How to Close HSBC Bank Fixed Deposit

FAQs on How to Close HSBC Bank FD

• What is the minimum tenure for the fixed deposit?

  A fixed deposit account can be opened for a tenure starting at 7 days.

• Can my FD account be automatically renewed?

  Yes, depending on the action you have chosen at the beginning of the process of opening an FD account, the FD can either be renewed or deposited to a bank account of your choice.

• Is there a penalty to withdraw the fixed deposit prematurely?

  Yes, HSBC does charge a premature withdrawal penalty of 1% on the interest accrued on the fixed deposit depending on the tenure chosen.

• How do I close my HSBC Bank Fixed Deposit?

  To close your HSBC Bank Fixed Deposit, you need to visit the branch of HSBC Bank where you hold the FD account. 

• What documents do I need to close my HSBC Bank Fixed Deposit?

  To close your HSBC Bank fixed deposit account, you will need your FD receipt, identification documents (such as PAN card), and any other specific documents mentioned by the bank. 

• Can I close my HSBC Bank Fixed Deposit online?

  HSBC Bank usually requires customers to visit a branch in person to close their Fixed Deposit accounts, but depositors can also close their FD account online, by logging into their internet banking account, click on registered deposit account, and select the option of 'close FD'. 

• Is there a penalty for premature closure of an HSBC Bank Fixed Deposit?

  Yes, HSBC Bank charges penalties for premature closure of FDs and the penalty amount and conditions vary based on the terms agreed upon at the time of opening the FD. 

• How long does it take to close an HSBC Bank Fixed Deposit?

  The process usually takes a few minutes to complete at the branch, provided all necessary documents are in order and it can be done even faster through online mode. 

• Can I close my HSBC Bank Fixed Deposit before maturity?

  Yes, you can close your HSBC Bank FD before maturity, but due to the premature closure penalty it may result in a lower interest payout. 

• What happens to the interest earned if I close my HSBC Bank Fixed Deposit prematurely?

  If you close your FD prematurely, HSBC Bank will calculate the interest applicable as per their policy and after deducting penalties and charges, they will provide you with the balance amount. 

• Can I get the closure amount credited to my HSBC Bank account directly?

  Yes, you can request the closure amount to be credited directly to your HSBC Bank savings or current account. 

• Are there any specific conditions for closing an HSBC Bank Fixed Deposit?

  Yes, there are specific conditions for closing an HSBC Bank fixed deposit account for which you must comply with the bank's rules and regulations regarding premature closure, which may include providing sufficient notice and paying applicable penalties. 

• Can I reinvest the proceeds from my closed HSBC Bank Fixed Deposit into another FD?

  Yes, after closing your FD, based on your financial goals and preferences you can choose to reinvest the proceeds into another Fixed Deposit, or any other investment option offered by HSBC Bank. 

• What interest rate will I get if I encash my fixed deposit prematurely?

  If you encash your fixed deposit prematurely, then the bank will either reduce the interest rate by 1.00% which is the interest regardless of the deposit amount or the placement and withdrawal dates or will pay the interest at contractual rate, whichever is lower. No interest is paid for premature withdrawals made before the minimum accepted deposit period, specified at the time of deposit placement. 

• Will my deposit be automatically renewed?

  Yes, your deposit will be automatically renewed for the same period at the prevailing interest rates, if upon maturity no instructions have been specified in the account. 

• Do I get the facility of crediting my interest earned to another account when I place a fixed deposit?

  Yes, you can get the facility of crediting your interest earned from FD to another account by selecting cumulative deposit while opening the account as this type of deposit reinvests the interest earned along with the principal amount.