Bank of China New Funds Definition and Fixed Deposit Offers Overview

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The Bank of China new funds definition is calculated by subtracting the previous month’s end balance in the same currency from the current total deposit value, and further deducting the principal of fixed deposits that have already benefited from new funds offers in the current month. For example, if a client had USD10,000 in HKD deposits on June 30, 2024, added USD5,000 in July, and used USD2,000 for a fixed deposit offer in July, the eligible new funds would be USD3,000. Only eligible new funds can enjoy the preferential rates of fixed deposit promotions.

Key Points

• The Bank of China new funds definition is the current total deposit value minus the previous month’s end balance in the same currency, further deducting the principal already used for promotional fixed deposits in the current month; only eligible new funds qualify for fixed deposit promotions.
• Fixed deposit promotions require a minimum deposit of USD1,280 (approximately HKD10,000), applicable only to sole accounts and deposits in the same currency, with rates ranging from approximately 2.80% to 2.90%.
• Applying for fixed deposit promotions must be completed within the designated promotional period, with identity proof and sole account details prepared, submitted via online banking, mobile app, or in-branch.
• Avoiding common errors such as overlooking sole account requirements, miscalculating new funds, applying outside the promotional period, or ignoring terms and conditions can increase application success rates.
• Clients should refer to various banks’ rates and terms based on their fund size and financial goals to select the most suitable fixed deposit product, ensuring optimal returns.

Bank of China New Funds Definition

Definition Focus

The Bank of China new funds definition refers to the standard used by the bank to determine whether funds qualify as “new funds” when applying for fixed deposit promotions. According to official statements, the bank calculates this by taking the client’s current total deposit value, subtracting the previous month’s end balance in the same currency, and further deducting the principal of fixed deposits that have already benefited from new funds offers in the current month. This definition applies only to sole accounts and must be calculated in the same currency. This ensures that exchange rate fluctuations do not affect the calculation of new funds. The Bank of China new funds definition helps ensure that promotions are targeted only at genuinely new funds, not existing deposits in the account.

Note: In case of any disputes, Bank of China (Hong Kong) reserves the final decision. Clients should carefully review the relevant terms and conditions before applying.

Calculation Method

The bank calculates the new funds amount based on the following steps:

1. Record the client’s total deposit balance at the end of the previous month (calculated in the same currency).
2. Calculate the client’s current total deposit value.
3. Subtract the previous month’s end balance from the current total deposit value.
4. Further deduct the principal used for new funds fixed deposit promotions in the current month.

For example:
Suppose a client held USD10,000 on June 30, 2024, deposited USD5,000 in July, and used USD2,000 for a fixed deposit promotion in July. The bank would calculate as follows:

• Current total deposit value: USD15,000
• Previous month’s end balance: USD10,000
• Difference: USD15,000 - USD10,000 = USD5,000
• Deduct principal already used for promotions: USD5,000 - USD2,000 = USD3,000

Thus, the client’s eligible new funds amount to USD3,000. Only this portion qualifies for the fixed deposit promotions under the Bank of China new funds definition.

New Funds vs. Old Funds

New funds refer to funds newly deposited into the bank during the specified period. These funds must be transferred from external sources or deposited in cash during the calculation period. Old funds refer to deposits already held in the client’s bank account at the end of the previous month. The bank strictly distinguishes between new and old funds based on the Bank of China new funds definition to ensure that only genuinely new funds qualify for promotions.

The purpose of this practice is to encourage clients to bring in new funds rather than repeatedly using existing account funds for promotions. This approach helps increase the bank’s fund inflows and ensures the fairness of promotional activities. Clients should clearly understand the Bank of China new funds definition before applying to avoid missing out on promotions due to misunderstandings.

Fixed Deposit Promotions

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Latest Rates

Bank of China (Hong Kong) offers competitive fixed deposit rates for eligible new funds in the 2024/2025 period. For a 3-month fixed deposit, the annual interest rate ranges from 2.80% to 2.90%, with the actual rate varying based on the client’s chosen application channel and account type. The bank adjusts rates daily based on market conditions, and clients can check the latest information on the Bank of China (Hong Kong) official website or visit a branch.

Note: All rates are subject to the bank’s daily announcements, and actual annual rates may vary due to market fluctuations.

Deposit Amount and Currency

Bank of China new funds fixed deposit promotions have clear minimum deposit requirements and applicable currencies.

• The minimum deposit amount is USD1,280 (approximately HKD10,000, calculated at an exchange rate of 1:7.8, for reference only).
• The promotion applies only to HKD deposits; other currencies are not included.
• Eligible new funds must be deposited into a sole account, with the total calculated across savings, checking, and fixed deposit accounts.

Eligible New Funds Balance Calculation Formula:
Eligible New Funds Balance = Current Total Deposit Value - Previous Month’s End Balance in the Same Currency - Cumulative Principal of Fixed Deposits Used for New Funds Promotions in the Current Month

Promotional Period and Rewards

Bank of China (Hong Kong) fixed deposit promotions have designated promotional periods, typically updated quarterly or semi-annually. For details on the 2024/2025 promotional period, clients should refer to the Bank of China (Hong Kong) official announcements.
To attract new funds, the bank may offer additional rewards during some promotional periods, such as cash rebates, gifts, or lucky draw opportunities. These rewards are exclusive to clients who successfully open fixed deposits with eligible new funds.

