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HSBC Cluster Term Deposit
Product Overview
The HSBC Cluster Term Deposit is a new generation of term deposit that allow you the freedom to make a partial withdrawal of the principal while preserving the remaining amount until the predetermined date of maturity. Customers no longer need to sacrifice their term deposit interest through premature withdrawals. With the HSBC Cluster Term Deposit you can enjoy both the flexibility of cash management as well as the confidence of knowing that your financial income is guaranteed with a fixed interest rate.
Product Features
- Customer Eligibility : All Individuals
- Minimum Deposit Amount : KRW 3,000,000
- Interest Payment : Maturity / Interim payment (monthly, quarterly, semiannual)
- Term : 3 months ~ 60 months
- Interest after maturity : 0.1% (Rate of Regular Savings Account in Korean Won)
- Interest Rate : Same as term deposits
Interest rate are only applied to the deposit principal that is maintained until maturity.
For the partially withdrawn principal, a separate premature withdrawal rate will be applied.
Premature Withdrawal Rate
The following interest rate will be applied to the remainder of an HSBC Cluster Term Deposit where a portion of the deposit principal was prematurely withdrawn.
[As of Jan 2008, Before Tax]
Preferential Tax Service
Tax discounts allowed according to remaining limit
- Adults : KRW 10,000,000
- Senior citizens: KRW 30,000,000
Others
- Global passbook print-outs
- Automatic maturity instructions
- Deposit Backed Loans available up to 90% of deposit principal
Partial Withdrawal
HSBC Cluster Term Deposits allow partial principal withdrawal based on the following conditions:
- Withdrawal Eligibility Date : 1 month after account opening
- Withdrawal Amount : Any amount greater than KRW 1,000,000
- Minimum Remaining Balance : KRW 1,000,000
- Interest Calculation : Separate premature withdrawal rate will be applied to partially withdrawn principal.
- Withdrawal frequency : Unlimited
- However, customers must adhere to the minimum maintenance requirement of KRW 1,000,000. If the remaining balance after partial withdrawal is less than the amount indicated, the bank is authorized to close the account. - Others :
In case of interim payments, HSBC Cluster Term Deposit customers are to repay the pre-received interim interest to the bank due to the difference in the rate applied to the partially withdrawn principal amount.
Partial Withdrawal Interest Rate
| Period | Normal Rate |
| -KRW 1M | 0.1% p.a. |
| KRW 1M-3M | 0.8% p.a. |
| KRW 3M-6M | 0.8% p.a. |
| KRW 6M-12M | 1.2% p.a. |
HSBC Free Regular Deposits - Example of a partial withdrawal
. Period : 12 months
. Interest rate : 2.0% p.a. [Mid cancellation interest rate are applied when canceled after 6 months, TS 1.2% p.a.]
. Assume customer withdraws KRW 50,000,000 on the 7th month during the deposit period.
| STANDARD TERM DEPOSIT | CLUSTER TERM DEPOSIT | |
| Withdrawal amount | Total principal | KRW 50,000,000 |
| Interest paid | 1.2% p.a. [prenature interest rate] (KRW 100,000,000 X 1.2% X 210 days)/365 = KRW 690,410 If principal is prematurely withdrawn, the customer will have a loss of KRW 1,309,590 from the original interest of KRW 2,000,000 based on the contract rate of 2% |
1.2% [premature interest rate] (KRW 50,000,000 X 1.2% X 210 days)/365 = KRW 345,205 Interest on the remaining principal (KRW 50,000,000 X 2.0% X 365 days)/365 = KRW 1,000,000 Total interest amount = KRW 1,345,205 |
. Customers can save KRW 654,795 of their interest through HSBC Cluster Term Deposits.
Act Now
If you have any enquiries about the service provided by HSBC bank, please send us e-mail or if you want consultation about products, please call us on ☎ 1588-1770.
▪ This product is eligible for the protection under the Depositor Protection Act. The Korea Deposit Insurance Corporation
protects
a maximum of KRW50mil including the principal and interest for each depositor at each financial institution in
accordance with
the Act.
▪ If real name verification is made under the name of a representing individual, the deposit will be considered as the property of
the named individual and will be treated as an individual deposit in the case of cancellation, seizure and/or any other legal
matter.
▪ Interest rate on this deposit account can vary according to fluctuations in the market and/or at the bank’s discretion.
▪ Interest rate on floating rate products will not be fixed until maturity but rather, will fluctuate when interest rate are revised
based on movements in the market.
