Key benefits of Cluster Deposits


HSBC Cluster Deposits are Resident Fixed Deposits linked to your Savings Account known as 'Cluster Account' . HSBC Cluster Deposit gives you an opportunity to earn higher interest of Fixed Deposits while at the same time allow you the liquidity of funds when you may need them.

Advantages

  • Earn higher interest on an otherwise idle Savings Account balance
  • One-time Instruction towards setting up of Cluster deposit account.
  • HSBC Cluster deposits are automatically placed or encashed based on availability of idle balances and predefined parameters

Cluster Deposit Parameters

When you sign up for HSBC Cluster Deposit facility, you will have the freedom to pre-define your Cluster Deposit y parameters (subject to certain minimum value ) basis which your Cluster Deposits would get subsequently booked linked to your Cluster Account. The Cluster deposit Parameters that needs to be pre-defined by you while availing of this facility are as follows:

'Tenure of Cluster Deposit'
The 'tenure of Cluster Deposit' is the duration for which the Cluster deposits will be placed. .You can choose from a wide range of tenures from a minimum of 15 days to a maximum of 5 years. Once the tenure is defined l subsequent Cluster Deposits will be placed for similar tenure . The rate of interest applicable for Cluster Deposits will be the prevailing rate of interest for the particular tenure on Fixed Deposit offered by the Bank , at the time of placement of the Cluster Deposit.

Account Minimum Balance Level (AMBL)
AMBL specified by you is the threshold amount subject to a minimum of INR 50,000/- that is required to be maintained on the Cluster Account. The balance in you Cluster Account above the AMBL will lead to placement of Cluster Deposit and the balance below the AMBL will lead to  encashment of Cluster Deposit in units as pre-defined by you.

Placement Unit
'Placement Unit' is the amount in multiples of which each Cluster Deposits will be booked once the balance on your Cluster Account is above the Account Minimum Balance Level (AMBL) .
Minimum amount of 'Placement Unit' for HSBC Cluster Deposit is INR 10,000/- .

Withdrawal Unit
'Withdrawal Unit' is the amount in multiples of which each Cluster Deposit  will be encashed  incase the balance in your Cluster Account is below the  Account Minimum Balance Level (AMBL).

How does your Cluster Deposit work

Incase the End-Of-Day (EOD) balance position of your Cluster Account is above your pre-defined threshold (AMBL), Cluster Deposits will be automatically placed based on the pre-defined placement unit and tenure as have been specified by you while availing of the Cluster Deposit Facility. Similarly if the EOD balance position of the Cluster Account is below the pre-define threshold (AMBL), the Cluster Deposits linked to your Cluster Account would be automatically de-linked, encashed and the funds transferred to your Cluster Account to reinstate the minimum balance level. While the AMBL can be specified by you, it cannot be lower than INR 50,000/- . Similarly, the minimum placement for HSBC Cluster Deposit is INR 10,000/- .

Illustrations for your understanding

Illustrations of  HSBC Cluster Deposit placement,

  • Account Minimum Balance Level in the Cluster Account: INR 50,000
  • Placement Unit: INR 10,000
  • Withdrawal Unit: INR 1

Illustration 1 (Cluster placement)

  • EOD position in  Cluster Account = INR 95,000
  • HSBC Cluster Deposits placed (4 deposits of INR 10,000 each) = INR 40,000
  • Cluster Account Balance = INR 55,000

Illustration 2 (Cluster withdrawal)

  • Existing Cluster Deposit (3 Deposits of INR 10,000/- each) = INR 30,000/-
  • EOD position in Cluster Account = INR 34,000
  • Cluster Deposit encashed ( 1 deposits of INR 10,000 encashed completely and 1 deposit of INR 10000 encashed till INR 6000; latest deposit placed is encashed first ) = INR 16,000
  • Cluster  Account Balance = INR 50,000
  • Cluster Deposits Balance = one deposit of INR 10,000 and one deposit of INR 4,000
  • The cluster deposits remaining post pre encashment of the above Cluster Deposit continues with the original instruction at the time of placement

To know more

Call HSBC PhoneBanking
Visit www.hsbc.co.in
Visit your nearest HSBC branch
Contact your CEP Relationship Manager

Important Notes:

  • HSBC Cluster Deposits are resident fixed deposits linked to the Cluster Account, that support automated placement or breakage of deposits based on End-of-day (EOD) funds position in the Cluster Account. The Account Rules associated with 'Fixed Deposit' of the Bank will be applicable on the Cluster Deposits placed as per the instructions from the Customer. For pre-mature encashment  of Cluster Deposits penal rates will be applicable Please visit www.hsbc.co.in for Fixed Deposit Account Rules.
  • The rate of interest applicable for a CD will be the prevailing rate of interest for the particular tenure on Fixed Deposit offered by  the Bank, at the time of creation of the CD. Fixed deposit Interest rates are subject to change from time to time. Please check the applicable interest rates for various tenures and Account rules on HSBC Fixed Deposit displayed at our branches or visit our website hsbc.co.in before placing a Cluster fixed deposit.
  • Cluster Deposits are offered currently to Resident Indian Customers under HSBC Corporate Employee Program (CEP) and are  subject to the Customers being an employee of the Corporate and the account under CEP from the Bank  receiving a salary credit for three consecutive calendar months.  Incase there are no salary credits for 3 consecutive calendar months, the Cluster Deposit facility will be discontinued and the existing Cluster Deposit will be prematurely encashed and credited to customer's linked  Savings Account. Such premature encashment or discontinuation of CD is subject to penalty towards premature encashment as per Bank policy and TDS (where applicable) and any other applicable charges.

Cluster Deposits cannot be clubbed with Smart Money Account facility and is  subject to TDS, where applicable.

  • PAN card details are mandatory for Cluster deposits of INR 50,000 and above.

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