Expired Hot Deals

[HSBC] HSBC investment - get a bonus up to $1,450

  • Last Updated:
  • Sep 19th, 2019 9:40 am
[OP]
Newbie
Dec 30, 2010
37 posts
50 upvotes
North York

[HSBC] HSBC investment - get a bonus up to $1,450

Deal Link:
Expiry:
November 1, 2019
Retailer:
HSBC
More offers from HSBC
HSBC Canada is now offering investment bonuses as below:

1) Long term investing bonus offer:
Enjoy a bonus up to $1,200 when you transfer your RRSP, TFSA, RRIF or non-registered funds from your HSBC account or any other financial institution and invest in a wide range of HSBC Mutual Funds or an HSBC World Selection Portfolio account with HSBC Investment Funds (Canada) Inc.

2) Regular investing bonus offer:
Enjoy a bonus $150/$250 when you invest a minimum of $1,500 in a HIFC account and set-up regular contributions ( $150/$250 monthly) under a HIFC Pre-Authorized Contribution Plan (PAC Plan).

Note:
*Complete and provide us the Bonus Offer form and, if applicable, the transfer in authorization or transaction form by November 1, 2019 to any of these eligible HIFC accounts and you’ll be eligible to receive our special bonus;
*Any Transfer-In Amount from an external financial institution must be received by HIFC and invested by December 2, 2019;
*The Investment Amount must remain invested in each applicable Bonus Eligible Account until at least November 2, 2020 (inclusive);
*From June 1, 2019 to November 2, 2020 (inclusive), any withdrawals/transfers out from any of the Bonus Eligible Accounts where the transfer amount was invested will decrease this amount by the amount withdrawn/transferred, and may lower the Bonus Amount;
*Not allowed to purchase HSBC Money Market Funds.

You may use one source to enjoy two bonus offers combined.

On top of that, the investment offer bonus can be stacked with HSBC welcome bonus for opening Chequing accounts (up to $500) .
Last edited by nunoicx on Sep 17th, 2019 8:29 pm, edited 1 time in total.
10 replies
Newbie
Jul 9, 2019
12 posts
16 upvotes
hmm to bad I don't have $100,000 laying around somewhere
you got to be rich to be richer
[OP]
Newbie
Dec 30, 2010
37 posts
50 upvotes
North York
If you have $10,000 around, you may open an Advanced chequing account, receiving $300 welcome bonus; then open a HSBC Investment Funds account Registered or Non-Registered, purchasing $10,000 mutual funds, get $100 investment bonus; finally, setup a monthly Pre-Authorized Contribution Plan for $150 for a year, receiving another $150 bonus.

So you get $550 against $11,800 (10000 + 150*12) for a year. (Mutual funds value may fluctuate depends on the market performance though)

The $10,000 mutual funds will be eligible for waiving the monthly fee for Advanced account.
Jr. Member
Jul 8, 2017
156 posts
118 upvotes
So if I invested $100k, I will get a 1.2% return ($1200) per annum but the funds must be held for 1 year (Nov 2020) or you forfeit the bonus.

I have no idea what basic savings / HISA rates HSBC returns or how their mutual funds stand (which I cant even invest in as a US citizen) but not sure if this deal is too good.

Im keeping all my money with B2B @ 3.30% until it dies, after which ill chase the next highest HISA.
Deal Fanatic
Aug 15, 2015
7790 posts
3942 upvotes
ON
Or you can get 550 with 105$ deposited in a free chequing acct and a referral just by paying your bills...easy decision.
Member
Aug 5, 2018
477 posts
622 upvotes
Please try to understand the deal first, before making your post.

This is not even close to a hot deal, it is cold, if not ice cold.

First, let's lay the basis of this deal.
You are investing in a mutual fund from HSBC, which has annual MER of about 3% across the board.
That is to say, you pay $300 to HSBC every year, for every $10,000 you invest.

So now onto the "deal".
First, whatever you invest with this deal, you need to invest a minimum of 1 year, (not touching the money) in order to get the payout.
So you at least need to pay 3% of whatever you invest with HSBC.

For the "long term" investment options, across the board, the bonus is about 1%, up to 1.2% for 100k.
In other words, you are paying $180 -$200 to HSBC, for every $10,000 you invest into this "deal".

I'm out $180, if I give $10,000 to HSBC?
This is a deal ??

Now onto the "regular":
You invest $1500 now, and invest $250 for every month for a year, for a total of $4500.
Then you would get $250.

$250 / $4500 = 5.5%
If we subtract the 3% MER, you are possibly ahead by 2.5%.

However, keep in mind that some funds are actually in USD, and HSBC gladly charges 2.5% to 3% for the forex exchange fee from CAD to USD.
In fact, the $250 bonus is automatically invested into the fund (not given to you), so it would be converted to USD automatically, taking 2.5% to 3% with it.
So if you invest in a USD fund, you would be out 3% MER + 2.5% forex fee, for a total of 5.5%, if not more.

As for global funds denominated in CAD, they would have higher MER to account for the forex fee.

