Bank promos abound as HK lenders court depositors

Hong Kong banks are stepping up deposit campaigns, as local funding costs remain elevated, even with markets fully pricing in a US Federal Reserve rate cut this month.

China Construction Bank (Asia) is giving new clients up to 5.88 percent on three-month Hong Kong dollar time deposits opened through its e-account service.

Among existing-customer offers, PAO Bank is currently leading with Hong Kong dollar time deposit rates of 2.5 percent for three months and 2.6 percent for six- and 12-month terms.

Fusion Bank has lifted its regular Hong Kong dollar deposit rates for existing customers to as high as 2.4 percent for three months, 2.35 percent for six months, and 2 percent for one year, with a minimum placement of just HK$1. The virtual lender is also providing a promotional one-month rate of 10.88 percent for new clients.

Bank of China (Hong Kong), which typically offers lower yields, recently raised its three- and six-month deposit rates to 2.2 and 2.3 percent.

STAFF REPORTER