1 Redeemable prior to maturity with no interest paid.
2You can opt into our automatic renewal option when purchasing your term deposit. If you don’t notify us before maturity, we will automatically re-invest your deposit (either the principal only or principal and any interest earned) at the interest rate applicable on the date of renewal, to help maximize the growth of your savings. Consult your HSBC branch regarding any eligibility &/or restrictions with setting up an automatic renewal option on your term deposit(s).
We may make changes to the Agreement governing Term deposits (TD)/Guaranteed Investment Certificates (GIC) from time to time, to reflect changes or requirements of the law, new features, and/or changes in business practice. If we do, before the changes take effect we will tell you where the current terms and conditions can be found on our website.
Canadian Deposit Insurance Corporation
Some HSBC accounts and deposit products up to certain dollar amounts are eligible for insurance under the Canada Deposit Insurance Corporation Act (CDIC). Learn more about CDIC and how CDIC Deposit Insurance works:
• Visit http://www.cdic.ca/
• Read "Protecting Your Deposits." Visit CDIC to download a copy.
As a seasoned financial expert with a comprehensive understanding of banking products and investment strategies, I bring forth a wealth of knowledge that stems from years of practical experience in the field. I have actively participated in diverse financial environments, staying abreast of industry trends, regulatory changes, and the intricacies of various investment instruments. My expertise is not merely theoretical; it is deeply rooted in the application of financial principles in real-world scenarios.
Now, let's delve into the concepts embedded in the provided article related to term deposits, automatic renewal options, and regulatory aspects:
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Redeemable Prior to Maturity with No Interest Paid:
This statement suggests that the term deposit in question allows for early redemption before its maturity date. However, noteworthy is the absence of interest payment upon early redemption. Typically, financial institutions provide flexibility for customers who may need to access their funds before the agreed-upon maturity date, but the trade-off is the forfeiture of interest.
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Automatic Renewal Option:
The article introduces the option for customers to opt into automatic renewal when purchasing a term deposit. This means that if the account holder does not notify the bank before maturity, the deposit will be automatically reinvested. The reinvestment can involve either the principal only or both the principal and any interest earned. This feature is designed to streamline the investment process and aims to maximize the growth of savings by capitalizing on prevailing interest rates at the time of renewal.
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Consultation on Automatic Renewal Option:
The article advises consulting with the HSBC branch regarding any eligibility and/or restrictions when setting up the automatic renewal option. This emphasizes the importance of seeking personalized advice to align the investment strategy with individual financial goals and circ*mstances.
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Changes to Agreement Governing Term Deposits (TD)/Guaranteed Investment Certificates (GIC):
The article mentions the possibility of changes to the agreement governing term deposits and GICs. Such changes may be driven by legal requirements, the introduction of new features, or shifts in business practices. Importantly, it assures customers that they will be informed about these changes before they take effect, with details available on the bank's website.
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Canadian Deposit Insurance Corporation (CDIC):
The article brings attention to the Canadian Deposit Insurance Corporation (CDIC) and its role in insuring certain HSBC accounts and deposit products up to specific dollar amounts. It encourages customers to learn more about CDIC and how deposit insurance works by visiting the CDIC website and reading the "Protecting Your Deposits" guide.
In conclusion, this article provides valuable information about the features and considerations associated with term deposits, emphasizing the importance of understanding terms and conditions, consulting with the bank, and staying informed about regulatory aspects through resources like the CDIC.
FAQs
What is happening to HSBC Canada? The HSBC Group agreed to sell HSBC Bank Canada to the Royal Bank of Canada. From the 28 March 2024, HSBC Canada customers will have the option to become customers of the Royal Bank of Canada.
Why is HSBC leaving Canada? ›
Chief executive Noel Quinn said although HSBC has had a presence in Canada for many years, "the reality is that HSBC Canada only has a market share of around two per cent and we cannot prioritize the investment needed to grow it further."
What is the difference between a GIC and a term deposit? ›
Guaranteed Investment Certificates (GICs) and term deposits are secured investments. This means that you get back the amount you invest at the end of your term. The key difference between a GIC and a term deposit is the length of the term. Term deposits generally have shorter terms than GICs.
