What is silver bond? How is it charged?
Silver Bonds are retail bonds issued and guaranteed by the Government of the Hong Kong Special Administrative Region (HKSAR), designed specifically for senior residents. Their primary objective is to provide seniors with a low-risk investment option offering stable, guaranteed returns to combat inflation and protect retirement savings. Subscriptions are exclusively open to senior citizens holding a valid Hong Kong Identity Card (HKID) who meet the specified age requirement (currently typically 60 years old or above).
The interest on Silver Bonds is linked to Hong Kong’s average inflation rate and features a fixed "minimum guaranteed interest rate." Even if the inflation rate falls, investors will still receive the guaranteed minimum interest. These bonds do not have a secondary market and cannot be traded on the stock exchange.
Silver Bonds have a board lot size of HK$10,000, a 3-year tenure, and pay interest every 6 months (semi-annually). The fee structure is unique: while the HKSAR Government charges no fees at the official level, whether any costs are incurred depends on the bank or brokerage handling the transaction. In line with prevailing market practice, many financial institutions offer fee-waiver packages covering subscription fees, deposit/safekeeping fees, custody fees, and interest collection fees. Please consult the guidelines of individual institutions for specific details.
