Local banks are scrambling to lure fresh deposits, offering a host of promotions from cash rebates to free airline mileage. The lenders are doling out welcome gifts, credit card discounts, offers of deposits, loans and investments, requiring various commitments. Sing Tao Daily, a sister publication of The Standard, has compared the incentive programs of six banks. For new clients depositing HK$8 million in one go, Standard Chartered offers a cash reward of HK$5,000. The British-based lender offers HK$1,000 if HK$1 million to HK$5 million is injected. Citibank's Citigold credit card holders are offered HK$1,500 credit and a cash rebate of HK$500 if they turn their current account into their payroll account, that is making it the destination of their monthly salary.
Clients who invest more than HK$3 million in wealth management products through Citi are given HK$10,000 credit on their Citigold cards. Those who open an account with Hang Seng Bank in October with more than HK$5 million will get a cash rebate of HK$3,000. China Construction Bank is offering a supermarket cash coupon of HK$800 as a welcome gift to first-time depositors. It should be noted that the offers from Citibank, Hang Seng Bank and CCB will not be given, if depositors fail to apply for credit cards from the same institutions. Banks are keen to see depositors spend more. Those signing up for StanChart's Priority Banking credit card get a cash reward of HK$600 if they spend HK$4,000 in the first two months. Clients will be given coupons or miles on their "Asia Miles" frequent flyer program for subsequent expenditure. Citibank also offers a cash reward or air miles according to clients' spending habits. Customers using HSBC Premier credit cards can earn cash rewards to get gifts. Hang Seng Bank offers as much as HK$1,600 in cash. Banks also offer deposit and loan rewards. Citibank now offers the highest time-deposit interest rate among local banks. For example, new clients having a stock account, securities account and foreign currency account with a deposit of more than HK$500,000 will enjoy an annual time-deposit interest rate of 1.1 percent for three months, while other banks only offer 0.8 percent. For time deposits in the yuan, StanChart and Hang Seng Bank have the best offers, Sing Tao has found. StanChart offers 3 percent interest rates for three, six and 12-month yuan deposits. Hang Seng Bank's three and six- month yuan time deposits yield 2.28 percent and 2.38 percent respectively, while new clients can get up to 6.38 percent per annum for one-week deposit. As for service charges, Customers may have their stock trading commissions and fund charges waived if they make investment through these six banks. Hang Seng Bank and CCB waives up to 2 percentage points on initial fund management charges. StanChart and Hang Seng Bank give clients free real-time quotes on 1,000 stocks per month. Many of the banks have no handling charge for global withdrawal through ATMs. All banks, however, require minimum deposits to be maintained at all times. For their privileged accounts, StanChart, Citibank, Hang Seng Bank and Bank of China have a minimum deposit requirement of HK$500,000 and Citibank hikes this to HK$1 million from the second year. CCB has a HK$1 million requirement. Banks also charge a few hundred dollars as handling or administration fees if the clients terminate their accounts or credit cards in the short term. "Total relationship balance" usually means the total value of deposits, investments, credit card balance and loans with a single institution.
