Best RMB Time Deposit Interest Rates and Offers in Hong Kong [November 2024]

01 November 2024

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Time deposits represent a cornerstone of conservative investment strategies, offering a blend of safety, predictability, and relatively attractive returns in an often-volatile financial landscape. Understanding the mechanics and benefits of time deposits is crucial for making informed decisions that align with one's financial goals and risk tolerance. 

Summary:

  • The best 12-month RMB time deposit rate were Fubon Bank and ICBC Asia at 1.50%, with a minimum deposit requirement of RMB 200,000.
  • The best 6-month RMB time deposit rates  was Fubon Bank  at 1.50%, with a minimum deposit requirement of RMB 200,000.  
  • The best 3-month RMB time deposit rates  was Fubon Bank at 1.50%, with a minimum deposit requirement of RMB 200,000.    
  • The best 1-month RMB time deposit rates was Fubon Bank at 1.50%, with a minimum deposit requirement of RMB 200,000.
  • StashAway USD Cash Yield offers a yield-to-maturity of 4.8%* p.a., with no minimum, no maximum deposit requirement, and no lock-ins.  

Best RMB Time Deposit Interest Rates Offered by Traditional Banks

Bank1 month3 months6 months1 yearMin Deposit
HSBC Premier 1.30%1.30%1.30%RMB 10,000
HSBC One1.00%1.00%1.00%RMB 10,000
Bank of China1.20%1.20%1.30%RMB 10,000
Standard Chartered1.00%1.00%1.10%RMB 10,000
ICBC Asia0.85%1.15%1.35%1.45%RMB 50,000
0.90%1.20%1.40%1.50%RMB 500,000
Fubon Bank1.50%1.50%1.50%1.50%RMB 200,000
Bank of Communications 0.60%1.00%1.30%1.40%RMB 10,000
0.90%1.30%RMB 500,000
Hang Seng Bank1.20%1.20%RMB 10,000
Chong Hing Bank1.00%1.30%1.30%1.20%RMB 5,000
Nanyang Commercial Bank 1.30%1.55%1.40%1.20%RMB 100,000
CMB Wing Lung Bank 0.45%1.10%1.10%1.10%RMB 10,000
Shanghai Bank 0.90%1.40%1.40%1.40%No min
DBS Bank0.70%0.90%1.10%1.00%RMB 40,000
Public Bank (Hong Kong)1.30%1.40%1.40%1.40%No min

* Rate as of 1st November 2024

Best RMB Time Deposit Interest Rates Offered by Virtual Banks

Bank1 month3 months6 months1 yearMin Deposit
Fusion Bank1.00%1.20%1.20%1.50%No min
AirStar Bank0.05%0.70%0.80%1.10% (360 days)RMB 1,000
ZA Bank0.10%0.31%0.41%0.51% (360 days)RMB 1

* Rate as of 1st November 2024

Earn Up to 4.8%* p.a. with StashAway USD Cash Yield

When looking for alternatives to traditional RMB time deposits, StashAway's USD Cash Yield is a standout option, offering up to 4.8%* p.a. (as of October 2024) with no minimum or maximum deposits requirement. This yield is achieved through investments in ultra-short-dated US Treasuries, which are known for their safety and stability. Unlike fixed deposits, this portfolio has no lock-in periods, allowing for flexible withdrawals and transfers.

How to decide between RMB Fixed Deposit and USD Fixed Deposit

When deciding between RMB fixed deposits and USD fixed deposits, there are several factors to consider. Here are some key points to help you make a decision:

  1. Currency Considerations: The currency of RMB has been relatively stable in recent years, with a gradual appreciation trend against major currencies like RMB. On the other hand, HKD and RMB are pegged between 7.75 and 7.85. FX fluctuation is generally minimal. If you have short-term cash needs in HKD, you may opt for HKD fixed deposits that can provide stability and convenience in managing your money.
  2. Interest Rates: Compare the interest rates offered on RMB fixed deposits and RMB fixed deposits. RMB fixed deposits generally provide a higher interest rate than RMB fixed deposits. Analyze the potential earnings from each currency and weigh them against the associated currency exchange risk.
  3. FX Conversion Fee: Currency conversion often involves an implied fee reflected in the exchange rate spread. Traditional banks typically offer less favorable foreign exchange rates compared to other financial institutions. Therefore, if you plan to convert HKD to RMB, it's essential to consider these fees to secure a better rate.
  4. Diversification: Consider your overall investment portfolio and the importance of diversification. If your investment portfolio is already heavily HKD-based, adding RMB fixed deposits can provide diversification and potentially hedge against currency risk.
  5. Accessibility and Liquidity: Consider the accessibility and liquidity of the fixed deposits. Evaluate the ease of depositing and withdrawing funds in both currencies. Assess any potential restrictions, penalties, or fees associated with early withdrawal or premature termination of the fixed deposit.

Tips on How to Compare and Choose the Best Time Deposit Rates

  1. Research and Compare Rates: Start by checking the interest rates offered by various banks, including both traditional and virtual banks. Websites and financial comparison tools can provide up-to-date information on the rates available for different terms and deposit amounts.
  2. Consider the Term Length: The length of the time deposit can affect the interest rate. Typically, longer terms offer higher rates. Assess your financial needs and decide how long you can afford to lock in your money without access.
  3. Check for Promotional Offers: Banks often offer promotional rates for new customers or for larger deposits. These promotions can significantly boost your interest earnings but be sure to read the terms and conditions carefully,
  4. Understand the Fine Print: It is crucial to read the terms and conditions associated with the time deposit. Pay attention to details regarding the renewal policies, early withdrawal penalties, and any conditions that might allow the bank to change the interest rate.
  5. Evaluate the Credibility of the Financial Institution: Opt for reputable banks that are well-regulated and have a solid track record. This ensures the safety of your deposits.
  6. Be careful of the HKD/RMB Foreign Exchange Spread: There are conversion costs and handling fees generated through the process of exchange. Make sure the interest earned is able to cover the exchange spread.

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