Investing
iBond vs Silver Bond vs Green Bond:
Which Is the Best Buy in 2026?
Gary Chung（FinKit Editor-in-Chief） · Published：July 21, 2026
The Hong Kong government issues three types of retail bonds — iBond (inflation-linked), Silver Bond, and Green Bond — all denominated in HKD, with 100% principal protection and near-zero risk. But the mechanics of the three bonds are quite different: some are available to everyone, others only to seniors; some can be sold anytime, others must be held to maturity. This article breaks down their differences, rate mechanisms, subscription strategies, and helps you pick the right one.
One-Minute Guide to the Three Government Retail Bonds
All three are issued by the Hong Kong government, 3-year tenor, HK$10,000 per board lot, 100% principal repayment at maturity. They look similar on the surface, but their target users, rate mechanisms, and liquidity are distinctly different.
| Feature | iBond | Silver Bond | Green Bond |
|---|---|---|---|
| Target Users | All HK residents aged 18+ | HK residents aged 60+ | All HK residents aged 18+ |
| Purpose | Inflation-hedging savings tool | Senior retirement protection | Green sustainable project financing |
| Guaranteed Min. Rate | 2.00% – 4.75%* | 3.50% – 5.00%* | 2.50% – 4.75%* |
| Rate Mechanism | CPI-linked vs guaranteed rate (the higher) | Fixed guaranteed rate (not CPI-linked) | CPI-linked vs guaranteed rate (the higher) |
| Secondary Market | ✅ Tradable on HKEX | ❌ Non-transferable (sell back to govt only) | ✅ Tradable on HKEX |
| Per Lot Entry | HK$10,000 | HK$10,000 | HK$10,000 |
| Max Allocation | Varies (typically 100 lots) | 100 lots (HK$1,000,000) | Varies (typically 100 lots) |
| Interest Tax | Tax-exempt | Tax-exempt | Tax-exempt |
| Latest Issue | 2023 Series 8 (4.75% guaranteed) | 2025 (4.00% guaranteed) | 2023 Series 2 (4.75% guaranteed) |
* Guaranteed rate varies by series. Government adjusts based on market conditions. Ranges shown are from recent series.
🔵 iBond: Inflation-Linked, Rate Follows CPI
iBond is Hong Kong's longest-running retail bond, first issued in 2011 with 8 series to date. Core design: rate = the higher of CPI inflation or the guaranteed rate.
How Is the Rate Calculated?
Interest is paid semi-annually. Each payment's annualised rate is the higher of:
- Floating rate: Average year-on-year change in the Composite Consumer Price Index (CPI) over the previous 6 months
- Fixed rate: That series' guaranteed minimum rate (Series 8: 4.75%)
📊 Worked Example
Suppose you bought 10 lots of iBond (HK$100,000). Current CPI is +2.8% YoY, guaranteed rate is 4.75%:
→ Higher rate taken: 4.75%
→ Semi-annual interest: HK$100,000 × 4.75% × ½ = HK$2,375
→ 3-year total interest: HK$2,375 × 6 = HK$14,250 (assuming CPI stays below 4.75%)
Historical iBond Guaranteed Rates
| Series | Year | Guaranteed Rate | Subscription |
|---|---|---|---|
| 1 | 2011 | 1.00% | 0.4x oversubscribed |
| 2 | 2012 | 1.00% | 0.5x |
| 3 | 2013 | 1.00% | 0.6x |
| 4 | 2014 | 1.00% | 0.8x |
| 5 | 2015 | 1.00% | 1.2x |
| 6 | 2016 | 1.00% | 0.8x |
| 7 | 2020 | 2.00% | 1.3x |
| 8 | 2023 | 4.75% | 0.6x |
Series 8's jump to 4.75% reflects the 2022–2023 US rate-hiking cycle's impact on HK rates. The low-rate era (2011–2016) kept guaranteed rates at 1%.
iBond's Biggest Selling Point: Secondary Market Liquidity
iBonds are listed on HKEX (e.g. stock code 4231), meaning you don't need to wait 3 years to get your money back. You can sell on any trading day through your stock account — market price typically floats around par (HK$100) ±2%. This is crucial for investors who need capital flexibility.
🟡 Silver Bond: Senior-Exclusive, Highest Guaranteed Rate
Silver Bond is designed exclusively for Hong Kong residents aged 60+. Key difference from iBond: the rate is a fixed guaranteed rate, not CPI-linked — and it's typically the highest among the three bonds.
