Small depositors are once again losing out to those with larger deposits, as several leading lenders shift more aggressively towards a tiered deposit structure that rewards the 'haves' and penalises the 'have-nots'.
Most leading banks yesterday adjusted their time deposit rates. HSBC and Hang Seng Bank lifted rates for most levels of deposits below $1 million by 0.25 percentage point, raising rates on a $100,000 three-month deposit to 1.8 per cent, for example. For deposits of $1 million or above, rates rose 0.3 percentage point and now range from 2 per cent for three-month tenors to 2.45 per cent for 12 months.
Raymond Or Ching-fai, a vice-chairman and chief executive of Hang Seng Bank, said he expected the trend towards tiered pricing to continue, since banks had to manage their costs.
He also expected increased bank charges to become a trend. If revenue was insufficient to cover costs, inevitably banks had to impose charges, he said.