Enjoy stable and predictable investment income
While it's important to save up some liquid cash for emergencies, getting bonds / certificates of deposits (CDs) in your portfolio can offer you a better return than leaving all your cash in your savings account.
At HSBC, we have several different types of bonds/CDs for our customers:
- BondsBonds issued by governments, including China, the US and Hong Kong, local quasi-government bodies, supranationals and well-known corporations around the world denominated in major currencies.
- CDsCDs issued by different high credit quality financial institutions like banks.
Key benefits
- Bonds/CDs pay a steady and predictable income generated by interest throughout their life
- A potential for capital gains when you buy and sell bonds/CDs
- Your principal is protected at maturity so long as issuer does not go default
- Wide selection of tenors or terms to suit your needs, from 1 to 30 years
For more information, read our "Why consider" fact sheet and latest update on product risk ratings.
How to buy bonds/CDs online
Don't have an HSBC investment account?
Need help?
By phone
Want to find out more?
Whether you are just starting out, or you are looking for a new opportunity, here are some ideas to get you going :
Alternatively, you can use our bond screener to search across all bonds and CDs.
How do bonds/CDs work?
Here is a simple example to show how you can earn stable interest income with a bond/CD.
Illustrative example
Face value | Offer price |
Coupon rate |
Coupon frequency |
Maturity date | Initial payment |
---|---|---|---|---|---|
USD100,000
|
98% | 3% | Annually |
1 Jan, Year 3 |
purchase amount USD98,000 + accrued interest* USD41.67 = USD98,041.67 |
Face value |
USD100,000
|
---|---|
Offer price |
98% |
Coupon rate |
3% |
Coupon frequency |
Annually |
Maturity date |
1 Jan, Year 3 |
Initial payment |
purchase amount USD98,000 + accrued interest* USD41.67 = USD98,041.67 |
Fees
Service charges | Handling fees |
---|---|
Safe custody |
Waived |
Interest Collection | Waived |
Redemption at maturity | Waived |
Transfers into HSBC1 | Waived |
Transfers out of HSBC1 |
Through Central Money Market Unit (CMU): HKD500 per note/bond per transfer. Through Euroclear/other overseas clearing houses/bank: HKD1,000 per note/bond per transfer |
Service charges |
Safe custody |
---|---|
Handling fees |
Waived |
Service charges | Interest Collection |
Handling fees | Waived |
Service charges | Redemption at maturity |
Handling fees |
Waived |
Service charges | Transfers into HSBC1 |
Handling fees | Waived |
Service charges |
Transfers out of HSBC1 |
Handling fees |
Through Central Money Market Unit (CMU): HKD500 per note/bond per transfer. Through Euroclear/other overseas clearing houses/bank: HKD1,000 per note/bond per transfer |