Finance
HKD Time Deposit: 25% Promos,
What You Actually Earn
Gary Chung（FinKit Editor-in-Chief） · Published：September 19, 2026
Two numbers dominated Hong Kong's deposit market this week: 25% and 18%. In the same week, the three-month board rate at HSBC, Hang Seng and BOCHK sat at 2.40%. A tenfold gap is either an opportunity or a packaging trick — and the answer depends on whether you can see the distance between the headline rate and the cash you actually receive.
What happened: banks held board rates and competed on short-term offers instead
The US Federal Reserve raised rates by a quarter point on 16 September, its first increase in more than three years. The HKMA lifted its Base Rate from 4.00% to 4.25% the next day. Hong Kong banks did not follow with their Prime Rate: HSBC, Hang Seng and BOCHK kept Prime at 5.00%, and standard deposit board rates were left unchanged.
Instead, banks took a different route: leave the board rates alone and use short-term headline offers to win new customers and new money. That is how “25%” and “2.40%” can exist side by side — they serve entirely different pots of money, under entirely different conditions.
| Bank | Tenor | Rate | Minimum | Condition |
|---|---|---|---|---|
| Fusion Bank | 1 month | 25% | HK$20,000 | New customers, one allotment per person |
| ZA Bank | 7 days | 20% | HK$10,000 | New customers |
| PAObank | 1 month | 18% | First HK$100,000 | New customers, referred |
| CCB (Asia) | 3 months | 7.88% | HK$1,000,000 | New wealth customers, only 15% of funds earn this rate |
| Hang Seng | 2 months | 4% | HK$10,000 | Current-account growth must be met in Nov and Dec |
| HSBC / Hang Seng (bond refunds) | 3 months | 3% | HK$10,000 | Silver bond refund proceeds only (Hang Seng also opens it to age 60+) |
Source: Hong Kong Economic Times (hket.com) high-yield deposit table, 18 September 2026, and bank announcements. Offers carry quotas, deadlines and conditions, change without notice, and are subject to the bank's latest terms.
Step one: turn the annual rate into actual dollars
Every deposit uses the same formula: principal x annual rate x number of days / 365. However high the headline rate is, a short tenor dilutes the real return. This single point explains every eye-catching offer in the market.
| Offer | Rate | Cap | Tenor | You receive | Real return |
|---|---|---|---|---|---|
| Fusion Bank | 25% | HK$20,000 | 1 month | about HK$411 | 2.06% |
| PAObank | 18% | First HK$100,000 | 1 month | about HK$1,479 | 1.48% |
| Fusion Bank | 21% | HK$10,000 | 7 days | about HK$40 | 0.40% |
| ZA Bank | 20% | HK$10,000 | 7 days | about HK$38 | 0.38% |
| Hang Seng | 4% | up to HK$3m | 2 months | about HK$668 | 0.67% |
| Chong Hing Bank | 10% | HK$20,000 | 1 month | about HK$164 | 0.82% |
Calculated at the published caps, counting one month as 30 days, two months as 61 days and a year as 365 days. Actual interest is settled by the bank. The Hang Seng example assumes HK$100,000 that meets the current-account growth requirement.
Two things become obvious once you convert. First, the 25% offer is really a 2.06% return, because the money is only deposited for a month. Second, 20% for seven days is a 0.38% return — lower than the 0.59% you would earn from a plain three-month board rate at 2.40%. On the same HK$10,000, seven days at 20% pays HK$38; three months at the board rate pays HK$59.
Six conditions that change what you actually earn
1. Tenor. The annual rate only becomes a return once multiplied by the tenor. Money coming out of a 7-day offer has to go somewhere else immediately; if it only earns 1% in a savings account afterwards, the full-year outcome may still trail a straightforward 3-month or 6-month deposit. Short offers suit money that is genuinely idle for a few days, not long-term income planning.
2. Caps.Fusion Bank's 25% is fixed at HK$20,000 per allotment, one per customer. PAObank's 18% applies only to the first HK$100,000. Anything above the cap earns the board rate. The value of the offer is capped: HK$20,000 earns HK$411, and it does not become HK$20,550 because you happen to hold HK$1 million.
3. New customers only. The 25%, 20%, 18% and 10% offers are all new-customer or new-money offers. Existing customers of the same bank are usually ineligible, or limited to a lower rate. A person can only claim it once.
4. Tiered rates.CCB (Asia)'s 3-month 7.88% is a new wealth-customer offer, but only 15% of the new money earns 7.88%, with the remaining 85% at 2.85%. On HK$1 million the blended rate is about 3.60%: roughly HK$8,888 over three months, not the HK$19,430 a straight 7.88% would suggest — a gap of HK$10,542.
