September 1, 2025 Updated | Federal Reserve Chair Jerome Powell signaled that a rate cut might be on the horizon, possibly at the September 16-17 FOMC meeting. He expressed concerns about a slowing job market, stating, “Things are changing, and we might need to tweak our approach.” While Powell didn’t confirm a cut, experts now widely expect a 0.25% reduction in September, which could lead to lower USD time deposit returns soon. This follows the Fed’s decision to keep interest rates steady at 4.25%–4.50% in their July 2025 meeting.
This article breaks down the latest USD time deposit rates from Hong Kong’s top traditional and virtual banks. We’ll also explore options like Syfe’s investment platform to help you make smart choices with your money.
In Hong Kong, local interest rates (known as HIBOR) have recently risen quite significantly. Despite this, USD time deposits remain more attractive than HKD deposits, making them a popular choice for savers looking to secure higher interest rates. The Fed’s June 2025 Dot Plot projects two rate cuts this year, totaling 0.50%, which would lower the federal funds rate to 3.75%–4.00%. However, some analysts predict 2–3 cuts, adding up to 0.50%–0.75%, driven by a cooling job market and stable inflation.
Once rate cuts begin, banks are likely to lower deposit rates quickly. To lock in today’s high rates, keep an eye on the Fed’s next meeting on September 17–18.
Summary｜Best USD Time Deposit Rates in Hong Kong (September 2025)
- Best 1-month USD time deposit rate: ICBC Asia offers 3.80% p.a. (USD 1,000,000 minimum), followed by Nanyang Commercial Bank at 3.75% p.a. (USD 130,000 minimum) and 3.65% p.a. (USD 13,000 minimum), and China Construction Bank (Asia) at 3.65% p.a. (USD 10,000 minimum).
- Best 3-month USD time deposit rate: Fubon Bank and Public Bank (Hong Kong) lead with 3.90% p.a. (USD 65,000 and no minimum, respectively), followed by Nanyang Commercial Bank at 3.85% p.a. (USD 130,000 minimum), and Hang Seng Bank and DBS Bank at 3.80% p.a. (USD 2,000 and USD 6,000 minimum, respectively).
- Best 6-month USD time deposit rate: Nanyang Commercial Bank tops the list with 3.90% p.a. (USD 130,000 minimum), followed by HSBC Premier, Hang Seng Bank, Bank of Communications, and ICBC Asia (USD 100,000 minimum) at 3.70% p.a.
- Best 12-month USD time deposit rate: ICBC Asia offers 3.45% p.a. (USD 1,000,000 minimum), followed by China Construction Bank (Asia), Bank of Communications, and HSBC Premier Elite/Premier at 3.30% p.a. (USD 10,000, USD 3,000, and USD 2,000 minimum, respectively).
- Top Alternative: Syfe Fixed USD offers a fixed annualised return of 4.15% p.a. with no minimum investment.
Data last updated as of 1 September 2025
Why Choose USD Time Deposits in Hong Kong?
Choosing USD time deposits in Hong Kong is a strategic decision for several reasons:
- Higher Interest Rates:
USD deposits often provide more attractive interest returns compared to HKD deposits. - Lower Exchange Rate Risk:
Given the Hong Kong Dollar’s peg to the US Dollar (HKD 7.75-7.85 to USD 1), USD time deposits carry significantly lower exchange rate risk than other foreign currency deposits, although minor fluctuations are still possible. - Investment Diversification:
Holding a portion of your assets in USD can help diversify your investment portfolio and potentially hedge against currency risk, especially if your existing portfolio is heavily HKD-based. - Global Acceptability:
As a major international currency, the US Dollar boasts high liquidity and is widely accepted, making it convenient for global transactions.
USD Time Deposit Interest Rates Offered by Top 10 Traditional Banks(HSBC/BOC/SC/Heng Seng/DBS/BEA)
USD Time Deposit Interest Rates Offered by Mid-sized banks and Virtual Banks
Optimising USD Time Deposit Returns
Banks actively encourage the use of their digital platforms, and this is often reflected in more preferential rates for deposits made through mobile applications or internet banking.