• Clients must complete the deposit and application process within the promotional period to qualify for the relevant promotions and rewards.
• In case of any disputes, Bank of China (Hong Kong) reserves the final decision.

Tip: Promotions and rewards are limited and offered on a first-come, first-served basis. Clients are advised to inquire and apply early to avoid missing out.

Application Process

Step-by-Step Guide

Clients wishing to apply for Bank of China new funds fixed deposit promotions can follow these steps:

1. Prepare personal identification documents and sole account details.
2. Submit the application via Bank of China (Hong Kong) online banking, mobile app, or in-branch.
3. Select the fixed deposit product and enter the deposit amount (minimum USD1,280, calculated at an exchange rate of 1:7.8).
4. Confirm that the funds qualify as eligible new funds and complete the fund transfer.
5. Read and agree to the relevant terms and conditions, then submit the application.

According to public information, since implementing the “Credit Factory” model, Bank of China (Hong Kong) has reduced credit approval time from about one month to five working days, with a 90% approval success rate. Some corporate clients can complete the entire application process within ten working days, indicating an efficient process with a significantly improved success rate.

Precautions

• Applicants must use a sole account for the application and calculate new funds in the same currency.
• Eligible new funds must be deposited within the promotional period, or the promotion will not apply.
• The bank calculates new funds based on the current total deposit value, the previous month’s end balance, and the principal already used for promotions; clients should verify account balances in advance.
• All rates and promotions are subject to the bank’s daily announcements, and actual amounts may vary due to exchange rate fluctuations.
• In case of disputes, Bank of China (Hong Kong) reserves the final decision.

Tip: Clients are advised to check the official website before applying to ensure all information is accurate.

Common Errors

By avoiding these errors and preparing the required documents according to the steps, clients can significantly increase application success rates and streamline the process.

Bank Comparison

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Major Banks

Hong Kong’s major banks offer diverse fixed deposit promotions to attract different types of clients. These banks include DBS Bank, Chong Hing Bank, OCBC Wing Hang Bank, HSBC, Hang Seng Bank, Citibank, and Shanghai Commercial Bank. Each bank’s promotional conditions and rates vary, and clients should select the most suitable product based on their needs.

DBS Bank attracts digital-savvy clients with its online-exclusive high rates, while Chong Hing Bank offers promotions for new clients with specific conditions. OCBC Wing Hang Bank and HSBC provide flexible deposit amount options, suitable for clients with varying fund sizes. Hang Seng Bank and Citibank attract market attention with competitive rates and diverse application channels. Shanghai Commercial Bank appeals to individual clients with low deposit thresholds and convenient online operations.

Rates and Terms

The following compares fixed deposit rates and terms across major banks:

Tip: Rates and terms may vary due to market fluctuations, and clients should check the latest bank announcements before applying.

Selection Recommendations

Choosing the right fixed deposit product requires considering multiple factors, including rates, minimum deposit amounts, and new funds definitions. For clients with smaller funds, HSBC and Hang Seng Bank’s low-threshold products are more suitable. Clients with substantial funds may consider Citibank’s high-rate products, especially for higher deposit amounts.

Additionally, clients preferring digital operations can opt for DBS Bank or Shanghai Commercial Bank, which offer convenient online application channels. For new clients, Chong Hing Bank’s promotional offers are worth exploring, though specific conditions must be met. Clients should select the bank and product that best align with their fund status, operational preferences, and financial goals.

Expert Advice: When selecting fixed deposit products, consider rates, terms, and personal needs comprehensively, and regularly review market changes to ensure optimal returns.

The Bank of China new funds definition helps clients clearly distinguish new funds and enjoy exclusive fixed deposit promotions. When applying, clients should note the following key points:

• The eligible new funds balance is the increase in the current total deposit value over the previous month’s end balance in the same currency, minus the principal of fixed deposits used for new funds promotions in the current month.
• The minimum amount for new funds fixed deposits is USD1,280 (approximately HKD10,000, calculated at an exchange rate of 1:7.8).
• 3-month fixed deposit rates range from 2.80% to 2.90%, with actual rates subject to bank announcements.
• Promotions apply only to sole accounts and must be calculated in the same currency.

Clients are advised to carefully compare the fixed deposit terms and rates of major Hong Kong banks based on their financial goals, selecting the most suitable product to maximize returns.

FAQ

How are new funds determined?

The bank subtracts the previous month’s end balance in the same currency from the current total deposit value, then deducts the principal already used for new funds promotions in the current month. Only this portion qualifies as eligible new funds.

Are fixed deposit promotions limited to sole accounts?

The Bank of China new funds definition and related fixed deposit promotions apply only to sole accounts. Joint accounts are not eligible, and clients should note the application conditions.

Is there a minimum deposit amount for new funds fixed deposit applications?

Yes. The minimum deposit amount is USD1,280 (approximately HKD10,000, calculated at an exchange rate of 1:7.8). Different banks may have varying requirements; refer to official information.

In which currency must new funds be deposited?

The bank accepts only the same currency for calculating new funds. Funds deposited in HKD can only be calculated as HKD new funds; other currencies are not applicable.

Will applications outside the promotional period qualify for promotions?

Clients applying outside the promotional period will not qualify for the related fixed deposit promotions. It’s recommended to closely monitor bank announcements and complete applications within the specified period.

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