Fixed deposits schemes are the most commonly opted for tax saving instruments mainly by salaried persons. Fixed deposit schemes offer security and higher returns as compared to regular saving schemes.Fixed deposit schemes allow people to invest money for a stated period of time post which a fixed rate has to be paid until the end of the deposit period. HSBC Bank’s fixed deposit scheme offers great returns at the end of tenure.
HSBC Bank Fixed deposit interest rates
|Tenure||FD Rates||Senior Citizen FD Rates|
|7 days to 14 days||3.00%||3.50%|
|15 days to 29 days||3.10%||3.50%|
|30 days to 59 days||3.25%||3.75%|
|60 days to 89 days||4.25%||4.75%|
|90 days to 93 days||5.00%||5.50%|
|95 days to 269 days||5.00%||5.50%|
|270 days to 364 days||5.00%||5.50%|
|366 days to 399 days||5.00%||5.50%|
|401 days to 17 months 29 days||5.00%||5.50%|
|731 days to 35 months 29 days||5.00%||5.50%|
|18 months to 730 days||6.25%||6.75%|
|36 months to 47 months 29 days||5.00%||5.50%|
The above rates are applicable for deposits of below Rs. 1 crore.
HSBC Bank FD: Special Features
- Nomination facility is available to any family member or spouse can be nominated to receive the final amount.
- Deposits can be made for a period of 15 days to 4 years.
- Overdraft facility is available.
- HSBC Bank offers Smart Money Accounts, Fixed deposit accounts, and Senior Citizen Fixed Deposit.
- The minimum amount required to open this deposit scheme is Rs 10,000.
- Customers can avail loan facility up to 90% of the FD amount.
- Competitive interest rates are offered against all FD schemes.
- Easy and fast liquidity options are available.
- No penalty is charged for pre-closure of the account.
- NRE NRO and FCNR deposit facility is available.
- Senior citizens can avail 0.5% higher rates as compared to regular customers.
- The account can be opened easily through online and offline modes.
HSBC Bank FD: Is it the best way to save?
Fixed deposit schemes offer security and higher returns as compared to regular saving schemes over a deposit period and hence are a preferred investment instrument for many. Banks offer competitive interest rates with a variety of lock-in periods catering to the needs of a wide range of investors. However low risks equal low returns as well. A mix of low risk and high-risk investment instruments is a smart investment strategy and hence mutual funds can be considered as a good investment option for higher returns. In case of mutual funds, your money is managed by professional fund managers who have experience in predicting market trends and make sure your money is invested in the right way. This mitigates the risk that mutual funds come with to a large extent. Hence, from a wealth creation perspective, mutual funds help you achieve your financial goals to a certain extent.
HSBC Bank FD: Eligibility Criteria
The following groups and individuals are eligible to open an FD account with Standard Chartered Bank:-
- Joint accounts for 2 or more individuals
- Partnership firms
- Blind persons
- Illiterate persons
- Joint Hindu families
- Limited companies and partnership firms
- Municipalities and panchayats
- Charitable, religious, and educational institutions
- Associations, societies, clubs etc.
- Sole proprietary concerns
HSBC Bank: Premature withdrawal.
HSBC bank allows premature withdrawals of deposit, however, a predetermined penalty will be levied in such a case. 1% penalty rate is applicable on premature withdrawal of fixed deposits. The depositor earns 1% lesser rate compared to the existing interest rate decided during scheme selection.
Tax benefits on HSBC bank’s fixed deposit
HSBC Bank has a tax saving option with deposit tenure of 5 years. Individuals, minors, and HUFs are eligible for this. Investments ranging from Rs 100 to 1.5 Lakh can be made.
However, it is important to note here that in case of fixed deposits, the tax levied is dependent on the tax bracket you fall into irrespective of FD tenure. If the interest earned on your fixed deposit is more than Rs 10,000, TDS deduction of 10% would be deducted by the bank.
Mutual funds have an edge over fixed deposit in this regards as tax payable on mutual funds depends on the category. For example, long-term equity funds (more than 1 year) are tax exempt.They offer a higher capital appreciation potential and a smaller lock-in period of 3 years. Hence we can say investing in Mutual funds is viable tax saving option.
Documents required to open HSBC Bank’s FD account
1. Identity proof
- PAN card
- Voter ID card
- Driving licence
- Government ID card
- Photo ration card
- Senior citizen ID card
2. Address proof
- Telephone bill
- Electricity bill
- Bank Statement with Cheque
- Certificate/ ID card issued by Post office
Types of Fixed Deposit offered by
- Fixed/Short Term Deposit– A standard FD scheme offered by HSBC bank wherein customers are paid fixed interest amounts at regular intervals.
- Quarterly/Monthly Term Deposit– In this scheme, customers can choose to receive interest payments at monthly or quarterly intervals
- You can also choose to receive payment upon maturity of account.