For example, at Nanyang Commercial Bank (NCB), a 3-month USD fixed deposit with a USD 13,000 minimum yields 3.80% p.a. online, compared to 3.60% p.a. at a branch.
It’s important to note that most of these attractive preferential rates, especially for online channels, typically apply to new funds or funds converted from other currencies (i.e., currency conversion).
Hong Kong’s virtual banks offer compelling USD fixed deposit rates, often with lower minimum deposit requirements, making them accessible options for a wider range of investors. However, it’s worth noting that some virtual banks, like Mox Bank, may also require new funds to qualify for their more attractive preferential rates.
Syfe Fixed (USD): Unlock Better Returns Beyond Traditional Fixed Deposits.
Syfe Cash+ Fixed (USD) offers fixed annualised returns of 4.10% (1 month), 4.15% (3 months), and 4.05% (6 months) p.a. (as of 1 Sep 2025), with no minimum investment, unlike typical bank requirements (USD 1,000–65,000). This service provides flexibility, no management fees, and competitive yields through partnerships with financially sound banks, though it is not covered by the Hong Kong Deposit Protection Scheme (DPS).
Understanding USD Fixed Deposits
A USD fixed deposit, also known as a USD time deposit or Certificate of Deposit (CD), is a low-risk financial product. Investors deposit US dollars for a fixed period to earn guaranteed interest. Term length significantly impacts interest earned, with longer terms typically offering higher annual percentage rates (APRs).
HKD vs. USD Fixed Deposits in Hong Kong: The Optimal Choice
When considering fixed deposits in Hong Kong, the choice between HKD and USD fixed deposits is crucial. While both offer stability, USD time deposits often present advantages:
- Currency Stability with Yield Potential. HKD is pegged to USD (7.75-7.85), minimizing direct FX risk. However, USD fixed deposits in Hong Kong align directly with USD liabilities or future USD needs, often providing a higher interest rate premium than HKD deposits. Compare potential earnings against any minimal currency exchange risk.
- FX Conversion Fees: Be Aware of Spreads. Converting HKD to USD incurs fees via exchange rate spreads. Traditional banks may offer less favorable rates than online platforms. Factor in these FX conversion fees to ensure the earned interest justifies the conversion cost.
Tips for Securing the Best USD Time Deposit Rates in Hong Kong
To maximise your USD time deposit rates in Hong Kong, follow these strategies:
- Thorough Rate Comparison: Compare rates from traditional banks, virtual banks, and fintech platforms. Small differences matter—for example, USD 10,000 at 3.90% vs. 3.50% for 3 months yields ~USD 10 more, accumulating to ~USD 40 over a year.
- Strategic Term Selection: Longer terms typically offer higher rates, but balance this with your liquidity needs. Choose a term that comfortably aligns with when you can lock in your funds.
- New Funds & Online Channels Yield More: Most attractive USD fixed deposit rates require new funds or currency conversion. Banks incentivise digital engagement; utilise mobile apps or internet banking for preferential rates.
- Understand the Fine Print: Meticulously review all terms, including renewal policies, interest calculation, and especially early withdrawal penalties. Unforeseen early access could mean forfeiting accrued interest or incurring fees.
More Hong Kong USD Fixed Deposit Rates Guide：港元定存比較｜美元定存比較｜人民幣定存比較｜高息存款戶口｜單利息與複利息的計算公式有什麼分別？
Disclaimer: This article is for informational purposes only and should not be viewed as financial advice. It is not meant to market any specific investment, or offer or recommend the purchase or sale of any specific security. All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone. Past returns are not a guarantee for future performance. Investors should consider his/her own circumstances.
The information or advertisement contained herein does not constitute an offer, any solicitation, invitation or recommendation to engage in any investment activities. The content of this article has not been reviewed by the Securities and Futures Commission of Hong Kong.Cash+ Fixed HKD is an investment management service, and should not be taken as a collective investment scheme or a deposit or savings account.
The optimised rates are not due to pooling of invested funds by Syfe, and Syfe is not offering Cash+ Fixed HKD as a fund, scheme, or portfolio with a pooling element. Until the investment starts, the return rate is subject to change. Cash+ Fixed HKD returns are fixed, subject to underlying bank risk. All Cash+ Fixed hkd returns are only available after maturity. [Learn more]
