 days | 4.25% | 3.20% |
| 731 days | 4.25% | 3.20% |
| 732 days to less than 36 months | 7.50% | 7.70% to 8% |
| 36 months to less than 37 months | 7.00% | 5.50% to 6.75% |
| 37 months to less than 48 months | 6.00% | 4% to 6.80% |
| 48 months to 60 months | 6.00% | 4% to 7.20% |
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HSBC FD Interest Rate for Senior Citizens
The following table shows the HSBC bank FD rates for senior citizens. Senior citizens are eligible for a 0.50% higher interest rate than the general public.
| Tenure | Interest on Deposits Below ₹2 Crores | Interest on Deposits Above ₹2 Crores but Less Than ₹10 Crores |
| 7 days to 8 days | 3.35% | 3.35% to 6.97% |
| 9 days to 14 days | 3.50% | 3.50% to 7.05% |
| 15 days to 29 days | 3.50% | 3.50% to 6.95% |
| 30 days to 59 days | 3.90% | 3.90% to 6.60% |
| 60 days to 89 days | 4.10% | 5.80% to 7.35% |
| 90 days to 93 days | 4.30% | 5.80% to 6.10% |
| 94 days | 4.30% | 5.80% to 6.35% |
| 95 days to 179 days | 4.50% | 5.80% to 5.90% |
| 180 days | 5.00% | 5.80% to 5.90% |
| 181 days to 269 days | 3.75% | 5.80% to 5.90% |
| 270 days to 364 days | 4.20% | 5.80% to 5.90% |
| 365 days | 4.50% | 5.80% to 5.90% |
| 366 days to 399 days | 4.50% | 5.80% to 5.90% |
| 400 days | 3.75% | 3.45% to 6.50% |
| 401 days to less than 18 months | 6.75% | 6.75% to 7% |
| 18 months to 599 days | 4.60% | 3.50% to 4.75% |
| 600 days | 4.25% | 3.95% |
| 601 to 699 days | 3.80% | 3.50% |
| 700 days | 4.25% | 3.95% |
| 701 days to 730 days | 4.75% | 3.70% |
| 731 days | 4.75% | 3.70% |
| 732 days to less than 36 months | 8.00% | 8.20% to 8.50% |
| 36 months to less than 37 months | 7.50% | 6% to 7.25% |
| 37 months to less than 48 months | 6.50% | 4.50% to 7.30% |
| 48 months to 60 months | 6.50% | 4.50% to 7% |
HSBC FD Interest Rate for NRIs
HSBC bank has different types of fixed/term deposit accounts for non-resident individuals (NRIs) which are as follows:
- NRE Deposit Account
- NRO Deposit Account
- FCNR Deposit
- RFC Deposit
The interest rates for these NRI deposits are given in the following sections:
HSBC NRE Interest Rate
Non-Resident External (NRE) term/fixed deposit accounts are special types of FD accounts designed for NRIs to hold their earnings generated from foreign countries in India. You can earn up to 7.65% on your HSBC NRE deposit. The following table shows the HSBC India NRE FD rates.
| Tenure | Interest on Deposits Below ₹2 Crores | Interest on Deposits for ₹2 Crores and Above |
| 365 days | 4% | 2.80% |
| 366 days to 399 days | 4% | 2.80% to 5% |
| 400 days | 3.25% | 2.95% |
| 401 days to less than 18 months | 6.25% | 2.95% to 6.90% |
| 18 months to 599 days | 4.10% | 3% |
| 600 days | 3.75% | 3.45% |
| 601 to 699 days | 3.30% | 3% |
| 700 days | 3.75% | 3.45% |
| 701 to 730 days | 4.25% | 3.20% |
| 731 days | 4.25% | 3.20% |
| 732 days to less than 36 months | 7.50% | 3.30% to 7.65% |
| 36 months | 7.00% | 3.70% to 7% |
1. HSBC NRO FD Interest Rate
A Non-Resident Ordinary (NRO) account is a type of term/fixed deposit account specially designed for the NRIs to hold and manage their earnings generated from India while residing overseas. You can earn up to 7.50% on your NRO deposits. The following table shows the rate of NRO fixed/term deposits offered by HSBC.
| Tenure | Rate of Interest (%) |
| 7 days to 8 days | 2.85% |
| 9 days to 14 days | 3.00% |
| 15 days to 29 days | 3.00% |
| 30 days to 59 days | 3.40% |
| 60 days to 89 days | 3.60% |
| 90 days to 93 days | 3.80% |
| 94 days | 3.80% |
| 95 days to 179 days | 4.00% |
| 180 days | 4.50% |
| 181 days to 269 days | 3.25% |
| 270 days to 364 Days | 3.70% |
| 365 days | 4% |
| 366 days to 399 days | 4% |
| 400 days | 3.25% |
| 401 days to less than 18 months | 6.25% |
| 18 months to 599 days | 4.10% |
| 600 days | 3.75% |
| 601 days to 699 days | 3.30% |
| 700 days | 3.75% |
| 701 days to 730 days | 4.25% |
| 731 days | 4.25% |
| 732 days to less than 36 months | 7.50% |
| 36 months to less than 37 months | 7.00% |
| 37 months to less than 48 months | 6.00% |
| 48 months to 60 months | 6.00% |
2. HSBC FCNR Interest Rates
FCNR stands for Foreign Currency Non-Resident. In this type of fixed/term deposit account, an NRI can hold foreign currencies in India. Since the sum of the deposit is held in foreign currency, you are always free to transfer funds outside India. The core benefit of this type of account is that both the principal and the interest component are completely exempted from tax.
