Financial Literacy for Everyone
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Saving Options

Not all savings accounts are the same. Different banks offer different interest rates. And individual banks typically offer a number of savings account options for you to choose from. Before opening a savings account it is a good idea to figure out how you will be using it. Ask yourself:

  • How long you will be keeping your money in the account
  • How often you will want to withdraw money
  • How much money you will keep in the account

All of these factors can have an impact on how much interest you can earn. A simple rule to keep in mind is that time is money. The longer you are willing to leave your money alone in an account the higher interest you are likely to earn.

Types of savings accounts
Hong Kong is a leading international financial center, giving residents the option to bank not only in Hong Kong dollar, but also many foreign currencies. Most banks in Hong Kong offer the following types of savings accounts:

  • Hong Kong dollar savings accounts are the most flexible, placing few restrictions on access to your money. Some accounts may require a minimum balance.
  • Foreign currency savings accounts appeal to customers who need to transact in another currency, or want to take advantage of foreign exchange gains versus the Hong Kong dollar.
  • Renminbi savings accounts allow customers to bank in Renminbi, and are increasingly popular as Hong Kong attracts increasing numbers of Chinese tourists.
  • Hong Kong dollar time deposit accounts typically pay higher interest rates than Hong Kong dollar savings accounts – in return banks require money to be deposited for a set period of time. Savers in Hong Kong can also open time deposit accounts in foreign currencies.

Deposit protection
To protect savers against loss when financial institutions fail, the Hong Kong Deposit Protection Board offers guarantees for account holders, subject to a maximum of HK$500,000 per depositor. The protection applies to deposits denominated in the Hong Kong dollar and foreign currencies held at financial institutions that are members of the Deposit Protection Scheme. Savers should note that certain types of accounts are excluded from protection. For more information about the scheme, please click here.

Source: Hong Kong Deposit Protection Board