Demand Deposit: Best Demand Deposit Account Rates

A demand deposit is money a depositor deposits into a bank account. The funds can be withdrawn on demand at a depositor’s discretion at any time. This article will explain in detail what demand deposits are, the difference between demand deposit and time deposit, what benefits demand deposits provide, and recommend some demand deposit accounts at the end. Read on to find out more if you are keen to learn more about demand deposits:

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What is a Demand Deposit?

A demand deposit is funds a depositor deposits into a bank account. As its name suggests, the money in a demand deposit account can be withdrawn on demand at a depositor’s discretion at any time for managing everyday spending, paying bills or withdrawing cash without penalty. Demand deposit accounts can be single ownership or joint, depending on your needs. Although it provides depositors with much flexibility, allowing you to use your money whenever needed, the downside of such an account is that the bank or financial institution will only pay either a low or no interest rate on the deposit. Instead, you are more likely to earn interest on a savings account. 

Demand Deposit vs. Term Deposit

ItemDemand Deposit Term Deposit
Purpose Everyday transactions Earning interests
Interest Rate Lower and fixed (or even zero)Higher and predetermined
Ease of accessGreaterLower
Maturity No - funds can be withdrawn at any time without penalty Yes - can only be withdrawn at maturity to avoid penalty

What are the benefits of demand deposit?

High Level of Liquidity

With demand deposit accounts, the funds can be easily accessed and this high level of liquidity is the major reason why many are attracted to set up these accounts. Depositors can withdraw cash from the demand deposit accounts or use the funds in the accounts to pay for something at any time without giving the bank any notice or penalty as long as there are enough funds in the account.

Allows Joint Ownership

Also, demand deposit accounts allow single ownership or joint ownership, depending on your needs or life stages. With joint ownership, account holders can manage finances together.

Best Interest Rates of Demand Deposit Account in HK (As of Oct 2022)

Bank Interest Rates
  • First HK$20,000: 3%
  • HK$20,000+ - HK$300,000: 0.3%
Livi Bank
  • First HK$50,000 or above: 1%
  • HK$50,000+ - HK$500,000: 0.4%
  • Remainder:0.1%
Airstar Bank
  • First HK$20,000: 3.6%
  • HK$20,000+ - HK$300,000: 0.5%
  • HK$300,000 or above:0.1%
Ant Bank
  • First HK$20,000: 1%
  • HK$20,000+ - HK$200,000: 0.5%
  • HK$200,000 or above:0.001%
ZA Bank
  • First HK$300,000:0.31%
  • HK$300,000+:0.01%
Standard Chartered Bank
  • HK$200,000- HK$30M:1.5%
  • HK$200,000 or above:0.8%
China Construction Bank
  • HK$2M - HK$5M:0.4%
  • HK$5,000 - HK$2M:0.1%

Best Demand Deposit Account

Bank Promo
Foreign Currency Time Deposit Interest Rate
up to 6%
Highest Cash Rebate
Bank Promo:
Open a Citigold account via your mobile to earn up to HK$48,800 cash rebate!
Valid until 30 Sep 2023
Enjoy limited-time savings rate and rewards when you open your Citigold account via MoneySmart!
MoneySmart Exclusive
MoneySmart Exclusive

Citi Plus Account

Min. Rate
1.17% p.a.
Max. Rate
2.67% p.a.
Min. Initial Deposit
【Extended offer!】From now until 30 September 2023, new customers who successfully open a Citi Plus banking account via MoneySmart and fund HK$50,000, can earn a total of HK$600 Cash Rebate and a Free Single Travel Insurance Plan (7 days) from Citibank!

Citi Plus Rewards for Everyone Lucky Draw:
Rewards for everyone! Simply by opening a Citi Plus account now and funding-in to get the chance to win Klook HK$5,000 Gift Card! You will still be entitled to HK$200 cash rebate even if you don’t win the lucky draw!
Valid until 30 Sep 2023
  • Easy application process: You can simply open your account on the Citi Mobile App
  • High interest rate: New customers can enjoy an extra savings rate up to 3% p.a. for the first HK$50,000 deposit (up to 4.8% p.a. in total). Also, enjoy Begin Citi Interest Booster with 0.3% p.a. base interest and enjoy up to 1.8% p.a.
  • No minimum balance requirements: HK$0 is required when setting up the account
  • Traveling made easy: Can directly use the foreign currencies in your account when traveling abroad or make cash withdrawals at overseas ATMs for free
Min. Rate
0.8% p.a.
Max. Rate
4.7% p.a.
Minimum Initial Deposit
  • Good interest rates: Loan-Deposit-Link: Customers can enjoy an interest rate of 0.68% p.a. for deposit. The max rate of WeLab Bank Core Account is up to 0.1%
  • Keep track of your finances: Customers can easily check the transaction and monthly statement through "Insights" to keep track of your finances.
Min. Rate
0.01% p.a.
Max. Rate
0.31% p.a.
Minimum Initial Deposit
  • Good interest rates: Earn up to 0.31% p.a. interest with Savings Go for the first HK$300,000. The remainder will get 0.01%.
  • Getting paid earlier: Enjoy getting paid up to 7 days earlier with a 7-day interest-free period with the first-in-town ‘Salary FastPass’.

Find the best Bank Accounts in HK!


What is a demand deposit?

A demand deposit is money a depositor deposits into a bank account that can be withdrawn on demand at any time.

Are demand deposits safe?

Yes, demand deposits are protected by Hong Kong Bank Deposit Protection Scheme and the protection is statutory.

What is the difference between demand deposit and time deposit?

The main difference between demand deposit accounts and deposit accounts is that demand deposits allow depositors to withdraw money at any time without penalty whereas time deposits do not.