stepen

Can hsbc ask you to leave if you have the mm2h FD with them ? Can't move that I think

Macsta

Maybe, I do not know but as this it is an expat forum it is reasonable to assume the complaints mentioned and customer purge affected expats in some way or form otherwise it is unlikely it would be mentioned as the original post is related to MY bank opening/recommendation for an expat.

SushiFan

That is what angered those customers even more: HSBC refused to give a real reason why they were telling them to close their accounts and go find another bank. But all this is from hearsay as I don't bank with them.

kiat137

HSBC give very low interest rate compare to others bank. The good thing is you can easily link up with your current account if any.
Otherwise if you don't mind to have another account I would suggest you to open local bank account like CIMB.

Macsta

Is this actual fact? I know HSBC give a FD of 4.15% pa over 60 months and the only other (verifiable) higher rate is CIMB with a 6 month promotion of 4.4% reverting back to whatever standard rate is.

It seems the main banking players are HSBC, CIMB, Maybank and CitiBank but do any of them really stand out as exceptional in offers, I mean rates, not convenience factors such as HSBC Global Transfer etc.

eCdD

Very little banks offer 5 year FD, Bank Rakyat gives 4.70% (possible to negotiate up to 4.80) with interest paid monthly for this. Bank Islam is 4.65% for 2 years tenure with quarterly interest, but they don´t deal with MM2H clients.

CIMB, OCBC and others even not offer 2 year, 12 month is maximum. Hong Leong Bank stopped even 12 months at the moment, only short term possible.

You will find many HSBC customers who never in their life saw a "4" in front of their interest rates. The water under Penang Bridge is full of their salty tears A good agent, @kiat137 probably is one, would have protected from this.

But sure, some customers will be treated different by them, I do not doubt that 4.15% for 60 month is possible. No difficult guess, only veeeeeeeeeeeeeeeeeeery few.

Macsta

eCdD that surprises me (not the salty tears ) because I am no special customer (if only) and I can access 4.15% % FD 5 year deal through HSBC Premier online account without having to speak to a "relationship manager".

I haven't taken it as I was hoping rates would be on the way up

I assumed all HSBC expat customers were on the same rates but it seems I am naive

eCdD

I checked, you are absolutely right, this is indeed a rate that every HSBC customer can get:
HSBC Time Deposit Interest Rate
1* month to 2 months 2.90% p.a.
3 months to 5 months 3.00% p.a.
6 months 3.10% p.a.
7 months to 11 months 3.15% p.a.
12 months to 17 months 3.15% p.a.
18 months to 23 months 3.50% p.a.
24 months to 35 months 3.65% p.a.
36 months to 47 months 3.75% p.a.
48 months to 59 months 4.05% p.a.
60 months 4.15% p.a.

But will they allow you to use this as MM2H FD? You see, the problem is the very sad 3.15 for 12 month.

stepen

yes

kiat137

Please check with the bank. Usually MM2H FD they give lower rate or else same bank different branch they give different also.
Normally only first year bank give high interest. After a year will drop to base rate.

Pat in europe

Hi Macsta, when you said you could access 4.15% FD without having to speak to a relationship manager, did you mean that you just did the selection online, or you showed the relationship manager what you saw on the website and did not need to negotiate?
By the way, I have a general question: can one withdraw the interests earned on FD account whenever he/she wants? if not, all interests earned together with the original amount of FD will be stuck in the bank until the day one quits MM2H program.

Macsta

Hi Pat, once your online account is set up you can open a FD as you wish (and is available) so for instance when the bank open up an initial FD it maybe a month in duration (2.9%) but you have it on auto renew so the FD closes and opens monthly basically until you cancel it or the product is withdrawn.

So I can open a FD online for 60 months and the rate will default to 4.15% for this duration without speaking to a relationship manager.

I have seen it mentioned on previous posts that if you visit the relationship manager then you can negotiate an improved rate, I do not know if this is true, I have had email confirmation from my RM that the rates offered are all the same in branch or online. If anyone has a difference experience please comment.

You can choose to take a FD with end of year or half year profits and the interest earned can either remain in the FD or paid into your current account.

Just be aware these are Islamic FDs but this is just a wording method to comply with Sharia lending practices.

Ref your general question my MM2H FD paid out the interest after 12 months into my current account so it is not locked in.

stepen

And for 60 month FD interest can be paid monthly.

SushiFan

At CIMB is the FD fixed for 12 months and then automatically renewed. At the time of placing the FD you can indicate that you want to receive the annual interest in your regular bank account. This interest comes available at the end of the 12 month period.

Pat in europe

Thanks for all your replies about FD interest rates.
A couple of other FD questions:
1) I read before that some of you recommended opening 2 FD accounts for MM2H, 1 of which for withdrawal of money to pay for real property purchase, medical expenses or other allowed purposes. Is that absolutely necessary? Can the bank simply deduct the allowed amount from 1 single FD account?
2) in case of withdrawal requests for allowed purposes, will the bank reject such requests simply because of the FD duration? e.g. if I have chosen 60 months FD period and want to withdraw some money for real estate purchase in year 2, can the bank say I will have to wait for the FD duration to come to an end (i.e. end of 60 months) and only after that they can release the allowed amount?