HSBC HK Deposit Plus

[PremierCat]

I've just opened an HSBC HK Premium account from Canada, and will be transferring the equivalent of at least HKD1,500,000. My goal is to earn high interest (e.g. 4-5% p.a.) without too much risk within 3-6 months maximum time deposit. I'm also looking at Foreign Exchange & Time Deposit and specifically Deposit Plus. I've never heard about these two. Can you share your experience with them? What would be the best bet overall? My "home" currency is CAD. Thanks.

[Peaky]

You can happily earn 4-5% with a regular time deposit. Deposit plus is a product bundled with an FX option… I have never really understood the appeal of it to anyone, and bundled financial services products are generally never a good idea.

[PremierCat]

You can happily earn 4-5% with a regular time deposit. Deposit plus is a product bundled with an FX option… I have never really understood the appeal of it to anyone, and bundled financial services products are generally never a good idea.

Earning 4+% seems to be applicable to new funds only - otherwise the interest is quite low. Is it possible to renew it with the same rate on maturity?

Also, based on the "Eligible New Fund Amount" definition (the net increase between your total account balance 7 days ago and your total account balance today), does this mean that any new funds are considered "new" only for 7 days following the deposit?

Another high interest possibility is Foreign Exchange & Time Deposit Offer (up to 12.80% p.a.) But is it worth it considering the currency exchange losses?

[Peaky]

Move it overseas (or to another HK bank) for 7 days and then back again and it's new again... HSBC will have left Canada by the time you come to renew, but you could get an account with HSBC Expat (jersey).

Those FX and TD rates are another bundled offering. You get the high rate for one week after doing the FX transaction. All the banks do them, and all it really does is make comparing FX rates harder.

[29Tjmy92]

I have a question. If I am in UK how can I open HSBC (Expat)Jersey AC as I have funds in HK?

[HK_Katherine]

I have a Premier account. This thread made me think I should do a Time Deposit .. ha ha ha... I took a look and the interest rates on the Time Deposits are all LOWER than what I am already getting in my savings account. HK is crazy.

[HK_Katherine]

I have a question. If I am in UK how can I open HSBC (Expat)Jersey AC as I have funds in HK?

Any HSBC branch should be able to help you. Or just ring them up.

[qhank]

I have a Premier account. This thread made me think I should do a Time Deposit .. ha ha ha... I took a look and the interest rates on the Time Deposits are all LOWER than what I am already getting in my savings account. HK is crazy.

HSBC HK is flush with cash so it's hiding the high interest offers:

https://www.hsbc.com.hk/accounts/offers/deposits/

[Peaky]

Any HSBC branch should be able to help you. Or just ring them up.

You can open an account online pretty easily. GBP50k balance (or Premier status elsewhere) to minimise fees and maximise what you can get. It is also a much lower relationship balance requirement than HK for Premier if you don't have quite enough money for the special queue and the coffee

[bdw]

Deposit plus can be interesting but only if you actually want the other currency you are linking it to. For example, if you are already sending USD, GBP, AUD, etc back home every month, or if you are planning a trip to Japan and need JPY in the next few months, etc. Also, you cannot be in a hurry to get the other currency, because its like a game, at the end of the deposit period you dont know if you will end up with HKD or the other currency you have linked it to.

For example, you can invest HK$10k for one week (or one month, etc), linked to USD, and get a guaranteed 10% interest rate. But what is not guaranteed is that you dont know if you will end up with HKD or USD at the end of the week, depending if the fx rate has gone up or down from what it was at the start of the week.

As I said, if you end up with USD and anyway you need USD for something and were already planning to do some USD conversions, then it can be good because you get your 10% interest. But if you end up with USD and you have no need for USD and then need to convert it back to HKD you are screwed.