Hong Kong Time Deposit Rates Rise Despite Lower Fed Hike Odds
SingTao · 2 SOURCES1 day ago2 MIN
Summary
Hong Kong banks have continued to lift Hong Kong dollar time-deposit rates this week, with more institutions offering rates above 3% and some promotional schemes advertising 4%, 10%, 12% and even 16% under specific conditions. Market pricing cited by Sing Tao showed the probability of a 0.25 percentage-point US Federal Reserve rate increase on October 28 at about 17% on October 22 and about 16% on October 23, with most expectations still leaning toward a pause in October and a 0.25-point increase in December . At the same time, US dollar time deposits in Hong Kong generally offer higher yields than Hong Kong dollar deposits, with some banks paying more than 4% . The latest moves suggest banks are still competing aggressively for deposits even as near-term Fed tightening expectations soften .
Key Points
- Ping An OneConnect Bank offered several one-month Hong Kong dollar promotions, including 16% for the first HK$100,000 via referral and 12% for new customers using designated codes by October 31 .
- HSBC offered a one-month 10% Hong Kong dollar deposit promotion for customers joining its trading programme and meeting specified monthly transaction requirements .
- China Construction Bank (Asia) offered new personal banking customers a three-month 5.88% Hong Kong dollar rate up to HK$50,000 until December 31 .
- Industrial and Commercial Bank of China (Asia) offered eligible new customers 6% for three months on HK$1,000 to HK$200,000 after opening accounts and completing reward requirements .
- In the US dollar market, four banks offered up to 4.1% for three-month deposits, while OCBC private banking customers could receive 4.3% for 12 months with equivalent new funds of at least HK$100,000 .
Why It Matters
For Hong Kong savers, the gap between headline promotional rates and standard deposit offers means returns depend heavily on conditions such as new-fund requirements, referral codes, transaction tasks and deposit caps . The comparison between Hong Kong dollar and US dollar deposits also matters because higher US dollar yields may be offset by foreign-exchange spreads when customers switch currencies .