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BOC Group Introduces Tiered Interest Rate Structure
All the member banks of the Bank of China Group (BOC Group) in Hong Kong will introduce a tiered interest rate structure for their customers from September 3, 2001, announced Liu Jinbao, chief executive of the BOC Hong Kong-Macau Regional Office, at a press conference Thursday.
Under the new structure, interest rates on savings deposits will be structured into five tiers. It will give customers who have savings account balances of between 10,000 Hong Kong dollars (about 128 U.S. dollars) and 100,000 Hong Kong dollars (about 12, 800 U.S. dollars) the Standard Savings Interest rates (SSIR).
Those who have savings account balances of more than 100,000 Hong Kong dollars but less than 200,000 Hong Kong dollars (about 25,640 U.S. dollars), will enjoy an additional 0.25 percent above the SSIR.
Customers with account balances that exceed 200,000 Hong Kong dollars will receive a bonus interest rate of 0.375 percent above the SSIR.
Liu said the SSIR is a unified floating rate which is subject to market conditions and BOC will announce changes to this rate from time to time.
Liu also said BOC will not adopt a zero interest rate and will continue to pay interest to customers with low account balances.
Following the deregulation of deposit interest rates in Hong Kong on July 3 this year, many of the local banks have adopted a tiered interest rate structure and a range of flexible products and services.
Liu pointed out that savings ratio in Hong Kong is 30 percent in the year of 2000, among the highest in the world while the current interest rates are at the lowest level for 20 years.
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