How Is It Different From iBond?
- Rate mechanism: Silver Bond uses a fixed guaranteed rate (not CPI-linked); iBond is CPI-linked with a floor
- Eligibility: Only HKID holders aged 60+
- Secondary market: Silver Bond is non-transferable — no secondary market. Holders can only hold to maturity or sell back to the government at par (HK$100) under specific conditions
- Guaranteed rate: Silver Bond is typically 0.5–1.5pp higher than iBond of the same period
- Priority allocation: Older applicants receive more lots
📊 Silver Bond Worked Example
A 65-year-old buys 100 lots of Silver Bond (HK$1,000,000), guaranteed rate 4.00%:
→ Annual interest: HK$1,000,000 × 4.00% = HK$40,000
→ Monthly equivalent: ~HK$3,333
→ 3-year total interest: HK$120,000
→ Full principal returned after 3 years: HK$1,000,000
Silver Bond Rate History
| Year | Rate | Eligibility | Max Allocation |
|---|---|---|---|
| 2016 | 2.00% | 65+ | 4 lots |
| 2017 | 2.00% | 65+ | 5 |
| 2018 | 3.00% | 65+ | 8 |
| 2019 | 3.00% | 65+ | 10 |
| 2020 | 3.50% | 65+ | 14 |
| 2021 | 3.50% | 60+ | 15 |
| 2022 | 4.00% | 60+ | 20 |
| 2023 | 5.00% | 60+ | 23 |
| 2025 | 4.00% | 60+ | 25 |
Eligibility age lowered from 65 to 60 in 2021. 2023 rate hit 5.00% (all-time high); 2025's 4.00% reflects the declining rate environment.
⚠️ Silver Bond's Most Important Restriction: Non-Transferable
Silver Bond has no secondary market and cannot be transferred to another person. This means your capital is locked for 3 years — if you urgently need money, you can only sell back to the government at par (no market gains). For retirees, make sure you have enough liquid funds for emergencies before locking large sums into Silver Bonds.
🟢 Green Bond: Same as iBond, Funds Used for Environmental Projects
Green Retail Bond's structure is nearly identical to iBond: 3-year, CPI-linked, guaranteed minimum rate, tradable on HKEX. The only difference — the proceeds must be used for green sustainable projects (e.g. renewable energy, waste management, green buildings).
📊 Green Bond Issuance History
| Series | Year | Guaranteed Rate | Tenor |
|---|---|---|---|
| Series 1 | 2022 | 2.50% | 3 years |
| Series 2 | 2023 | 4.75% | 3 years |
Green Bond and iBond have identical rate mechanisms — the higher of CPI or the guaranteed rate. So from a pure investment return perspective, Green Bond = iBond — no difference. Choosing between them is mainly a personal values question: do you want your money supporting environmental projects?
⚔️ Head-to-Head: Which One Is Right for You?
👤 Working Adults (under 60)
→ iBond or Green Bond (identical returns)
Silver Bond isn't available to you (age requirement). iBond/Green Bond suit parking some emergency funds — 3-year, sellable anytime, stable returns. If both are issued simultaneously, pick the one with the higher guaranteed rate.
👴 Retirees (60+)
→ Silver Bond first
Guaranteed rate is usually the highest (5.00% in 2023) with priority allocation — the older you are, the more lots you get. But remember capital is locked for 3 years — ensure adequate liquid cash before going all-in.
💼 Those Needing Capital Flexibility
→ iBond / Green Bond (not Silver Bond)
Silver Bond has no secondary market — urgent cash needs mean selling back at par only. iBond and Green Bond can be sold on HKEX anytime, far more liquid.
🌱 ESG / Green-Minded Investors
→ Green Bond
Returns identical to iBond, but funds go to green projects. If ESG investing matters to you, Green Bond is the most direct choice.
💰 Government Bonds vs Bank Time Deposits: Which Pays More?
