HSBC has reduced deposit interest. The annual interest rate of 12-month Hong Kong dollar time deposits has been slightly reduced from a maximum of 3.5% to 3.4%. The 6-month deposit period has also been slightly reduced from 3.3% to 3.2%. The 3-month deposit period has not changed. The above annual interest rate is applicable to Jade or Premier customers, and 0.2 percentage points lower for HSBC One customers.
After HSBC reduced deposit interest, the time deposits of the four major banks have their own advantages and disadvantages. The Hong Kong dollar long-term interest rate is higher with Standard Chartered, and the US dollar fixed deposit is higher with Hang Seng. The following is a comparison of the Hong Kong dollar and US dollar time deposits of the four major banks:
4 major banks fixed deposit ratio combined
Recently, banks are mainly competing for short-term funds. The short-term interest rates for 6-month or 3-month deposits are relatively high, especially for US dollar deposits. On the contrary, in terms of Hong Kong dollar interest deposits, there is not much difference between the annual interest rates of new and old funds, and the discounts for new funds have no obvious advantages. Existing Hong Kong dollar funds can also have a high interest rate of close to 4%. The following is a comparison of Hong Kong dollars and US dollars, different deposit periods, and new and old fund discounts:
Hong Kong dollar new and old funds preferential comparison
Comparison of old and new funds in US dollars
Hong Kong dollar existing funds 3.8%
Near the end of the quarter, the bank has already stored enough Hong Kong dollar funds, and the current maximum of Hong Kong dollar fixed deposit is regarding 3.85, which is a discount for new customers of designated wealth management accounts in East Asia. Nanshang offers 3.8%, which is a new fund discount for wealth management customers, but the minimum deposit is 1 million yuan.
However, the discount for existing funds is not bad, with a maximum of 3.8%, which is a 12-month deposit discount offered by Xuyin Huili, and there is almost no minimum deposit threshold. The 6-month deposit period of Bank of Communications Hong Kong is also 3.7%, and the initial deposit amount is only 20,000 yuan. It needs to be opened through electronic channels, but there is no new capital requirement. In terms of the 3-month deposit period, Fubon’s 3.5% discount is the highest, but the minimum deposit is 1 million yuan, and it needs to be opened with mobile banking.
USD 5% for new funds
Banks are vying for short-term US dollar funds. Fubon and Bank of Communications Hong Kong both offer a 5% US dollar discount for 3 months. The initial deposits are US$100,000 and US$130,000, respectively.
In terms of the 12-month deposit period, many banks have recently reduced the long-term interest rate of the US dollar, but the maximum is still 4.8%, which is Fubon’s discount.
The discounts for existing funds in US dollars are also higher for short-term interest rates. Bank of Communications Hong Kong offers 4.75% for 6 months, and Chong Hing offers 4.7% for 3 months. As for the 12-month deposit period, the existing funds are currently the highest at 4.6% of the Bank of Communications.
10% high interest rate expires in March
In the second half of March, although the US Federal Reserve recently stated that it will not cut interest rates this year, but at the same time, the dot plot shows that the rate hike is coming to an end, and it is most likely to be completed following one more rate hike.
There are many high-interest time deposit discounts that expire at the end of this month, including 10.9% for Hang Seng, 10% for DBS, 6.8% for East Asia, 6% for Ping An OneConnect, and 4.8% for Bank of China Hong Kong. What are the conditions? The details are listed below:
High interest offer due at the end of March
10% high interest rate conditions are many, the highest long-term interest rate is 3.85%
As can be seen from the picture above, the 10% high interest rate that is regarding to expire has various restrictions. For example, for new customers or designated wealth management customers, the deposit period is at most 3 months, and some even only 1 week or 1 month. There is a limit on the deposit amount, which cannot exceed a certain amount, and the actual amount of interest earned in disguise is limited.
If it is a general discount with a longer deposit period, East Asia’s 3.85% and Nanshang’s 3.8% both have a 12-month deposit period, and both expire at the end of this month for the time being. for new customers. Others such as ICBC, Standard Chartered and CNCBI have a 3.6% discount, covering different deposit periods, but all need to be new funds.
Date this article was last updated: March 30, 2023
Written by: Liao Yiran
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