Opening an account in Hong Kong is still hot, and some banks have raised the threshold
In 2023, while deposit rates are on a downward trend, interest rates in Hong Kong are rising, with slogans such as "preferential interest rate of 13.8% p.a." and "up to 9% interest rate for new account opening" attracting a large number of depositors to open accounts in Hong Kong. A reporter from Beijing Business Daily noticed that since 2024, the enthusiasm of mainland depositors to open an account in Hong Kong is still undiminished, and many depositors have posted account opening strategies, compared with the previous high interest rate of more than 10%, what is the interest rate of bank fixed deposits in Hong Kong now? Is it cost-effective to go to Hong Kong to save money and "eat" the interest rate difference?
High-interest rates "cooling"
"I heard that bank account opening in Hong Kong is going to be tightened", Li Yang (pseudonym) used the weekend to temporarily go to Hong Kong to open a bank account and a brokerage account. "I flew to Shenzhen the night in advance, passed the customs early the next morning, and arrived at the bank branch in less than 20 minutes after the ride. Liyang said, "Because I had made an appointment with the bank in advance, I only waited less than 15 minutes to complete the account opening." This time she went to Hong Kong to open an account, on the one hand, she wanted to buy some fixed deposits, and on the other hand, she wanted to prepare for follow-up investment.
In 2023, mainland banks will repeatedly "cut interest rates", and deposit "special forces" have taken a fancy to the high-interest deposits launched by banks in Hong Kong, and have taken planes and high-speed trains to Hong Kong to win the interest rate difference between banks in different regions. How are fixed deposit rates performing today?
After a reporter from Beijing Business Daily randomly screened banks in Hong Kong, they found that compared with last year's deposit interest rate of more than 10 percent, the deposit interest rate of Hong Kong banks has dropped significantly. For example, if you deposit HK$1 million of new funds, the interest rate of a 3-month time deposit is 4.3%, and if the deposit funds are between HK$100,000 and HK$1 million, the interest rate of a 3-month time deposit for ordinary customers is 4%. Deposits of between $10,000 and $100,000 will be subject to a 3-month fixed deposit interest rate of 4.9%".
According to a customer service staff of China Merchants Bank in Hong Kong, "if the deposited funds are Hong Kong dollars, the annual interest rate of one-year time deposit is 2.5%, the annual interest rate of one-year US dollar time deposit is 3.5%, and the annual interest rate of one-year RMB time deposit is 1.85%, and the current one-year time deposit interest rate of our bank is relatively higher."
Deposit rates at foreign banks are slightly higher. According to a relationship manager of Standard Chartered Hong Kong, if the deposit funds are new funds, the interest rate for 3-month time deposit is 3.6%, 3.65% for 6-month time deposit, and 3.4% for 12-month time deposit if the deposit is new for HKD 10,000, and 3.8% for 12-month time deposit with a minimum deposit of US$2,000.
In addition, the bank also launched a marathon demand deposit, for three stages, each month of deposit increase, the interest rate will rise accordingly, specifically, if the funds are deposited on March 20, the deposit interest rate is 3.3%, the US dollar deposit interest rate is 4%; the second stage of deposit time is May 2 - June 2, the Hong Kong dollar deposit interest rate is 3.8%, the US dollar deposit interest rate is 4.8%; the third deposit stage is June 3 - July 2, Hong Kong dollar, The interest rate on US dollar deposits is 5%. In the process of depositing, if the depositor withdraws the funds in advance, he will not enjoy the corresponding deposit interest.
Dong Ximiao, chief researcher of Zhaolian, pointed out that in contrast, the interest rate on US dollar deposits is relatively high, and for ordinary investors, if they already have US dollars in their hands, they can make US dollar deposits and lock in returns. However, due to multiple risks such as changes in the exchange rate of RMB against the US dollar and compliance with overseas transactions, it is not recommended that investors temporarily exchange foreign currency for deposits.
Some banks have raised the threshold for opening an account
For depositors, in addition to whether the interest can cover the round-trip costs, depositors in Hong Kong should also consider whether they comply with the policies of the local opening bank. An investigation by a reporter from Beijing Business Daily found that at present, most banks in Hong Kong have a low threshold for opening an account, and as long as they pay a certain amount of funds, they can complete the account opening, but some banks have raised the threshold for opening an account.
CCB's customer service staff in Asia said, "If you want to deposit in Hong Kong, you need to make an appointment on the bank's official website. Mainland residents need to provide ID cards, Hong Kong and Macao travel permits, and the minimum deposit amount for opening an account is HK$1,000, if depositors need to open a separate investment account, they need to provide a valid address certificate within the past 3 months, and they do not need to provide it if they do not open an investment account."
