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Term Deposits are secure investments that can generally offer a higher rate of interest than a simple savings account. Term Deposits are available in a number of currencies, a variety of term lengths, and several redemption options.
The TFSA Term Deposit option allows you to earn interest on your deposit free from Canadian income tax.1 The TFSA Term Deposit is a great way to save at a higher rate of interest - safe, secure and interest is earned tax-free. TFSA Term Deposits are offered at competitive interest rates and are redeemable prior to maturity with an interest penalty. They are available in a wide range of terms from 30 days to 5 years. Learn more about TFSAs.
Features
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$1,000 minimum deposit for annual or semi-annual interest payment options
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$5,000 minimum deposit for monthly or at maturity interest payment options
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Redeemable prior to maturity with no interest paid
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Automatic renewal of investments unless advised prior to maturity (option to renew principal only or principal plus interest)
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Interest is calculated daily, not compounded and paid at the interval as opted by you (which may be monthly, semi-annually, annually or at maturity)
Updated 2012-01-20
TFSA Term Deposits
| Short Term | Monthly Interest (min. $5,000) | Interest at maturity (min. $5,000) |
| 30 days | - | 0.55% |
| 60 days | - | 0.65% |
| 90 days | 0.60% | 0.85% |
| 120 days | 0.60% | 0.85% |
| 180 days | 0.75% | 1.00% |
| 270 days | 0.75% | 1.00% |
| Long Term | Monthly Interest (min. $5,000) | Semi-annual or Annual Interest (min. $1000) |
| 1 year | 0.80% | 1.05% |
| 2 years | 0.95% | 1.20% |
| 3 years | 1.10% | 1.35% |
| 4 years | 1.25% | 1.50% |
| 5 years | 1.55% | 1.80% |
| Redeemable prior to maturity receive no interest. Interest is not compounded and is paid at the interval as opted by you (which may be monthly, semi-annually, annually or at maturity). Rates available on request for deposits of $100,000 or more. |
| Select Term Deposits and GICs booked through HSBC's Internet Banking may be eligible for special pricing. Log on to Internet Banking for more details. |
| Rates are subject to change without notice. For information and to confirm most recent rates, please contact any HSBC branch. |
1 Only Canadian residents, who are over 18 years of age and have a valid Social Insurance Number, can make contributions to a Tax-Free Savings Account (TFSA). Annual contributions to TFSAs are subject to specific limits. Generally, the maximum contribution room for a year is equal to the total of unused TFSA contribution room from previous years, distributions (withdrawals) from TFSAs made in previous years and TFSA dollar limit for the year in question ($5,000 which may be increased for inflation). The 2010 TFSA dollar limit is anticipated to be $5,000. The maximum annual contribution applies to all of your TFSAs held with HSBC or any other financial institution. Provided that contribution limits are not exceeded, income earned in a TFSA is not subject to Canadian taxes. Taxes of other countries may apply. Excess contributions to your TFSA are subject to taxes, interest and penalties. Unlike an RRSP, any money you contribute to a TFSA will not itself be tax-deductible.
The content herein is not intended to provide specific tax advice and should not be relied upon in this regard. HSBC makes no guarantee, representation, or warranty and accepts no responsibility or liability as to the tax treatment of these services. For full details about TFSAs and how they relate to your own income tax and financial situation, please consult your personal tax advisor.
