HSBC to Charge Small Depositors Service FeeHSBC, the largest bank in Hong Kong, announced Tuesday that it will introduce in July a 40 HK dollars (US$5.1) monthly service fee for savings accounts with balances below 5,000 HK dollars (US$641).However, senior citizens over the age of 65 and recipients of government disability allowance will be exempted from these fees. HSBC's General Manager Raymond Or said that the interest rate deregulation due to go effective on July 1 will increase competition and threaten to tighten margins further. To encourage the use of electronic services and self-service facilities, HSBC began offering customers free ATM cards and free automated phonebanking services to all its customers from Tuesday. The bank also confirmed that it has no plans to introduce charges for ATM transactions. From May 1, HSBC will introduce a four tier interest rate structure, where the bank will pay the maximum savings rate on balances above 10,000 HK dollars (US$1,282 ), but offer reduced rates for lower amounts and no interest on balances below 1,000 HK dollars (US$128 US). In addition, customers whose total relationship balance, which encompasses a customer's total business with the bank, including deposits, utilized lending facilities, the savings element of life insurance policies, securities, unit trusts and other investments, exceeds 150,000 HK dollars will also receive a bonus interest on their savings account balances. |
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