After going to Hong Kong to buy insurance exploded, this time going to Hong Kong bank deposits is hot again. Today, some netizens on major social media shared their strategies for depositing in major banks in Hong Kong, and some netizens even said that they waited for 7 hours to queue up to open an account at a bank.
In recent years, the mainland has been in the channel of interest rate cuts, deposit interest rates have been continuously reduced, and the income from buying wealth management from banks has also fallen sharply. Especially after the introduction of the new asset management regulations, many bank wealth management products have not been capital protected. In this context, many people have set their sights on Hong Kong. Since Hong Kong banks have a relatively high level of interest rates, since the beginning of this year, the boom in opening accounts in Hong Kong has been heating up, and many customers choose to go to Hong Kong banks to deposit money.
At 7 o'clock in the morning, some banks had mainland customers waiting in line to open an account, and even a netizen broke the news on the Internet that he waited for seven hours to open an account at a bank.
In the face of the enthusiasm of mainland tourists to deposit, many banks have extended their business hours to meet the service needs of cross-border customers. Like Hang Seng Bank, which extended its half-hour opening hours, HSBC's three branches have been open seven days a week since March this year.
Interest rates of up to 7% make customers flock to it
Hong Kong's exchange rate has always followed the dollar, and as long as the Fed raises interest rates, Hong Kong will follow suit. Since the Fed raised interest rates in 2022, the dollar index has been rising, the deposit rate in the United States has also been rising, and the interest rate level in Hong Kong has been increasing.
After several rounds of rate hikes, the Hong Kong Monetary Authority has raised its benchmark interest rate from 0.5% in 2022 to the current 5.75%. Interest rates in Hong Kong are already at a relatively high level.
Taking Hong Kong dollar time deposits as an example, the annualized interest rate of each bank ranges from 3.6%~4.43%, of which CMB Wing Lung Bank, DBS Bank, Nanyang Commercial Bank and China CITIC Bank (International) meet certain conditions, and the annualized interest rate can reach more than 4%.
For VIP customers above HK$1 million, they can apply for exclusive interest rates. Among them, Dah Sing Bank's new funds for designated wealth management customers can be deposited from HK$1 million, and the annualized interest rate can reach 4.7%. If Fubon Bank deposits HK$1 million in new funds, the annualized interest rate is 4.5%. Among them, China CITIC Bank International, the most eye-catching, launched an annualized interest rate of up to 7.28% from August 1 ~ August 30.
Such a high deposit income is still far from the wealth management income of about 2% in the mainland.
However, there are many customers who deposit US dollars, which have higher interest rates than Hong Kong dollars and renminbi.
While enjoying the benefits of high interest rates, it also faces greater risks.
The interest rates given by banks in Hong Kong are currency-specific. Deposit rates in RMB are very low, with the highest in the US dollar and the Hong Kong dollar second.
Therefore, many people have to exchange Hong Kong dollars first, then open an account to deposit money, and then convert into RMB after making a profit. This comes the risk of interest rate fluctuations. If the exchange rate of the Hong Kong dollar against the renminbi decreases in the future, even if the banks in Hong Kong give higher deposit interest, after converting into renminbi, the actual deposit interest rate will not be so high, and there may even be losses.
Take an example
At present, the average exchange rate of Hong Kong dollar to RMB is about 0.928, if 1 million RMB is converted into Hong Kong dollar about 1.077 million Hong Kong dollars, deposited in Hong Kong banks for one year, calculated at an annualized interest rate of 4.5%, the total principal and interest after maturity is 1.125 million Hong Kong dollars.
If the exchange rate remains unchanged after one year, the conversion of RMB principal and interest together will be about 1.04 million. Of course, if the exchange rate continues to rise, you may earn more.
However, if the exchange rate declines to about 0.82 in 2021, the principal and interest will become 922,000, but the principal will be lost by nearly 80,000 yuan.
Whether the exchange rate is high or low, who can say for sure. Therefore, there must be a corresponding high risk behind the high return, and friends who have this idea should still be cautious.
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