The following table shows the FCNR deposit rates for various currencies.
| Currency | USD | GBP | CAD | EUR | CHF | JPY | DKK | SEK |
| 1 year to less than 2 years | 2.50 | 3.50 | 0.10 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| 2 years to less than 3 years | 3.75 | 0.50 | 0.10 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| 3 years | 3.25 | 0.50 | NA | NA | 0.01 | NA | 0.01 | 0.01 |
3. HSBC RFC Interest Rate
RFC stands for Resident Foreign Currency account is a type of fixed/term deposit account that is specially designed for Non-Resident Individuals (NRIs) to retain their foreign currency and can be convertible into Indian currency on a later date as and when the exchange rates are favourable.
Tenure | Currency | |||
| USD | GBP | EUR | JPY | |
| 31 days to 6 months | 0.10 | 0.10 | 0.10 | 0.10 |
| 6 months to 1 year | 0.10 | 0.10 | 0.10 | 0.10 |
| 1 year to 2 years | 0.10 | 0.10 | 0.10 | 0.10 |
| 2 years to 3 years | 0.10 | 0.10 | 0.10 | 0.10 |
| 3 years | 0.10 | 0.10 | NA | NA |
HSBC vs Other Banks’ FD Interest Rates
The following table shows the comparison between the HSBC fixed deposit interest rates with other banks’ fixed deposit rates. Here, deposits below ₹2 crore made by regular depositors are considered for a common threshold.
| Name of the Bank | Tenure of FD | Rate of Interest |
| HSBC | 7 days to 5 years | 2.85% to 7.50% |
| HDFC Bank | 7 days to 10 years | 3% to 7.10% |
| SBI | 7 days to 10 years | 3% to 7% |
| ICICI Bank | 7 days to 10 years | 3% to 7.10% |
| IndusInd Bank | 7 days to 10 years | 3.50% to 7.75% |
| Bank of Baroda | 7 days to 10 years | 3% to 7.05% |
| Axis Bank | 7 days to 10 years | 3.5% to 7.26% |
| Bank of India | 7 days to 10 years | 3.00% to 7.15% (additional 0.90% for Super Seniors) p.a. |
| Union Bank of India | 7 days to 10 years | 3% to 7.30% |
| Kotak Mahindra Bank | 7 days to 10 years | 2.75% to 7.20% |
| IDFC First Bank | 7 days to 10 years | 3.50% to 7.75% |
| Punjab and Sind Bank | 7 days to 10 years | 2.80% to 7.60% p.a. |
| Yes Bank | 7 days to 10 years | 3.25% to 7.50% |
| DBS Bank | 7 days to 5 years and above | 2.5% to 8% p.a. |
| Bandhan Bank | 7 days to 10 years | 3% to 8.00% |
| Punjab National Bank | 7 days to 10 years | 3.5% to 7.25% |
| Indian Overseas Bank | 7 days to 10 years | 4.30% to 7.75% p.a. |
| Central Bank of India | 7 days to 10 years | 4% to 7.25% |
| Sundaram Finance | 12 months to 36 months | 7.45% to 8.25% p.a. |
| RBL Bank | 7 days to 20 years | 3.5% to 7.80% |
| Canara Bank | 7 days to 10 years | 4% to 7.25% |
| Indian Bank | 7 days to 5 years | 2.8% to 6.70% |
| Federal Bank | 7 days to 2,223+ | 3% to 7.25% |
| UCO Bank | 7 days to 6 years and above | 4% to 7.50% |
Features and Benefits of HSBC Fixed Deposit
Listed below are the key benefits and features of fixed deposit schemes offered by HSBC India.
- In a term/fixed deposit offered by HSBC, the minimum tenure is 7 days.
- In a term/fixed deposit offered by HSBC, the maximum tenure is 5 years.
- The minimum amount of deposit is ₹10,000.
- Special interest rates are available for certain tenures. For example, a deposit of 732 days to less than 36 months carries 7.5% interest for deposits below ₹2 crore.
- There is no upper limit for the amount of the deposit.
- Residents and NRIs are subject to TDS, as per the applicable norms.
- Fixed/term deposits of below ₹1 crore can be booked online via internet banking.
- The payment of interest takes place every quarter or during the time of maturity.
