A new way to play time deposits: the interest is paid immediately and 4.6% has been earned before maturity. Pay attention to 3 major details – Hong Kong Economic Daily – Financial Management – Interest Collection Strategy

In order to rush for deposits, virtual banks often offer deposit discounts and often use new concepts to attract customers. Today, Mox Bank, a subsidiary of Standard Chartered, launched a new product called “Instant Interest on Time Deposits”, which it claims is “the first of its kind in Hong Kong.” You can get instant interest returns as soon as you start a time deposit.

Traditional time deposits often have to wait for the maturity date before the principal and interest can be recovered. Therefore, when making time deposits, you must pay attention to “liquidity risk”. That is, if you need money urgently and a large amount of funds are locked up on a regular basis, you must pay attention to the “liquidity risk” in advance. Withdrawals may be subject to penalty fees.

Under the new gameplay, Mox will display the prepaid interest that customers may be entitled to receive before they open a “qualified time deposit account” and deposit the prepaid interest into the customer’s Mox account after opening. However, it should be noted that the principal is still locked and cannot be taken away until the expiration of the term.

Mox Bank’s current annual interest rate for Hong Kong dollar time deposits is the highest at 4.6%. If you want to make the most of this 4.6% using new methods, you should pay attention to the following points:

1. The upper limit of 4.6% is 500,000 yuan but you can do 5 transactions at the same time

Seeing this new offer of “instant interest payment”, many people may think that they can use the method of “borrowing money for fixed term” at the same time to achieve zero-cost arbitrage. However, Mox Bank’s 4.6% is only limited to new funds. In addition, there is also an upper limit of NT$500,000, which may seem unreasonable.

However, according to Mox, this fixed deposit transaction can be done 5 times at the same time, which means that up to 2.5 million yuan of new funds can be used, divided into 5 fixed deposit transactions, to do 4.6% for 6 months, and the interest rate for each transaction is about $11,500. . If it is a 12-month deposit period, the annual interest rate is 4.25%, and each transaction earns interest of $21,250 per year. There are a total of 5 time deposits. That is, as soon as the time deposit is opened, you can first collect interest of more than 100,000 yuan.

At present, many tax loan discounts of less than 2% require a minimum borrowing of 1.5 million yuan, and the monthly repayment amount is as high as 6 figures. If you can cash out more than 100,000 yuan with Mox’s new method, “Tax loan can be done” The cost of “regular” will be greatly reduced.

However, you still need to pay attention to many other factors when borrowing money on a regular basis. Please see the details:The low-cost arbitrage method allows you to earn more than 50,000 yuan back and forth during the tax season!

2. If you withdraw the principal before maturity, money will still be deducted.

Although you can earn interest immediately, your principal will still be locked in a certain deposit in your account. Mox’s terms state that if you receive prepaid interest and subsequently withdraw the time deposit early before the maturity date of the relevant eligible time deposit account, the bank will deduct the principal from the time deposit.Deduct an amount equal to the prepaid interestand then deposit the remaining amount into the account.

3. A longer deposit period is required for immediate distribution. A short deposit period is not suitable.

Mox’s interest is paid immediately, which can only be achieved with the following three-month deposit terms: 24 months, 12 months and 6 months. Therefore, readers still need to be fully prepared. It will take at least 6 months to get back the principal of up to 500,000 yuan. If you want a shorter deposit term of 3 months and want instant interest payments, this time you won’t be satisfied.

If you want to pay attention to other high-interest time deposits, you must read:What is the best interest rate for time deposits? Existing funds are as high as 5%, and new funds are 5.3% (with the highest interest rate for different deposit periods)

More high interest products:

[Time Deposit 2023]6.8% tax loan discount is more practical than 5.3%! The 5% long-term interest rate increased to 8 banks (newly added 5% from Public Bank, China Construction Bank, and CCB)

[High-interest products]Currency funds have become the new investment favorite. Is 9% better than fixed-term investment?

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Top 10 high-interest funds with annualized dividends of 12% per month. These 4 are earning both interest and value this year (updated in November 2023)

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