CNBC anchor Emily Lau has calculated that you’ll need to have HK$2,000,000 on deposit with HSBC, for a whole year to earn the miserable HK$20 it costs to buy a small cup of coffee at Starbucks.
Accoding to the news report, HSBC has come to this decision because there’s too much cash in Hong Kong. They call it Hot Money. Aparantly other banks in Hong Kong are considering cutting interest rates as well. HSBC is usually the leader in such matters.
So how does this happen when we are supposed to be in a middle of a global financial crisis?
I think maybe it’s because the HK Government has been pumping liquidity into the banking system.
So what’s an ordinary person expected to do to earn a fair return on their savings? Email me your thoughts at email@example.com