Certificates of Deposit (CDs) FAQs | HSBC

 

Online Certificate of Deposit FAQs

What is an Online Certificate of Deposit (CD)?

It's a Certificate of Deposit that provides a fixed rate of return for the term of the product. With no monthly fees, you are guaranteed a specific amount at the maturity date provided no early withdrawals are made from the account.

With Online CDs, you can automatically roll over your matured Online CD to an Online CD of the same term at the then-current interest rate and APY or transfer your CD principal and interest to another HSBC deposit account within the grace period without penalty.

With an Online CD, all customer communications, including your eStatements and your receipts and maturity notices, are sent electronically.

What is the maturity date of a CD?

The maturity date is the day the current term ends and the funds are now available to the customer for any changes. To find your maturity date, refer to your statement or your original e-Receipt.

What is the grace period for a CD?

The grace period starts on the CD maturity date. During this period of time, you can roll your CD to another term, as well as perform a one-time deposit or withdrawal of funds without being assessed an early withdrawal penalty. The grace period will terminate on the day you provide an instruction to change the term or perform a transaction.

When is interest paid on an Online CD?

Your eReceipt will indicate what is applicable to your account. Depending on the term and other features of the account, interest may be credited and paid monthly, quarterly, semi-annually, annually or, if the account term is one year or less, at maturity. If periodic interest payments are available, you may choose to have the interest credited to another HSBC deposit account. Even if periodic interest payments are not available, you may withdraw any earned interest on or before the maturity date with no early withdrawal penalty.

What are the penalties for early withdrawal of money from an Online CD?

If you withdraw any of your principal from your Online CD, you will incur penalties as follows:

  • 7 days to 1 Year = 30 days simple interest
  • More than 1 year but less than 2 years = 90 days simple interest
  • 2 years or more =180 days simple interest

The penalty may reduce principal if there is insufficient interest available. There is no penalty for a withdrawal made during the grace period.

Are there monthly maintenance fees for CDs?

There are no monthly maintenance fees for CDs.

What is the minimum balance for Online CDs?

The minimum balance to open an Online CD is $1000.

What is the maximum deposit that I can make to an Online CD?

The maximum balance per CD account is $2,000,000. When opening an account you can deposit funds in two ways, electronically up to $300,000, or by check up to $2,000,000.

What happens if the APY changes by the time the funds are deposited into my CD account?

The interest rates and Annual Percentage Yields (APYs) may change at any time at the Bank's discretion without prior notice, before a CD is opened. CDs are considered opened when the application process is finalized AND the CD is funded.

CDs are opened on business days only. If the application process is finalized on a Saturday, Sunday or Bank Holiday or on a business day at a time when the processing of your deposit cannot be completed that same day, your account will be opened on the following business day. If this occurs, your account will receive the interest rate and annual percentage yield in effect on the date it is opened.

Will I receive confirmation and additional details after opening my Online CD?

Yes, you will receive an email with instructions to log on to your Personal Internet Banking account and open a BankMail containing your eReceipt. The eReceipt is a legal document and contains the issue date, the maturity date, and the APY of your Online CD. Print the eReceipt and keep a copy for your records.

Can I transfer money between my Online CD and other accounts?

You can make a one-time transfer between your Online CD and other accounts during the grace period. The grace period will terminate on the day you provide an instruction to change the term or perform a transaction.

Can I withdraw money from my Online CD?

If you withdraw any principal prior to maturity there is an early withdrawal penalty. During the grace period, you may make a one-time withdrawal without being assessed an early withdrawal penalty. The grace period will terminate on the day you provide an instruction to change the term or perform a transaction.

Am I notified when my Online CD is maturing?

HSBC will send you a notice approximately 16 calendar days in advance of the maturity date of your Online CD.

Does my Online CD automatically renew at maturity?

Your Online CD will automatically renew to an Online CD of same term at the then current interest rate and APY at the time of maturity. Your options include transferring your Online CD balance to an existing account, opening a new one, or requesting a change in the term of your current CD.

Can I add money to my existing CD and change the term of the CD during the grace period (e.g., from 6-month to 12-month)?

During the grace period, you can roll your CD to another term, as well as perform a one-time deposit or withdrawal of funds without being assessed an early withdrawal penalty. The grace period will terminate on the day you provide an instruction to change the term or perform a transaction.

How do I transfer money out of my mature Online CD account?

You can transfer the entire balance at maturity or during the grace period in Personal Internet Banking, either by instantly transferring money to your other HSBC accounts, or by using Bank to Bank Transfers to transfer to external bank accounts. If you transfer a portion of the amount, your grace period will end early.

What if I need to close my account before maturity?

You can call the Customer Relationship Center at 888.404.4050. There will be a penalty for early withdrawal.

Can I add beneficiaries to my Online CD Account?

You can add only one beneficiary to your Online CD by sending the beneficiary's name via a BankMail to the Customer Relationship Center.

1 ANNUAL PERCENTAGE YIELD is based on principal and interest left on deposit for a full 365 day year with interest compounded at the same interest rate. Withdrawal of interest prior to maturity will result in a lower Annual Percentage Yield than stated.

Have a question?

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†† Investments, Annuity and Insurance Products:
ARE NOT A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES ARE NOT FDIC INSURED ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES MAY LOSE VALUE
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