Tax-free interest on a deposit, over your chosen period.
Interest earned (tax-free)
—
Closing balance
—
Tax on interest
—
Your breakdown
Updates live as you type
Step
Amount (HKD)
Worked example
Suppose you hold HK$200,000 in a savings account paying 3.5 percent a year and keep it there for 12 months. The simple interest is HK$200,000 times 3.5 percent times one year, which is HK$7,000. Because Hong Kong does not tax interest on bank deposits for individuals, there is no tax to deduct, so the HK$7,000 is yours in full and the closing balance is HK$207,000. If you held the same balance for only six months, the interest would be pro-rated to HK$3,500. Over a multi-year period that actually compounds, the effective return would be a little higher than this simple-interest figure, because each year you would earn interest on the previous year's interest too.
How it is calculated
The interest shown is simple interest over the period you enter: the balance times the annual rate, pro-rated by the number of months divided by twelve. Hong Kong levies no tax on interest from bank deposits or general savings held by individuals, so the net interest equals the gross interest, and the tax figure is always zero. The closing balance is just the opening balance plus that interest. This is deliberately a single-period simple calculation, so it suits a fixed balance over a defined window. If your account compounds, paying interest that itself earns interest, use the compound interest tool instead, which will show a slightly larger figure for the same rate and term.
Frequently asked questions
Is bank interest taxed in Hong Kong?
No. Hong Kong does not tax interest on bank deposits or general savings for individuals, so the gross interest you earn is also the net amount you keep. This tool shows simple interest over the period entered. For a multi-year deposit that compounds, the effective return would be slightly higher.
What is the difference between simple interest and compound interest for savings?
Simple interest is calculated on the original principal only, so the same dollar amount is added each period. Compound interest is calculated on the principal plus accumulated interest, meaning each period earns a little more than the last. For short deposit windows of 12 months or less, the difference is small, but it grows noticeably over multi-year periods.
Which Hong Kong banks offer the highest savings deposit rates in 2025?
Rates vary between institutions and change frequently. Virtual banks such as ZA Bank, Mox, and Livi typically offer promotional savings rates above 3 percent, while traditional licensed banks often pay lower headline rates on standard savings accounts. Comparing current rate sheets directly on each bank website before committing is recommended.
Does the Hong Kong Deposit Protection Scheme cover my savings?
Yes. The Hong Kong Deposit Protection Board protects eligible deposits up to HK$500,000 per depositor per Scheme member bank. Most licensed banks are Scheme members. Virtual banks licensed by the HKMA are also covered, so deposits held with them are protected up to the same limit.