Standard Chartered scraps small-deposit fee waiver for MPF-linked accounts (2011)

As of October 2011, Standard Chartered had notified customers it would end the small-deposit fee waiver long enjoyed by MPF-linked account holders: from 1 November, savings accounts with an average balance below HK$10,000 would be charged HK$100 a month — the steepest such fee among Hong Kong’s five major banks. An MPFA board member and legislator condemned the move as lawful but heartless toward low-income savers who could not switch MPF trustees.

How did the big five banks’ policies compare?

Who was exempt?

Standard Chartered’s exemptions covered customers over 65 or under 18, CSSA, disability or old-age allowance recipients, and those holding a mortgage, time deposit, insurance or fund with the bank, or receiving payroll by autopay. In practice the hardest hit were low-income members living pay cheque to pay cheque, and former employees whose preserved MPF accounts sat with the bank.

How did the MPFA and the Consumer Council respond?

The board member suggested affected members consolidate preserved accounts with another provider and close the Standard Chartered savings account to escape the fee; he and the consumer watchdog’s chief executive both urged the bank to keep the waiver. An MPFA spokeswoman stressed that MPF accounts themselves are protected by law — a bank cannot deduct service fees from an MPF account on the grounds of a low savings balance. The bank said it reviewed fees from time to time.