Also Read
Various Types of HSBC Fixed Deposit Schemes
There are a number of fixed deposit schemes offered by the HSBC Bank for Indian residents and NRIs. Listed below are the following schemes which are designed to serve a specific purpose so that it becomes appropriate and beneficial for the target customers. The various types of FDs offered by HSBC India are as follows:
- Fixed/Term Deposit for General Public & Senior Citizens
- NRE Term Deposit Scheme
- NRO Term Deposit Scheme
- FCNR Deposit Scheme
- RFC Deposit Scheme
1. Fixed/Term Deposit for General Public & Senior Citizens
- Minimum Deposit: ₹10,000
- Maximum Deposit: No upper limit
- Tenure: 1 year to 5 years
- Interest Rate: 2.85% to 8.50%
- Eligibility Criteria: Indian Residents
2. HSBC NRE Term Deposit Scheme
- Minimum Deposit: ₹25,000
- Maximum Deposit: No upper limit
- Tenure: 1 year to 3 years
- Interest Rate: 2.80% to 7.65%
- Eligibility Criteria: NRIs
- Interest Payout: Quarterly or at the time of maturity
- Taxability: The principal and interest components both are exempted from tax
3. HSBC NRO Term Deposit scheme
- Minimum Deposit: ₹25,000
- Maximum Deposit: No upper limit
- Tenure: 7 days to 5 years
- Interest Rate: 2.85% to 7.50%
- Eligibility Criteria: NRIs
4. FCNR Deposit Scheme
- Minimum Deposit: 1,000 USD, 500 GBP, 125,000 JPY, 750 EUR, 1,500 AUD, 1,000 CHF, 1,000 SEK
- Tenure: 1 to 3 years
- Interest Rate: 0.01% to 3.75%
- Eligibility Criteria: NRIs
5. RFC Deposit Scheme
- Minimum Deposit: 5,000 USD, 3,500 GBP, 5,000 EUR and 500,000 JPY
- Maximum Deposit: No upper limit
- Tenure: 31 days to 3 years
- Interest Rate: 0.10% per annum
- Eligibility Criteria: NRIs
How to Invest in an HSBC Fixed Deposit Online?
Listed below are the following steps to open an HSBC FD account:
- Step 1: Navigate to the internet banking page of HSBC India and log in using your username and password.
- Step 2: Open the personal internet banking and select “Open Fixed Deposit”.
- Step 3: Then choose your preferred type of fixed deposit, and select the tenure and the amount.
- Step 4: Then verify those details by selecting “Continue” to complete your FD application.
- Step 5: You have now opened a new fixed deposit account.
Documents Required for an HSBC FD Account
Listed below are the documents required for opening an FD in HSBC. You need to produce only one of them.
- Proof of identity: Voter ID card, passport, driving licence, or Aadhaar card.
- Proof of address: Aadhaar card, voter ID card, Passport.
- DOB proof: Birth certificate, voter ID card, PAN card, Aadhaar card
Taxation on HSBC FD
- The interest income earned by an individual out of fixed deposit is taxable under the head “Income from other sources” and it is taxable as per the applicable slab rate of the individual.
- In case of premature withdrawals, the income generated from interest is also taxable as per the applicable slab rates.
- TDS is deducted at source if the interest income of an individual exceeds ₹40,000 in a financial year and ₹50,000 for senior citizens.
- If you submit your PAN details, the TDS deduction is 10% of the interest income. Without it, the TDS deduction rate will be 20%.
- Anyone falling under the minimum exemption limit can submit Form 15G or Form 15H to avoid TDS deductions.
Loan against HSBC FD
HSBC allows you to open a smart money account with a minimum amount of fixed deposit of ₹25,000. This account allows the depositor to get 90% of his/her deposit amount as a loan/overdraft.
- This type of account provides you with a higher rate of interest along with liquidity and flexibility.
- This smart money account provides the advantage of interest income after you have taken a loan. Only the withdrawn amount is charged interest while the rest of the FD amount continues to earn interest.
- You can also get a free HSBC credit card and a free international debit card.
However, there are certain eligibility criteria to apply for this smart money account. The individual has to be an Indian resident; he or she should be of minimum 18 years of age and should have a minimum fixed deposit of ₹25,000.
Final Words
HSBC fixed deposit interest rates are quite lucrative for a safe investment. Therefore, if you are looking forward to investing in an HSBC FD then hopefully this article has provided some valuable input towards making an informed decision. Moreover, it is always suggested to visit the official website of the bank for a better understanding.
Investing in FDs gives you assured returns albeit at a lower interest rate. But to beat the rising inflation, you need to find an alternate avenue. Consider investing in Navi Mutual Fund schemes maybe? We have schemes for every investor. Wary of the market? You can mitigate the market chaos by investing with just Rs.10!
FAQs
If your total income is below the taxable range, TDS will not apply to your interest income. But in order to be eligible for the tax exemption, you will have to submit Form 15G or Form 15H.
The minimum amount of investment required to open a fixed deposit account with HSBC India is ₹10,000. The rate of interest varies on the tenure of your investment.
In case of premature withdrawals of fixed deposits, a penalty of 1% is charged by the bank on the value of FD.
While opening your HSBC fixed deposit account, you will have the option for auto-renewing your FD upon maturity. If you select auto renewal, your FD would get re-invested upon maturity.
HSBC offers up to 7.50% interest rate for general depositors and 8% for senior citizens for the tenure ranging from 732 days to less than 36 months.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
