image image

Hong Kong economy

Hong Kong people need HK$725,000 in their savings accounts to feel financially secure, Hong Kong Deposit Protection Board survey finds

  • Survey carried out by HKU Public Opinion Programme canvassed 1,015 people, in addition to 221 full-time housewives
  • Seventy per cent of Hongkongers are regular savers, putting aside an average of HK$7,000 per month
PUBLISHED : Wednesday, 24 October, 2018, 7:10pm
UPDATED : Thursday, 25 October, 2018, 8:13am

Hong Kong people need HK$725,000 (US$92,483) of savings in their bank account to feel financially secure, while full-time housewives require HK$500,000, according to results of a survey by the Hong Kong Deposit Protection Board published on Wednesday.

The board commissioned the Public Opinion Programme at the University of Hong Kong to conduct the survey, which asked 1,015 individuals, in addition to 221 full-time housewives, in August about their saving habits and sense of security about their savings.

The study showed that 70 per cent of respondents have a habit of saving HK$7,000 a month on average. Around half of the housewives said they saved money every month, an average of HK$4,000.

Hong Kong’s MPF ranks near bottom of the class globally when it comes to adequate savings preparation, consultancy says

Over a quarter (26 per cent) of those who had saving habits saved more than HK$10,000 per month, while half of them, and 60 per cent of housewives, did not set a yearly savings target.

The survey showed that those aged 30-49 topped the list, saving HK$8,537 per month, while those aged 18-29 put aside around HK$5,768 of their monthly income.

It is important that Hongkongers are aware of means to enhance protection of their hard-earned savings
Michael Hui King-man, Hong Kong Deposit Protection Board chairman

Bank deposits remained the most common form of savings, used by 73 per cent of respondents; 63 per cent put their money in investments, according to the survey.

Professor Michael Hui King-man, chairman of the Hong Kong Deposit Protection Board, said the total bank deposits among the scheme members in Hong Kong jumped by 8 per cent to HK$2.2 trillion last year.

“With the interest rate hike cycle poised to accelerate, it is anticipated that savings will be in a growth trajectory,” Hui said.

“In light of the growing amount of savings and the saving habits of Hongkongers as noted in the survey

report, it is important that Hongkongers are aware of means to enhance protection of their hard-earned savings, though Hong Kong has a robust financial infrastructure in place.”

The Hong Kong Deposit Protection Board is an independent statutory body formed under the Deposit Protection Scheme Ordinance to oversee the operation of the Deposit Protection Scheme which was launched in 2006.

How to change careers successfully and find your dream job

The scheme protects deposits placed with 149 member institutions and the protection is statutory.

According to the board, all deposits denominated in Hong Kong dollars, renminbi or any other currency deposits held with the Hong Kong offices of scheme members are protected. In the event of a scheme member failing, the scheme would compensate the victims with the maximum protection being HK$500,000 per depositor per financial institution, including both principal and interest.