5. Linked tasks.Hang Seng's “time deposit plus current account” 4% requires a two-month deposit opened in September and current-account growth in both November and December; the extra interest is credited on or before 31 March 2027. Citibank's 4.2% similarly requires a balance-building task. Miss the task and the interest is reduced.
6. Currency conversion.The 7% at HSBC, 6.88% at Fubon and 17.7% at PAObank are “converted funds” offers: customers must first exchange foreign currency at that bank. The bid-offer spread is a real cost, and HSBC's 7% is limited to Premier Elite customers opening at a branch or by phone.
Two details that are easy to miss
What happens at maturity? If you do nothing, the deposit usually rolls over at the prevailing board rate, which is typically far below the promotional rate. Anyone using short offers should note the maturity date and decide in advance whether to renew, switch tenor, or move the money back to a savings account.
The cost of early withdrawal. Taking money out before maturity normally forfeits the interest, and some banks charge a fee. The money placed in a deposit should therefore be money you will not need during the same period — a point that is easily forgotten when chasing a high rate. If the money is actually your emergency reserve, confirm the liquidity need before fixing the tenor.
A three-step way to compare offers fairly
Step one: calculate the cash. Multiply each annual rate by its tenor to see what lands in your account. The rate is the raw material; the cash is the outcome.
Step two: look at how long and how much. Earning HK$400 over 7 days and over 3 months are different things. A 25% rate capped at HK$20,000 and a 25% rate capped at HK$1 million are even more different.
Step three: cost the conditions. Opening an account, completing a balance task, converting currency and maintaining current-account growth all take time and money. If that cost exceeds the extra interest, the offer does not apply to you.
| Your situation | Suggested approach | Reference |
|---|---|---|
| Under HK$20,000, no virtual bank account yet | Reasonable to take the headline offer, treated as a sign-up bonus | 25% for a month is about HK$411 |
| HK$100,000 or more sitting idle | Compare 3 to 12-month board rates instead of moving money for a headline | HK$1m for 12 months at 3.00% is about HK$3,000 |
| Emergency reserve or retirement income | Settle the liquidity question first, then choose the tenor | HK$100,000 for 3 months at 2.40% is about HK$59 |
Board rates sourced from the banks' official rate pages (verified September 2026). Pricing differs by bank, customer tier and type of funds; confirm with the bank before opening a deposit.
Frequently asked questions
Q: Is the 25% offer real?
A: Yes — it is an annual rate attached to a one-month deposit capped at HK$20,000 for a single new customer allotment. The cash you receive is about HK$411. Once the conditions are clear, the number stops being mysterious.
Q: Should I open a new account just for 25%?
A: It depends on your time. Opening an account can take from half an hour to a few days. If you already intend to use the bank, it is worth doing; if the only purpose is a few hundred dollars and the account will sit unused, weigh the effort.
Q: Do these offers affect my existing deposits?
A: No. Promotional rates apply to the specified newly opened deposits. Existing deposits continue at their agreed rate until maturity.
Q: If banks did not raise Prime, will deposit rates stay flat too?
A: Not necessarily. Prime and deposit board rates are separate pricing decisions. In a hiking cycle longer tenors still have room to move, while short headline offers are mainly a tool for attracting new money.
The bottom line
There is nothing wrong with high-yield deposit offers — they are a normal way for banks to win new customers, and the conditions are stated clearly. The problem is that “25%” is such a striking number that it hides three things: the cap, the tenor, and the attached conditions.
Convert the annual rate into cash, then place it against your own deposit size and liquidity needs. That turns these offers from something you fear missing out on into an ordinary tool — take it if you qualify, skip it if you do not.
Further reading: Fed Hikes 0.25%: HK Banks Hold Prime Rate at 5%, How Much Emergency Cash? 3 or 6 Months, Explained
Compare what different amounts and tenors actually pay with FinKit
Disclaimer: This article is for general information only and is not investment, deposit or financial advice. Promotional terms are drawn from the Hong Kong Economic Times (hket.com) high-yield deposit table dated 18 September 2026, bank announcements and media reports; board rates are sourced from the banks' official rate pages (verified September 2026). All rates, quotas, caps, deadlines and conditions may change or close at any time. Before opening any deposit or applying for any offer, refer to the bank's latest published terms. Interest examples are calculated as principal x annual rate x days / 365 and are illustrative only. Written 19 September 2026.