Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

HSBC, Standard Chartered, and online lenders Airstar, WeLab race to offer high interest rates, cash prizes to capture new customers claiming their HK$10,000 government payout

HSBC, Standard Chartered, and online lenders Airstar, WeLab race to offer high interest rates, cash prizes to capture new customers claiming their HK$10,000 government payout

HSBC, the city’s biggest lender, is offering a 10 per cent saving rate for new customers who open an account to receive their handout. Many lenders offer cash draw from HK$20 to HK$100,000 to compete for 7 million people to register the government payout with them

Hong Kong’s banks, from new digital lenders to traditional powerhouses of the sector, are in a price war to lure 7 million Hong Kong permanent residents into using their platform to get their HK$10,000 (US$1,290) government cash handout.

Newly-launched virtual lenders like Airstar and the three note-issuing banks, HSBC, Standard Chartered, and Bank of China Hong Kong, have entered the fray, offering high interest rates, lucky draw prizes and other incentives.

The HK$71 billion of payouts announced by Financial Secretary Paul Chan Mo-po in February’s budget is aimed at helping people cope with the economic slump caused by the Covid-19 pandemic and a year of anti-government protests. Bankers, however, are taking it as an opportunity to compete for new customers.



People can register through one of 21 banks from June 21 until the end of this year to get their hands on the HK$10,000, with the money due to be paid into their registered bank account from July 8.

HSBC, the largest lender in the city, is offering a 10 per cent interest rate on up to HK$50,000 of savings for two months for new customers who open an account via its mobile phone app, until the end of July. It will also offer a lucky draw for customers who register for the government payout via its platform, but details will only be given next week, according to a spokesman for HSBC.

BOCHK is offering a 4.3 per cent interest rate for three-month time deposits of up to HK$100,000 for new customers who use mobile banking to open a new account.

Normal saving deposit rates in Hong Kong are close to zero, while time deposits are only between 1 and 2 per cent.

Lucky draws for cash prizes have emerged as a theme for the banks competing for customers to sign up for the government payout. Standard Chartered is offering an extra HK$10,000 cash for each of 24 winners, Hang Seng Bank is offering 9,000 people the chance to win HK$20 each, while five will get HK$10,000. Bank of East Asia is offering 31 customers prizes between HK$1,000 and HK$10,000.

Citibank is enticing customers with HK$68 cash for anyone registering with it for the government payout. It will also give HK$100,000 to one customer in a lucky draw, the highest among all banks.

Brand new players have also joined the game. Airstar, a joint venture virtual bank led by mobile phone maker Xiaomi, started full operations on Thursday. It is offering a 3.6 per cent savings rate on up to HK$20,000 for new customers.

WeLab Group, an online lender, last month offered a HK$10,000 loan to borrowers, free of charge provided they agreed to repay it once they receive the government payout. Co-founder and chief executive Simon Loong said about 70 per cent of its 4,000 applicants are new customers.

“This is a good opportunity for Hongkongers to try the new online banking services,” Loong said.

New players coming to the market with compelling saving rates will follow this with attractive loan offers, James Lloyd, a partner at advisory firm EY, predicts.

“As incumbent players respond in kind, we expect to see some capital transfers and net interest margin compression. Ultimately, the challenge for both new and existing players will be how to generate account loyalty without engaging in a never-ending price war,” Lloyd said.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
×