Hong Kong Silver Bonds offer 4.25% minimum interest rate

A new batch of Hong Kong Silver Bonds is set for subscription from August 21 to September 4, offering a guaranteed minimum interest rate of 4.25%. While this rate outperforms most standard fixed deposits, experts note that high demand often limits the actual amount allocated to individual applicants, frequently capping at approximately HKD 200,000 to 250,000 despite higher application limits.

Financial planners suggest diversifying retirement funds between high-stability options like Silver Bonds, annuities, and savings insurance, and higher-risk dividend-yielding stocks. Recommended sectors for dividend income include telecommunications, state-owned banks, and utility companies. However, investors are cautioned against the volatility of airline stocks and the potential for capital loss in US Treasuries if interest rates rise further.

In the commercial banking sector, several institutions are offering competitive fixed deposit rates. OCBC Bank offers up to 3.4% for select wealth management clients, while DBS Bank provides various rates for both Hong Kong Dollar and US Dollar deposits. Other institutions, including Ping An Bank, EleBank, and Fubon Bank, are also offering promotional rates for new funds or specific tenures.