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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.