A guide to time deposit rates in Hong Kong: how they compare to Silver Bonds and cash funds

Hong Kong's deposit rates do not move on their own. Under the Linked Exchange Rate System, the Hong Kong dollar trades within a narrow band against the US dollar, so the peg transmits US monetary conditions into local rates rather than setting returns independently. HKD rates tend to move in sync with the US Federal Reserve’s policy decisions — though shifts in Hong Kong's interbank liquidity can pull them either side of that path.

A time deposit locks in a fixed rate and protects your principal, but for many savers a Silver Bond or a money-market fund may fit the need better. This article sets out the latest time deposit rates, explains why they track US rates, and weighs them against the alternatives.

What are the best time deposit rates in Hong Kong right now?

A time deposit pays a set rate to savers leaving a lump sum with a bank for a fixed term. The table below shows selected promotional rates as disclosed on each bank's own website in mid-June to early July 2026. Rates and conditions change frequently, so confirm current terms before placing funds.

Why do Hong Kong deposit rates move with US rates?

Because the Hong Kong dollar is pegged to the US dollar, Hong Kong cannot set interest rates independently of the United States for long. But while the peg fixes the exchange rate and the direction of local rates, it does not set the local interest rate levels: Hong Kong dollar rates are set by local interbank liquidity, and when that liquidity is ample, HIBOR sits below comparable US rates. So a bank can offer more on US dollars — which are priced off higher US short-term rates — than on Hong Kong dollars, even though the two currencies trade in a fixed band.

A word of caution on currency. The highest cash yields on offer are typically in US dollars, reflecting higher US short-term rates. For an investor whose goals are in Hong Kong dollars, this matters less than it would elsewhere: under the Linked Exchange Rate System, the HKD trades in a narrow band of 7.75 to 7.85 against the US dollar, so moving into US dollars to capture that yield carries only limited exchange-rate risk over most holding periods. Two caveats remain. Converting in and out carries a spread, which eats into any yield pickup on shorter horizons. And the peg itself is a policy choice, not a law of nature — a change to the regime, however unlikely, could reprice the HKD against the US dollar.

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Time deposit vs Silver Bond vs money-market fund

For Hong Kong residents aged 60 and above, the government's Silver Bond can be an attractive opportunity. It is a three-year bond issued by the Hong Kong government, sold in units of HK$10,000, and it returns principal in full at maturity. The batch launched in August 2025 pays interest semi-annually at the higher of an inflation-linked rate or a fixed floor of 3.85% per year — so the floor protects you if inflation stays low, while the inflation link works in your favour if prices climb. That structure is the bond's main draw: a defined minimum return with upside if the cost of living rises.

The trade-offs are access and availability. Eligibility is limited to holders of a valid Hong Kong Identity Card born on or before December 31, 1966, so it is not open to the general adult population, unlike Singapore's Savings Bond. Issuance is periodic rather than continuous — the government launches a batch when it chooses, typically once a year, so you cannot buy in at will. The three-year tenor also means the money is committed, though the bond can usually be redeemed early or sold back to the government under the terms of the issue. And Hong Kong has no retail-accessible Treasury-bill equivalent, so for a senior investor the Silver Bond often stands in as the closest thing to a low-risk government instrument.

For cash that needs to stay accessible, money-market funds invest in short-dated, high-quality instruments and allow withdrawals at short notice. HKD yields follow short-term interbank rates, which have been volatile — with one-month HIBOR around 2.75% in July 2026 - while money market funds returns can vary. Unlike a time deposit, these funds are not capital-guaranteed and are not covered by the Deposit Protection Scheme — the yield floats and the value can move.

When does a time deposit make sense?

The time deposit earns its place when you have HKD cash you will not need for a defined period, you want a locked, capital-guaranteed figure, and the placement sits within the HK$800,000 Deposit Protection Scheme limit. While investors can shop for new-money promotions, the standard renewal rate is typically much lower than the promotional one.

Investment implications

The choice between any single one of these short-term products should be driven by horizon and currency, not simply by the headline rate. HKD cash on a three-to-twelve-month view can reasonably sit in a new-fund time deposit, protected by the Deposit Protection Scheme. Cash that must stay liquid may work harder in a money-market fund, provided you accept it is not capital-guaranteed. USD-denominated goals may favour a USD deposit or USD cash fund, capturing higher US rates without adding currency risk. Seniors may find the Silver Bond's inflation-linked floor attractive when a batch is open. The trigger to watch is the Federal Reserve: if US rates hold or rise, HKD and USD deposit rates may stay firm; if cuts return, locking a longer tenure sooner may pay off.

This is where Endowus CashUp fits. Rather than picking a single fund, CashUp gives Hong Kong investors two ready-made cash portfolios built by the Endowus Investment Office from money-market and ultra-short-duration bond funds. CashUp Simple, the lower-risk option, draws on funds from HSBC Asset Management and Ping An and targeted a net yield of 4.2% to 4.4% per year in US dollars as at 31 May 2026; CashUp Plus, which takes marginally more duration and credit risk, added different funds and targeted 4.4% to 4.6%. Both are also available in Hong Kong dollars, at lower yields that reflect the lower HKD rate. Because Endowus rebates all trailer commissions and charges a flat 0.1% platform fee, you access institutional share classes that most retail savers cannot reach directly. There are no lock-ups, no subscription or withdrawal fees, and a minimum of US$100 or HK$800, with interest accruing daily.

CashUp is an investment product, not a deposit. Returns may move, the portfolios are not capital-guaranteed, and they are not covered by Hong Kong's Deposit Protection Scheme. Past performance is not an indicator nor a guarantee of future performance or returns. Projected performance or returns is not guaranteed to materialise.

Frequently asked questions

Why are USD time deposits in Hong Kong paying more than HKD ones?

Because US short-term interest rates are currently higher than Hong Kong's interbank rates. The Hong Kong dollar peg links the two currencies, but local liquidity can keep HKD rates below US levels for periods. A USD deposit carries currency risk if your goals are in Hong Kong dollars.

Is my time deposit protected if the bank fails?

Deposits with a Scheme member bank are protected by the Deposit Protection Scheme up to HK$800,000 per depositor per bank, a limit raised from HK$500,000 in October 2024. The Scheme covers both Hong Kong dollar and foreign-currency deposits, including time deposits with a maturity of up to five years.

Are the "up to 15%" or "20%" time deposit offers real?

The headline figure is usually an annualised rate applied to a very short tenure, a currency-conversion promotion, or an account-opening reward on a capped balance. The actual return you receive is far smaller once the short holding period and any currency conversion are accounted for. Read the effective, blended rate.

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Disclaimer

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