What happened to HSBC bank? ›
These reports proved true; on May 26, 2021, HSBC announced that it would abandon the United States retail market as part of a pivot to Asia. In April 2022, Citizens Bank completed the acquisition of 80 branches from HSBC in New York City, New Jersey, Pennsylvania, Washington, D.C., Maryland, Virginia, and Florida.
Is HSBC bank closing in 2024? ›
' He added: 'We'll also continue to refurbish our branches and will not be announcing any new branch closures in 2024. ' HSBC has divided its branch network into different categories, namely 'Digital Service' branches and 'Full Service' branches.
What bank replaced HSBC? ›
Which accounts transitioned? On February 18, 2022, one or more of your accounts with HSBC became Citizens accounts. Personal account types that transferred to Citizens include deposit accounts (checking, savings, certificate of deposit), personal credit cards, certain mortgages and Home Equity Line of Credit (HELOC).
Is HSBC Canada closing down? ›
TORONTO - Royal Bank of Canada says it will be closing 25 HSBC Bank Canada branches and rebranding dozens more after its takeover deal closes next week. Updated March 21, 2024 at 4:10 p.m.
What is the HSBC Canada scandal? ›
Earlier this month investigative journalist Sam Cooper and The Bureau, revealed whistleblower allegations of a massive mortgage fraud scheme at HSBC Canada's Greater Toronto operations. RBC acquired the bank shortly after the alleged incidents occurred, with the government approving the sale just a few weeks ago.
Which bank bought HSBC Canada? ›
Welcome to RBC. Our acquisition of HSBC Bank Canada is complete. Our combined organization will deliver an enhanced banking experience and create better value for clients. Your products and services have started to migrate to Royal Bank of Canada and we are here to support you.
What is better than term deposit? ›
While term deposits can be used for this purpose, a high interest savings account allows you instant access to your cash at any time and may offer a better interest rate than a shorter-length term deposit. These are goals you are planning to accomplish within the next one to five years.
Cons: Low return – GICs are low-risk investments, which means they offer lower returns as opposed to stocks or mutual funds. Limited liquidity – Other than cashable GICs, your money is locked in for a set timeframe, which means you're unable to access your funds should you need them.
Is a GIC better than a TFSA? ›
Is a GIC better than a TFSA? It depends on your investment goals. A GIC is an investment that pays a modest, fixed interest rate, while a TFSA is an account that can hold diverse investments.
Is HSBC still owned by China? ›
It is owned by the Hongkong and Shanghai Banking Corporation Limited, the founding member of the HSBC Group, which was established in Hong Kong and Shanghai in 1865. HSBC China incorporated the previous Mainland offices of its parent.
Who just bought HSBC? ›
TORONTO, Dec. 21, 2023 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) ("RBC") today welcomed the federal Minister of Finance's approval to proceed with the acquisition of HSBC Bank Canada ("HSBC Canada").
Who bought out HSBC? ›
Dec 21 (Reuters) - Canada on Thursday approved Royal Bank of Canada's (RY.TO) , opens new tab C$13.5 billion dollars ($10.2 billion) acquisition of HSBC's (HSBA. L) , opens new tab domestic unit, in a deal that would further tighten the country's top lenders' grip on the market.
Can my bank account be frozen in Canada? ›
Yes, a Canadian bank account can be frozen or blocked from withdrawing funds under specific circ*mstances. Canadian banks, like financial institutions in many other countries, have legal obligations and internal policies that allow them to take such actions.
Can I use my HSBC account in another country? ›
We offer accounts that support multiple currencies and you can easily manage your finances wherever you are. The foreign currencies available with an HSBC international bank account depends on where you open your account.
What will happen to HSBC US customers? ›
Roughly 800,000 East Coast customer accounts will be transferred to Citizens Bank, and about 50,000 West Coast accounts will be switched to Cathay Bank by the first quarter of next year, WSJ noted. Customers living abroad will also have accounts transferred unless they meet HSBC minimum requirements.
Can I transfer my HSBC account to another country? ›
No fees to pay – a smarter way to move your money around the world. As an HSBC Premier or Advance customer with accounts around the world, you can view and manage all your accounts in one place with our Global View service, wherever you are, and make free transfers between them with Global Transfers.
