HSBC Term Deposit Review, Rates & Information

Product details

When you open an HSBC term deposit online, it rewards your account by increasing the interest rate by an extra 0.10% per annum (p.a.). With this type of high interest savings account, your money is locked into a fixed rate term, letting you to know exactly how much will be earned and giving you more incentive to reach that potential.

If you have a specific savings goal to work towards, a term deposit from HSBC can help you reach it.

Product Name: HSBC Term Deposit

1 month interest rate: 1.55%

3 month interest rate: 2.00%

4 month interest rate: 1.65%

6 month interest rate: 2.05%

9 month interest rate: 1.65%

12 month interest rate: 1.95%

24 month interest rate: 2.05%

36 month interest rate: 2.15%

48 month interest rate: 2.15%

60 month interest rate: 2.15%

Min Deposit: $5,000

Joint Application: Yes

Minimum Age Requirement: 18

Covered by Government Guarantee: Yes (Up to $250,000 per person, per institution)

What are the features of the HSBC Term Deposit?

High interest savings accounts like a term deposit vary in their features when compared from bank to bank. Before you choose any one over another, consider what you get with a term deposit from HSBC:

Account keeping fees. You are not charged any fees for applying for this account or for its monthly maintenance.
Interest rates. The interest rates applied to your balance are fixed and tiered so that the longer you keep your savings inside of the account, the higher the return on your investment.
Special offer. For a limited time, HSBC is offering three and six month term deposits at an increased interest rate.
Bonus interest. If you open your term deposit using internet banking, you will have a bonus rate added to the standard for the entire term.
Interest payments. Interest is calculated daily and can be paid into your account monthly, quarterly, annually or at the end of the terms.
Interest deposit. The interest earned can be reinvested or paid into your linked account. You can also choose to have a partial amount of the interest re-invested.
Accessing your account. You can access your term deposit using internet, mobile or phone banking or by visiting a branch.
Length of terms. The terms offered by HSBC range from one month to five years.
Minimum deposit. You must be able to invest at least $5,000 into an HSBC term deposit.
Foreign currency. Investors can also choose to open a term deposit in a major foreign currency.
Reaching terms. If you do not notify HSBC of your intent to close your term deposit at least two days before it reaches maturity, the balance will be rolled over into a new account with the same terms, but a change in the fixed interest rate to what is being offered at that time. You are sent reminders when approaching maturity of the account via the contact centre within internet banking.

Early withdrawal. If you realise that you are not going to be able to keep your savings inside of the term deposit for the length of time chosen, you may opt to make an early withdrawal. If you do make that choice, the interest rate will be reduced by half and you will be charged $40 as an administration fee.

Pros

Available in both Australian dollars and selected foreign currencies
Earn a bonus when opening through Online and Internet banking

Cons

Minimum balance of AUD $5000

How do I apply for the HSBC Term Deposit?

If you are not already an HSBC customer, or are looking to open a term deposit of longer than one year, you will need to visit your local branch in order to apply for a term deposit. Existing customers with internet banking and who plan on opening an account with terms between 1 and 12 months can get started on applying by visiting HSBC website. Before heading out to a branch or starting an online application, you should note the following eligibility criteria for this account:

Minimum age. While HSBC lists no minimum age requirement for their term deposit, applicants under the age of 18 should ask at their local branch before starting to apply.
Residency requirements. An applicant will need to show that they have a valid residential address in Australia at the time of application.
Depository requirements. You must be prepared to deposit a minimum of $5,000 before this account can be opened.

In addition, you should have the following documentation ready in order to ensure that the information you provide on the application is correct:

Tax file number. Your Australian tax file number (TFN) or TFN exemption is used to ensure that the withholding tax on your earned interest is the correct rate.
Identification. New HSBC customers will need at least two forms of identification, one of them being a photo id document such as a driver’s licence or passport.

If all of the information needed is correct, HSBC will activate your term deposit by depositing the funds you provided into your new account. You can then view the progress of your savings growth through their internet banking.