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Members of the Bank of China (BOC) Group will move to a common tiered interest rate policy broadly in line with the savings rates offered by rivals.

Announcing the uniform measures to be adopted by the 12 members of the group - which are being merged into a single entity - BOC chief executive Liu Jinbao said yesterday the standard savings interest rate (SSIR) was likely to be 1.75 per cent.

That was unless market conditions changed before the policy was implemented on September 3.

The group's prime lending rate is 6.75 per cent.

This mirrors the standard interest rate settings offered by BOC's major competitors HSBC and Hang Seng.

The SSIR would be paid on balances of between HK$10,000 and HK$99,999.

Although the group will not levy a charge on low balances, account-holders whose balances fall below HK$3,000 will earn a savings rate of just 0.25 per cent, while balances of between HK$3,000 and HK$9,999 will earn a rate set at SSIR minus 1 per cent.

Customers with balances of between HK$100,00 and HK$199,999 will get an additional 0.25 per cent rate added to the SSIR, while balances of HK$200,000 and upwards will have a bonus rate of 0.375 per cent added to the SSIR.

'If existing market interest rates remain unchanged on the effective date of September 3, our SSIR will be 1.75 per cent,' Mr Liu said. 'If, however, market interest rates are higher or lower at that time, our interest rates will be adjusted accordingly.'

Member banks will also move to a common minimum brokerage charge on securities trading of HK$100, down from the present rate of HK$125, and a minimum online banking brokerage of HK$80, down from HK$100.

'The adjustments are designed to truly reflect current and future customer needs, the demand and supply of bank funds under changing market conditions, and our strategy for target marketing and service costs,' Mr Liu said.



BOC savings rates to match rivals