Lai See | A matter of some interest at Standard Chartered

A reader has complained bitterly to us over what he feels are Standard Chartered Bank's opaque practices with regard to time deposits.

He recently opened an integrated currency account with the bank in the hope of preserving his savings in a 12-month time deposit. This he did online and put in US$35,000 for which he receives the princely yield of 0.1 per cent. He also wanted a yuan time deposit but this could only be done at a branch.

After a 30-minute wait at the Chai Wan branch he was presented with a rate sheet that offered 2.3 per cent for a yuan 12-month time deposit. But he was astonished to see that the rate being offered for a US dollar 12-month time deposit was 0.85 per cent - considerably higher than the 0.1 per cent offered online. Indeed, the teller said there were always better rates on offer at the branch than online.

He then tried to break his original time deposit but discovered this would cost him US$1,800. Long gone are the days when the banks would simply forfeit interest when breaking a time deposit. Such is their hunger for fees they now take a slice of the principal too.

Asked to explain the disparity in time deposit rates Standard Chartered told that, "the bank offers different promotions through various channels, catering for different segments and customer needs. The preferential deposit interest rates shown on our website are a special promotional campaign targeting new fund deposits at a branch or through phone banking. Therefore, time deposits set up through online banking are not eligible for this promotional offer".

The bank also directed us to a link showing these promotional offers online.

However, anyone visiting the StanChart website and clicking on "time deposits" will not find any mention of promotional offers, though possibly account holders may have better access. Nevertheless our reader didn't spot them. If they are there, they are certainly well hidden.