Many ask: why lock into a 3-year bond when you can just do a bank time deposit? Both are low-risk, HKD-denominated, but have key differences:
| Factor | Government Retail Bonds | Bank Time Deposits |
|---|---|---|
| Rate Certainty | Locked for 3 years, guaranteed rate unchanged | Typically 3–12 months; rate may drop sharply at renewal |
| Minimum Entry | HK$10,000/lot | Varies by bank, some from HK$10,000 |
| Early Withdrawal | iBond/Green: sellable on secondary market; Silver: not possible | Can withdraw early but lose interest (or face penalty) |
| Upside if Inflation Rises | Yes — if CPI exceeds guaranteed rate, you earn more (iBond/Green) | Fixed rate — inflation doesn't benefit you |
| Deposit Protection | Fully guaranteed by government (not DPS) | DPS covers up to HK$500,000/bank |
| Interest Tax | Tax-exempt | Tax-exempt |
📊 Example: HK$500,000 — Bonds vs Time Deposits
Comparing Silver Bond (guaranteed 4.00%/3yr) vs rolling bank time deposits (assuming rates decline year by year):
The key is "rate lock-in" — in a rate-cutting cycle, locking 3 years at a high rate is a clear advantage. But if you expect rates to keep rising, time deposit flexibility becomes more attractive.
📝 Practical Subscription Guide
How to Subscribe
All three retail bonds are subscribed through banks or brokerages; the process is straightforward:
- Government announces issue details (usually 2–4 weeks in advance)
- Submit application through any placing bank (HSBC, BOCHK, Hang Seng, etc.) or brokerage during the subscription period
- Can use cash or margin financing — watch margin interest costs
- Allocation results announced; refund or top-up settled
- iBond/Green Bond listed on HKEX; Silver Bond deposited to bond account
Subscription Tips
- Don't use margin financing — retail bond allocation tends to be broad-based; oversubscription multiples are typically modest (0.5–1.5x). Margin interest could eat your first six months of interest.
- Watch for bank subscription fees — some charge handling fees (HK$50–200). Factor this into your cost.
- Silver Bond: apply for multiple lots — seniors can apply for up to 100 lots. If you have spare cash, apply for more. Allocation favours older applicants: age 60–65 may get 10–15 lots; 70+ may get 20–25.
- iBond/Green: watch market price — secondary market prices typically hover around HK$100 (par) ±2%. If you missed the subscription window, you can buy on HKEX at roughly the same yield.
- Stagger your allocation — don't put all spare cash into a single series. If the government issues annually, buy across 3 years with staggered maturities for improved liquidity.
💡 Quick Reference
- 🔵 iBond: Inflation protection + high liquidity → suits most people
- 🟡 Silver Bond: Highest guaranteed rate → suits age 60+ (provided you don't need the money soon)
- 🟢 Green Bond: Same as iBond + ESG → suits environmentally-conscious investors
- 🏦 Time Deposit: Short-term flexibility → suits those who don't want locked-in capital
❓ FAQ
Q: If inflation turns negative (deflation), will iBond pay no interest?
No. iBond has a guaranteed minimum rate — even if CPI goes negative, you still receive the guaranteed rate (e.g. 4.75% for Series 8). The guaranteed rate is the floor; it won't go below that.
Q: Can Silver Bond be sold back to the government early?
Yes, but only at par (HK$100 per unit), with no opportunity for price gains. And you won't receive interest after the sale. This mechanism is for emergencies, not an investment strategy.
Q: Can non-permanent residents subscribe?
Anyone holding a valid Hong Kong Identity Card (including non-permanent residents), aged 18+ (60+ for Silver Bond), can subscribe. Those on work/student visas without a HKID are not eligible.
Q: What if the government defaults?
The Hong Kong government's credit rating is extremely high (S&P AA+, Moody's Aa3) — default risk is near zero. And these bonds are HKD-denominated, so there's no FX risk. They can essentially be considered as safe as bank deposits.
Q: When is the next iBond/Silver Bond issue in 2026?
The government typically announces new retail bond plans in the annual Budget (February) or Policy Address (October). The 2025 Budget already announced plans for a new Silver Bond series and an infrastructure bond. Watch for announcements from the Financial Services and the Treasury Bureau.
Disclaimer
This article is for reference and educational purposes only and does not constitute any investment advice or solicitation. While government retail bonds carry very low risk, they remain subject to interest rate changes, inflation changes, and market liquidity factors. Investors should carefully read the relevant offering circular and make independent judgements based on personal financial circumstances and risk tolerance before making any investment decisions. Past performance is not indicative of future returns.
Want to compare bank time deposit rates with government bond returns?
Time Deposit Rate Comparison →