Hang Seng increases account fee sixfold as sector adjusts charges

Fees on some Hang Seng Bank accounts will increase sixfold as more banks, including Citibank and Bank of East Asia, announced increased fees for small customers yesterday, a day after the city's biggest bank, HSBC, said it would raise charges for certain services.

The consumer watchdog and grass-roots concern groups warned that although these charges were business decisions, banks should care for less-privileged customers.

From April, the city's second-largest bank, Hang Seng, will charge customers of its Integrated Account Services with balances less that $10,000 a fee of $60 per month. up from the present $10 to $20.

The bank said 8 per cent of the service's customers would be required to pay more, half would continue to be exempted and 30 per cent would pay less as their basic and regular account plans would be merged in the scheme.

Raymond Or Ching-fai, chief executive of the bank, blamed increased operating costs for the rise. He said the increase only brought its fees in line with other banks.

Citibank announced customers would be charged $30, instead of the present $20, if they settled their credit card payments in cash.