So you gained $0 on a USD fund, on this deal.
Potentially, you gain ~1% in investing in a CAD denominated fund, which is $45 out of $4500

https://www.hsbc.ca/content/dam/hsbc/ca ... -07-en.pdf
Last edited by xx1what on Sep 17th, 2019 11:12 pm, edited 1 time in total.
Sr. Member
Aug 7, 2014
560 posts
230 upvotes
nunoicx wrote:
Sep 17th, 2019 8:19 pm
HSBC Canada is now offering investment bonuses as below:

1) Long term investing bonus offer:
Enjoy a bonus up to $1,200 when you transfer your RRSP, TFSA, RRIF or non-registered funds from your HSBC account or any other financial institution and invest in a wide range of HSBC Mutual Funds or an HSBC World Selection Portfolio account with HSBC Investment Funds (Canada) Inc.
I dont think this is a good deal getting $1200 bonus after transferring in $100,000+ into HSBC that requires you to invest HSBC investment products. I assume that these products may charge high fees. For example, the hsbc US equity fund charges 2.26% MER (management expense ratio), while a similar non-hsbc product (Vanguard S&P500 ETF) charges only 0.08% MER. That is, you are paying 2.18% more in MER a year, or $2,180 a year more to get $1200 hsbc bonus.

HSBC US EQUITY – MER 2.26%
http://hsbc.morningstar.ca/fund/fQuote? ... ture=en-CA

VANGUARD S&P 500 – MER 0.08%
https://www.morningstar.ca/ca/report/et ... 0P0000XD8M
Jr. Member
Jul 8, 2017
156 posts
118 upvotes
Other posts are correct. I wouldn't even use "deal" in the terminology, this is just a financial punishment offer
Sr. Member
User avatar
Dec 26, 2010
862 posts
197 upvotes
Markham
psudolam wrote:
Sep 17th, 2019 11:05 pm
I dont think this is a good deal getting $1200 bonus after transferring in $100,000+ into HSBC that requires you to invest HSBC investment products. I assume that these products may charge high fees. For example, the hsbc US equity fund charges 2.26% MER (management expense ratio), while a similar non-hsbc product (Vanguard S&P500 ETF) charges only 0.08% MER. That is, you are paying 2.18% more in MER a year, or $2,180 a year more to get $1200 hsbc bonus.

HSBC US EQUITY – MER 2.26%
http://hsbc.morningstar.ca/fund/fQuote? ... ture=en-CA

VANGUARD S&P 500 – MER 0.08%
https://www.morningstar.ca/ca/report/et ... 0P0000XD8M
If you're going to compare funds and ETFs, at least compare it with the proper benchmark for its category.
Sure its not the best fund, but its annualized 5 year return outperforms the russell 1000, which is its proper benchmark. Net of fees.

HSBC U.S. Equity Fund Investor Series (MER = 2.26%)
Fund Facts

Vanguard Russell 1000 ETF (MER = 0.12%)

With an apple to apple comparison and using your logic, if you place the same amount 5 years ago, the HSBC fund will yield (11.49 - 10.23 = 1.36%) more each year, net of fees.

Not sure why everyone focuses so much on MER. If it makes you more money, who cares?
Sr. Member
Aug 7, 2014
560 posts
230 upvotes
Expliciate wrote:
Sep 18th, 2019 10:28 pm
If you're going to compare funds and ETFs, at least compare it with the proper benchmark for its category.
Sure its not the best fund, but its annualized 5 year return outperforms the russell 1000, which is its proper benchmark. Net of fees.

HSBC U.S. Equity Fund Investor Series (MER = 2.26%)
Fund Facts

Vanguard Russell 1000 ETF (MER = 0.12%)

With an apple to apple comparison and using your logic, if you place the same amount 5 years ago, the HSBC fund will yield (11.49 - 10.23 = 1.36%) more each year, net of fees.

Not sure why everyone focuses so much on MER. If it makes you more money, who cares?
I was just making a point that HSBC's bonus ties to buying its products that charges high fees.

It appears to me that u dont like VFV (14.22% 5 yrs return) outperforming your HSBC US Equity in the 5 yr returns with lower MER, and u pick the Vanguard Russell 1000 with lower 5 yrs return to compare. VFV and HSBC US Equity have similar # holdings and the same top 5 largest holdings (Microsoft, Amazon, etc), while the Vanguard Russell 1000 does not.

I look at this bonus promotion this way from my earlier post, as I have just transferred my TFSA account to HSBC. For US exposure, my TFSA holds a lot of VFV. The decision I have to make is whether to get the $1200 bonus from HSBC, that requires me to sell my VFV (14.22% 5 yrs return and 0.08 MER) and buy the HSBC US Equity (11.49% return and 2.26% MER). The answer is obvious, as I analysed in my earlier post. I keep my VFV, and I dont want the $1200 bonus. I dont care that the HSBC US Equity outperforms the Vanguard Russell 1000.

You should know that the past good performance of a mutual fund does not mean it will do well in future. An investor should consider the MER as well as past performance in buying an ETF or mutual fund.
Deal Addict
Jul 26, 2006
2105 posts
368 upvotes
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nunoicx wrote:
Sep 17th, 2019 8:41 pm
If you have $10,000 around, you may open an Advanced chequing account, receiving $300 welcome bonus; then open a HSBC Investment Funds account Registered or Non-Registered, purchasing $10,000 mutual funds, get $100 investment bonus; finally, setup a monthly Pre-Authorized Contribution Plan for $150 for a year, receiving another $150 bonus.

So you get $550 against $11,800 (10000 + 150*12) for a year. (Mutual funds value may fluctuate depends on the market performance though)

The $10,000 mutual funds will be eligible for waiving the monthly fee for Advanced account.
Your analysis of the pluses would be better with the sales charges/loads of investing that $10,000 which will probably kill the deal.

https://www.barrons.com/articles/mutual ... 1568751799

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