"For depositors who open accounts in Hong Kong, our bank has no total asset requirement. According to the above-mentioned Standard Chartered Hong Kong customer service person, "If you do not have a Hong Kong ID card, the account opening capital needs to be 5,000 Hong Kong dollars (or equivalent currency), and you need to bring your mainland ID card, Hong Kong and Macao pass or passport to open an account." ”
China Merchants Bank Hong Kong Branch has raised the threshold for opening an account. Starting from 29 March, a minimum asset value of HK$8 million (or its equivalent) is required to deposit and maintain a total asset value of HK$8 million (or its equivalent) for opening a Hong Kong All-in-One Card account with the Bank. A reporter from Beijing Business Daily noted that as early as November 2023, the bank stipulated that new applications to open a Hong Kong all-in-one card account must meet the minimum requirement of HK$8 million (or equivalent currency) in total overseas assets, and the latest regulations have added the expression "need to deposit and maintain".
According to a relevant person from the bank, "the previous regulations require proof of assets of HK$8 million (or equivalent currency), and there is no requirement to deposit funds in the account, and the latest regulations make it clear that in addition to the need for proof of assets, it is also necessary to maintain a minimum capital requirement of HK$8 million (or equivalent currency)." If the customer promises to meet the minimum deposit requirements, the bank will give a grace period of 3 months, and the grace period will not exceed two times."
The Hong Kong all-in-one card account launched by China Merchants Bank Hong Kong Branch is not a VIP account of the bank, and this condition is also required if you want to open an account in Hong Kong and deposit time deposits. In this regard, the bank's customer service person explained, "Hong Kong card account is the current savings account of China Merchants Bank Hong Kong Branch, only overseas assets equivalent to more than 8 million Hong Kong dollars, provide the corresponding proof before accepting the account opening application, the reason for the higher threshold is to want to serve the existing customers, so as to carry out strategic adjustments."
Talking about the reasons why some banks have raised the minimum deposit threshold, Wang Pengbo, a senior analyst in the financial industry at Broadcom Consulting, pointed out that some banks have adjusted from the perspective of their own services, in order to do a good job in the financial business of high-net-worth individuals.
Careful consideration should be given to depositing in Hong Kong
The interest rate of ordinary time deposits is weak, and some depositors have also taken a fancy to the "Cross-border Wealth Management Connect 2.0" deposit products launched by banks, which are indeed eye-catching from the perspective of interest rate performance, with RMB deposit interest rates reaching about 6%, and Hong Kong dollars and US dollars being higher, which can reach about 9% and 10%.
However, it should be noted that the high interest rate benefit is a short-term behavior, and the promotion period of most banks is 1-3 months, and the high interest rate of some products will also end at the end of March this year, and the interest rate will be calculated according to ordinary deposit products after the end, which is no different from the interest rate of general time deposit products.
Mainland investors who wish to participate in the Cross-boundary Wealth Management Connect 2.0 and Southbound Scheme to purchase deposit products also need to be registered in the nine mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area (Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing) or have paid social security or individual income tax for five consecutive years in the nine mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area. and meet the requirements of two years or more of investment experience, and the month-end balance of household financial net assets in the last 3 months is not less than RMB 1 million, or the month-end balance of household financial net assets in the last 3 months is not less than RMB 2 million.
"You can try it in the short term, but you need to pay attention to the fact that the Cross-boundary Wealth Management Connect has certain investment threshold restrictions, and you should also pay attention to issues such as foreign exchange losses. Wang Pengbo reminded.
For investors, depositing in Hong Kong needs to be carefully considered. In the view of Liu Yinping, an analyst at the Rong 360 Digital Technology Research Institute, in recent years, investors have been enthusiastic about buying US dollars and Hong Kong dollars, but they should comprehensively consider the exchange rate risk, and there are more issues to consider when depositing in Hong Kong, including pass processing, making an appointment in advance, going to Hong Kong in person, exchange issues, exchange rate changes, etc., depositors should comprehensively consider their own conditions, including whether it is convenient to go to Hong Kong to handle deposits, how much is the amount of deposits, whether they can accept exchange rate fluctuations, etc., and then decide whether it is necessary to deposit in Hong Kong.
Wang Deyue, a lawyer at Beijing Xunzhen Law Firm, suggested that deposit interest rates are not the only factor to consider, and that other factors need to be considered when deciding whether to deposit money in Hong Kong, such as exchange rate risk, bank creditworthiness, and account opening costs. At the same time, it is also necessary to understand the relevant policies and regulations.
Beijing Business Daily reporter Song Yitong