[RastaMan]

Reading a comment on the other thread (thanks!) I checked out the CDs at HSBC. Forgive my ignorance but there are 3 CDs with the following characterstics:

0.000% - 14-Mar-08 - Aa2/AA-
1.850% - 03-Mar-08 - Aa2/AA-
10.295% - 19-Feb-08 - Aa2/AA-

All 3 in HKD and all 3 Non-Extendable CDs

Now, why would anybody buy a CD with 0% interest rate, if s/he can buy one with 10.295% interest rate???

What am I missing this time?

Thanks!

[freeier]

not properly listed for reaching a fair conclusion

[RastaMan]

That's what was listed in their page. All the information they provided is there. Though I am sure they would have more information if I called them up.

Isn't it weird?

[freeier]

actually, i don't think CDs are that common in asia.
could it be something else. i'd guess its more like a credit linked or a equity linked or a forex linked deposit to have such high yield or coupon.

[PDLM]

You need to look at the pricing and the indicative yield. A $100 CD doesn't generally cost $100.

For example, the zero coupon ones cost about $96 at the moment, but those with a positive coupon will cost more than $100. The yield on most HSBC HKD CDs at the moment is around 3%. But the minimum purchase (through HSBC Online at least) is HKD100,000, so unlikely to be of interest to you given your other posts.

[RastaMan]

Thanks. For 3% I can also keep the money in my savings account
So, what shall I look at? Funds until I have 100,000, and then bonds?
I actually noticed that for many bonds the minimum amount is HKD 300,000, and then you have to increase HK$100,000 a time. Is this actually so, or am I missing something? And if it is so, how come? In Europe you can start buying bonds for a tousand bucks or so.

[TypeIII]

Yeah I noticed the same thing. Back in Canada I was able to do a CD for about a thousand dollars but out here I had to do a minimum of $100k HKD with my bank (Fubon).