Some local banks slashed the time deposit rate by 0.8 percentage points after the US Federal Reserve cut its interest rates.
Citibank Hong Kong said new clients, who open Hong Kong dollar fixed deposits with HK$50,000 or above, will be offered a maximum interest rate of 3.5 percent per annum, a reduction from the previous 4.3 percent.
Meanwhile, Dah Sing Banking (2356) said its six-month deposits for selected customers provided an interest rate of 3.3 percent, compared to an offer of up to 3.7 percent earlier.
The cut in time deposit rates may make the latest batch of silver bonds more attractive, which offers at least a 4 percent return. The subscriptions for the ninth batch of silver bonds open at 9am on September 30 and end at 2pm on October 14.
Last week, the Hong Kong administration unveiled the ninth batch of three-year silver bonds, totaling HK$50 billion, to residents aged 60 or above before 2025. These bonds will offer a minimum guaranteed rate of 4 percent, with the possibility of increasing the size to HK$55 billion depending on demand. With a tenor of three years, the silver bonds allow a minimum investment of HK$10,000 per board lot and a maximum of HK$1 million. Interest will be paid every six months.
Staff reporter
