HK lenders offering time deposits at higher rates

Hong Kong banks are raising time deposit rates after interbank borrowing costs jumped, with some lenders now offering as much as 2.1 percent for six-month deposits and 2.3 percent for one-year terms.

The move comes as the Hong Kong Monetary Authority stepped in repeatedly to support the Hong Kong dollar at the weak end of its trading band, tightening liquidity and lifting interbank rates.

PAOBank recently lifted its 12-month rate to 2.2 percent and six-month to 2.1 percent, while also running a short-term promotional scheme of 16 percent on one-month deposits capped at HK$50,000 for new customers.

Airstar Bank is offering 1 percent on three-month deposits, 1.7 percent for six-months, 2.25 percent for nine-months, and up to 2.3 percent on one-year deposits, with a minimum placement of HK$1,000.

ZA Bank provides three- and six-month deposits at 0.51 percent and 1.61 percent respectively, but supplements these with coupons that can lift returns to as high as 18 percent for eligible clients.

Fusion Bank, backed by Tencent (0700), offers 2 percent on one-year deposits, and is running a campaign until October that allows new customers to earn 10.88 percent on one-month deposits, also capped at HK$50,000.

STAFF REPORTER