HKD time deposit rates have dropped significantly in May 2025, triggered by the substantial decline in the Hong Kong Interbank Offered Rate (HIBOR). 3-month HKD time deposit rates have generally fallen from over 3% to just over 1%, with the magnitude and speed of this reduction being rare in recent years.
Core Reasons for HIBOR’s Rapid Decline
The main factor causing the rapid drop in time deposit rates is the large influx of hot money into Hong Kong. In recent months, global funds have begun flowing back into the Hong Kong dollar system, primarily benefiting from the recovery of Hong Kong’s IPO market. When large amounts of US dollars are exchanged for HKD, the supply of Hong Kong dollars increases, and banks no longer need to attract HKD funds with high interest rates.
Core Reasons for HIBOR’s Rapid Decline
The main factor causing the rapid drop in time deposit rates is the large influx of hot money into Hong Kong. In recent months, global funds have begun flowing back into the Hong Kong dollar system, primarily benefiting from the recovery of Hong Kong’s IPO market. When large amounts of US dollars are exchanged for HKD, the supply of Hong Kong dollars increases, and banks no longer need to attract HKD funds with high interest rates.
The Hong Kong Monetary Authority’s intervention in the foreign exchange market has further exacerbated the abundant liquidity of the Hong Kong dollar. Due to the linked exchange rate system pegging the HKD to the USD at a range of 7.75 to 7.85, when the HKD exchange rate touches the strong-side convertibility undertaking (7.75), the HKMA buys US dollars and sells Hong Kong dollars, injecting substantial HKD liquidity into the market. Recently, the banking system balance has risen to over HK$100 billion, a new high since the pandemic.
Current HKD Time Deposit Market Trends
The specific situation regarding the decline in time deposit rates varies across different terms. Short-term deposit rates have seen the most significant drops, with deposits of 6 months or less almost entirely falling below 1%. In comparison, longer-term deposit rates have decreased relatively less, with some longer terms still offering over 2%.
HKD Time Deposit Rates Comparison – June 2025
| Institution | Currency | 1 Month | 3 Months | 6 Months | 12 Months | Min |
| Syfe Investment Services | HKD | 0.40% | 1.1% | 2.0% | 沒有 | |
| Bank Fixed Deposits | ||||||
| HSBC | HKD | 0.30% | 0.80% | 10,000 | ||
| Bank of China | HKD | 0.40% | 0.70% | 10,000 | ||
| Standard Chartered Bank | HKD | 0.50% | 0.80% | 1.60% | 10,000 | |
| Hang Seng | HKD | 0.60% | 0.90% | 10,000 | ||
| ICBC Asia | HKD | 0.25% | 0.95% | 1.30% | 1.30% | 50,000 |
| Bank of East Asia | HKD | 0.80% | 1.25% | 1.65% | 10,000 | |
| Nanyang Commercial Bank | HKD | 0.375% | 0.50% | 1.30% | 1.50% | 100,000 |
| DBS Bank | HKD | 0.20% | 0.90% | 0.95% | 0.95% | 50,000 |
| Bank of Communications | HKD | 0.25% | 0.85% | 1.60% | 1.90% | 20,000 |
| China Construction Bank Asia | HKD | 0.38% | 1.05% | 1.05% | 1.05% | 10,000 |
Source of top 10 licensed banks (in terms of total assets) as of 2023: KPMG
As for Syfe’s time deposit investment service – Cash+ Fixed (HKD), it is denominated in HKD and invests in time deposits. The interest rates are fixed like traditional deposits, with no management fees. Syfe Cash+ Fixed (HKD) offers 1-month, 3-month, and 6-month options at fixed yields of 0.40%, 1.10%, and 2.00% respectively, higher than typical time deposits. Most importantly, Cash+ Fixed (HKD) has no minimum investment amount, making it suitable not only for smaller investors but also for anyone looking to allocate funds flexibly.
Unlike traditional banks, Cash+ Fixed (HKD) offers these unique advantages:
- Higher return potential: Fixed yields higher than most bank time deposits in the current market
- No investment threshold: No minimum investment amount, unlike banks requiring HK$10,000-100,000
- Flexible access: More flexible terms and withdrawal options compared to traditional time deposits
- User-friendly platform: Easily invest, monitor, and manage funds through the Syfe mobile application
- No hidden fees: Transparent fee structure with no management fees
Cash+ Fixed (HKD) is particularly suitable for investors looking to pursue stable returns while maintaining fund flexibility in the current low-interest environment. Whether as a short-term management tool for idle funds or as a stable income component in an investment portfolio, Cash+ Fixed (HKD) provides a quality alternative to traditional bank time deposits.
From a risk perspective, although Syfe is not a bank, as a financial institution with significant scale, Syfe is able to negotiate competitive time deposit rates with banks. This investment service is not covered by the Hong Kong Deposit Protection Scheme (DPS), but investors can invest with confidence as we only partner with financially sound banks. Through our partnerships, Cash+ Fixed HKD offers competitive yields without any conditions, has no investment amount limits, and charges no fees. [Click here to learn more about Cash+ Fixed HKD FAQs].
*Calculator note: If your Cash+ Fixed HKD matures on a business day, you will receive the fixed return at the prevailing yield. If not, your Cash+ Fixed HKD investment will end on the next business day, and you will receive proportional returns to the additional days.
Yields may change before investment begins. Cash+ Fixed HKD returns are fixed but subject to potential bank risks. All Cash+ Fixed HKD returns are only available upon maturity.
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]
