I was opening a new HSBC advance account which entitles me 5% FD rate for 3 months placement, with conditions that it must be fresh fund. So I just transferred some of my $ sitting in other banks into HSBC and open the one-time preferential FD rate account

It's actually the HSBC Advance Manager that advices me that I can do so

transfer out and terminate

You can downgrade an advance acc to normal CA acc at anytime u want