HSBC Bank Credit Card Interest Rates

How Are Credit Card Interest Rates Calculated by HSBC?

The interest rate of the credit cards by HSBC is calculated through the Annual Percentage Rate of APR. It is the total rate of interest applicable on your credit card per year.

HSBC Bank charges a monthly rate of interest on the due amount daily. You can calculate the Daily Periodic Rate by dividing the Annual Percentage Rate by the total number of days in the year.

The credit card interest is calculated based on multiple factors, such as: 

1. Transaction date 

1. Transaction amount 

1. Statement date 

1. Timing and amount of repayment 

Example Scenario  

Monthly Interest Rate: 3.75% (equivalent to 45% annually) 

Transaction Date: 5 June 2025 

Transaction Amount: Rs.15,000 

Statement Date: 10 June 2025 

Total Amount Due: Rs.8,000 

Due Date: 30 June 2025 

Minimum Amount Due: oRs.150 (1% of Rs.15,000) 

On Missing the Due Date: Interest charges and a late fee will apply to the unpaid balance if the due date is missed. 

On Making a Partial Payment: Suppose you pay Rs.8,000 on 25 June and make no further purchases before the next statement on 10 July. 

Interest will be calculated in two parts: 

Interest Breakdown at 3.75% Monthly (45% Annually) 

Interest from 5 June to 25 June (20 days) 

Amount: Rs.15,000 

Formula: (20 × Rs.15,000 × 45%) ÷ 365 

Interest: Rs.369.86 

Interest from 26 June to 10 July (15 days) 

Amount: Rs.7,000 (remaining balance) 

Formula: (15 × Rs.7,000 × 45%) ÷ 365 

Interest: Rs.129.45 

Total Interest Charged 

Total Interest = Rs.369.86 + Rs.129.45 = Rs.499.31 

The formula for interest rate calculation is: 

Interest Rate = [(Total Outstanding Amount x interest rate per month x 12 months) X number of days] / 365 days.

Interest Rate Charged on HSBC Credit Cards

The following are some of the HSBC credit cards and the corresponding interest rates: 

Which HSBC Credit Card Transactions Attract Interest Charges?

Interest charges on credit cards are applied not only for the inability to pay the total due amount within the due date, but also for other activities and transactions. Some of them are as follows:

1. If you have not paid the minimum due amount within the due date, a late fee and other charges will be added.
2. If you have paid only the minimum due amount, carry a portion of the total outstanding amount into the next billing cycle. 
3. In case you have used your credit card to withdraw cash.
4. Using your credit card internationally, HSBC may add additional charges or foreign currency charges.

HSBC Credit Card Interest-free Period

HSBC offers an interest-free period of up to 50 days; however, it also depends on the date of the transaction. The interest-free credit period will only be applicable if you have paid your total outstanding amount in full for the previous month.

On paying the total outstanding balance within the interest-free period, the bank will not charge you anything additional.

Factors that Impact HSBC Credit Card Interest Rates

The factors that impact the HSBC credit card interest rates that enables users to avail themselves of lowest interest rates are mentioned belowoi: 

1. Credit score matters: A high credit score (750 or above) reflects good financial behavior that can help you get lower interest rates on credit cards. 

1. Repayment history: Timely repayment of past loans or credit card bills indicates strong credit discipline, increasing your chances of getting better interest rates, as missed or delayed payments can lead to higher rates. 

1. Credit utilisation ratio: Low interest rates can be availed by the customers by using less than 40% of their credit limit. 

1. High credit usage: High rate of interest will be charged on your credit card bill, if you regularly use over 70% of your credit limit, as it may signal financial stress to lenders. 

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