Home > Term Deposits > HSBC Term Deposits

HSBC Term Deposits

Name: HSBC Term Deposits
Creator: Savvy
Published: 2022-09-02T15:17:17+09:30

Explore HSBC's term deposit offers and interest rates to help you compare your options with Savvy.

Written by , updated on September 11th, 2023

HSBC is Europe’s largest bank by total assets, which originated as the Hong Kong and Shanghai Banking Corporation back in 1865. As of late 2021, it held US $2.953 trillion in assets.

HSBC Bank Australia is a wholly owned subsidiary of HSBC and now has more than 35 branches across the country, offering a range of personal banking, business banking and investment services.

Compare HSBC term deposits with those offered by other banks here with Savvy to find out if it's the best place to store your savings. Compare interest rates and terms so that you find a term deposit that’s just right for your personal circumstances.

*Please note that Savvy does not represent HSBC for their term deposit products.

HSBC term deposits explained

What term deposits does HSBC offer?

HSBC Australia offers the full range of fixed term deposits starting at one month up to five years. Their standard term deposits offer interest to be paid either annually or at maturity, with their rates being:

HSBC: common term deposit interest rates

Term length	Interest rate for deposits over $5,000
1 month	0.50% p.a.
3 months	1.85% p.a.
6 months	2.25% p.a.
9 months	2.75% p.a.
12 months	3.25% p.a.
2 to 5 years	3.50% p.a.

(Effective 2 September 2022)

Interest rate reductions for more frequent interest payments

If you wish to have your interest paid more frequently, the following interest reductions apply:

For interest paid monthly, subtract 0.15% p.a. from the advertised interest rate
For interest paid quarterly, subtract 0.10% p.a. from the advertised interest rate

These standard interest rates are geared to favour deposits for the more common terms of 3, 6, 9 and 12 months, which compare very favourably with the major banks. The one-year term deposit rate of is currently one of the highest available for that length of deposit in Australia.

Five-day grace period

At the end of your fixed deposit term, you have a grace period of five calendar days to give HSBC instructions as to where to deposit your savings to terminate your deposit. If no instructions are received within this period, your funds will be reinvested for the same term and at the same interest rate as your previous deposit.

Penalties for early withdrawal

If you apply to withdraw your term deposit funds early, you will only receive 50% of the interest that you would otherwise have been entitled to. In addition, there is a $30 administration fee imposed for early withdrawal of your funds.

Business and SMSF term deposits

HSBC also offers business term deposits, which may also be useful to those who need a deposit for their SMSF. Interest rates for these types of term deposit are available on application to a business manager.

They also offer foreign currency term deposit accounts for up to a maximum of 12 months, enabling you to deposit funds in a range of other foreign currencies including GBP, EUR, USD and CNY. The interest rates offered on these accounts are on the low side and depend on the currency you’re depositing.

How do I open an HSBC term deposit?

Opening a term deposit with HSBC involves the following:

If you’re an existing HSBC customer, you can open a term deposit for up to one year through online banking using your usual customer banking number
If you aren’t an existing HSBC customer or wish to open a deposit for longer than one year, you’ll need to visit your local branch or phone the bank to open the term deposit account
You’ll need either an HSBC transaction account or a savings account to fund your term deposit

What are the requirements for opening an HSBC term deposit?

The key requirements for opening an HSBC term deposit are:

Minimum term deposit balance of $5,000
Minimum age limit of 18 years
Must be an Australian citizen or permanent resident
Must be able to provide at least two forms of ID including one government-issued photo ID (such as your passport or driver’s licence)
You'll need to supply your tax file number to ensure withholding tax on your interest is calculated at the correct rate

The pros and cons of HSBC term deposits

PROS

Very competitive interest rate

The interest rates on offer are highly competitive, with the one-year term being amongst the highest rates currently on offer in Australia.

No notice period required for early withdrawal

HSBC does not require a 31-day notice period to withdraw funds early in case of hardship, as is the case with many other banks.

Bonus interest for rolling over online

HSBC offers a bonus interest rate of 0.10% p.a. if you roll over your term deposit online into another term deposit period. This bonus interest is in addition to the advertised current interest rate for the period you select.

CONS

Early withdrawal fee

An early withdrawal administration fee of $30 is charged if you choose to end your term deposit early, in addition to the loss of 50% of expected interest.

Savings or transaction account also required

You’ll be required to have either a transaction or savings account with HSBC to fund your term deposit and your funds can’t be paid to a bank outside HSBC at the end of your term.

Substantial reduction for monthly interest

The 0.15% p.a. reduction in the advertised interest rate is quite a substantial sacrifice to receive interest payments more frequently.

More of your frequently asked questions about term deposits

How does a term deposit work?

A term deposit works by providing a fixed rate of interest for a lump sum that is deposited with a bank or financial institution for a set amount of time. Term deposits are offered for a period of a few weeks up to five years, in which time your savings are locked away so they can’t be touched (except in an emergency or in case of severe financial hardship). The interest earned on your savings can either be paid regularly (so the interest compounds) or at the end of the term as a lump sum. If you opt to receive your interest as a lump sum, you’ll generally be offered a higher rate.

How do I find the best high-interest term deposit?

To find the best high-interest term deposit, it’s necessary to compare the term deposits offered by a wide variety of financial institutions. Luckily, Savvy takes the hard work out of comparing and finding the best high-interest term deposit. We offer clear and accurate comparison information so you can see at a glance which institutions offer the highest rates and best deals available in Australia for your savings.

What are the advantages of a term deposit?

The advantages of a term deposit are that you’ll have certainty. You’ll be certain exactly how much interest your savings will earn over a pre-defined period, as the interest rate paid on a term deposit is fixed for the duration of the term. As your savings are locked away for that term, the temptation to dip into your savings is taken away. You can be certain that your savings will be intact at the end of your term, and know exactly how much interest they have earned.

How can I work out how much interest I’ll earn on my term deposit?

You can use Savvy’s term deposit calculator to help you work out exactly how much interest your savings will earn over a set period. Just enter in the amount you wish to deposit, the term of the deposit and the interest rate offered, and the calculator will show you how much interest your savings will earn.