Hong Kong Bank enters the war for deposits, offering heavy promotions, paying high interest rates. Add special privileges

The battle over Hong Kong banks' deposits is intensifying. The bank offers incentives to attract new money. Some pay interest as high as 5% per year on long-term deposits. and add various privileges

On January 8, 2567, Bloomberg News reported that The battle over bank deposits in Hong Kong is intensifying. The bank offers incentives to attract new money. Some banks pay interest of up to 5% per year on long-term deposits. and add various privileges such as waiving fees to receive new money Before the rate is expected to decrease at the end of 2567.

According to the latest information fromHong Kong Monetary Fund Found thatHigh deposit interest rates are attracting investors. After Hong Kong's Hang Seng stock index fell 14%, including a 14% drop in 2566, fixed deposits in Hong Kong stood at HK$9.29 trillion, or about $1.19 trillion, in November, or 24% more than a year ago. already

Meanwhile, banks are running promotions to attract customer deposits. For example, Mox customers can earn air miles with Hong Kong airline Cathay Pacific Airways Ltd. if they make regular deposits. It is the first bank in Hong Kong to offer pre-payment of interest on these products.

However, some banks are unwilling to enter into this price war. ZA Bank, the largest virtual bank in Hong Kong, said reserve chief executive Calvin Ng is not only competing on price. But it also competes with flexibility.

The bank is offering a 3.65% annual interest rate on four-month Hong Kong dollar deposits, which is not the highest in the city. DBS Group Holdings Ltd. is offering a 4% interest rate on new funds of at least HK$4.35. However, customers who take out money before the maturity date will receive their money back. and waive early withdrawal fees

Meanwhile, virtual banks are fighting for market share. Traditional banks still hold large amounts of deposits. The eight digital banks had a combined deposit of HK$8 billion by the first half of 3.22, or just 2566% of Hong Kong's total base, according to Quinlan & Associates.

refer : bloomberg.com

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