5 Hong Kong banks and their fees and rates for international transfers

If you need to send money abroad, you’ll be looking for a fast, safe and simple cross border transfer service. The costs of sending money overseas can also vary widely depending on the provider you use - so doing some research is essential to make sure you don’t pay more than you need to for your money transfer.

This guide gives you a run through of the costs to transfer money with 5 of the major banks in Hong Kong. We’ll also cover an alternative solution to help you save - cheap online international transfers with Wise.

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Banks in Hong Kong: a quick note before we begin

Before we get started, it’s worth noting that here we are focusing on major traditional Hong Kong banks. Recently, Hong Kong has also started to welcome virtual banks which run entirely online, and don’t have a branch network.

It’s early days for online banks here, and as such most of the virtual banks currently operating have only limited options for international payments. Some don’t offer the option to send money abroad at all. If you currently use a digital HK bank you might need to choose an alternative way to send your payment overseas.

Keep an eye on the services available from your virtual bank online, or check out our summary of virtual banks in Hong Kong, here.

Fees and rates for international transfers with HSBC

The cost of sending an international payment with HSBC will depend on whether you arrange the transfer online or in a branch, and the type of account you hold¹.

You’ll pay HK$50 for a transfer set up through online banking, but this rises steeply to HK$120-240 for payments made in branch. If you want to arrange a payment in a branch after 12 noon or on a Saturday, and want it to be processed on the same day, you’ll have to pay an extra HK$40. There are also additional penalty fees if you submit a transfer request in a non standard form - for example if you don’t use the right paperwork or if you want to fax in your request.

The exchange rate HSBC uses will be set by the bank, and may include a markup. It’s also worth noting that payments will be processed using the SWIFT network, which can mean additional charges are applied by other banks. For some destination countries, you can opt to pay an extra HK$50-150 to cover some of these costs. Otherwise, these SWIFT fees will be deducted from the transfer as it’s processed, meaning your recipient gets less in the end.

Here’s an example to show the costs of sending money overseas with HSBC:

A cost example: sending 1000 HKD from Hong Kong to the UK (GBP)

*All fees and exchange rates correct at time of research - 21 September 2020

Fees and rates for international transfers with Bank of China

Sending money overseas with Bank of China Hong Kong will cost HK$65 if arranged online. If you set up your payment in a branch you’ll pay HK$210².

Payments are made using the SWIFT network, which means that correspondent bank charges may apply. If you don’t want these costs to be deducted from the amount which ends up in your recipient’s account, you’ll have to pay upfront in advance. The costs vary depending on the currency and country you’re sending to. If you’re making a USD payment, for example, you’ll have to pay USD160 - for payments to the UK the cost is GBP20.

Here’s an example of the fees when sending a money transfer to the United Kingdom:

A cost example: sending 1000 HKD from Hong Kong to the UK (GBP)

*All fees and exchange rates correct at time of research - 21 September 2020

Fees and rates for international transfers with Hang Seng Bank

Sending an international telegraphic transfer (TT) payment with Hang Seng bank using your normal online banking will cost HK$65. If you’d rather arrange your payment in a branch you’ll have to pay more HK$220-260 depending on the details of the transfer⁴.

There are also a few other costs to be aware of. Firstly the exchange rate used may include a fee in the form of a markup. This is common but can mean you pay more than you think. You may also find that third party fees - described by Hang Seng as correspondent bank charges - are levied. These are usually deducted from the payment as it’s processed, or you can opt to pay an extra fee, which varies by destination country, to cover these costs upfront. You’d need to do this if you want to be sure of exactly what amount your recipient will get in the end.

Let’s take a look at an example of a payment through Hang seng Bank:

A cost example: sending 1000 HKD from Hong Kong to the UK (GBP)

*All fees and exchange rates correct at time of research - 21 September 2020

Fees and rates for international transfers with China Construction Bank

International TT payments with CCB cost HK$100 for regular personal customers, If you have a different account you might find the fee is slightly lower - HK$60 for Premier Banking customers, or HK$80 for Wise Banking customers⁵. There is no upfront fee for outward payments if you have a Premier Select account - although you should be aware that all account types may find a markup added to the exchange rate used. This can push up the overall costs.

CCB also charges at least HK$250 to amend, check up on or cancel a TT payment once it’s been arranged. Here’s how a typical payment might work out with CCB:

A cost example: sending 1000 HKD from Hong Kong to the UK (GBP)

*All fees and exchange rates correct at time of research - 21 September 2020

Fees and rates for international transfers with BEA

Arranging an international payment online with BEA will cost HK$20 in handling fees and a further HK$80 in cable charges. Making the same payment in a branch could cost up to HK$280, made up of a handling fee of HK$150, and a cable charge of HK$100-130⁶.

As with other traditional providers you can expect that the exchange rates used by BEA include a markup. You may also have to pay SWIFT fees. These are usually deducted from the payment as it is transferred, but you can also arrange to pay upfront. The costs vary by destination - for example, the fee is 0.1%-0.15%, with a minimum HK$250 to send to Japan or the Philippines.

Here’s a look at a typical payment using BEA:

A cost example: sending 1000 HKD from Hong Kong to the UK (GBP)

*All fees and exchange rates correct at time of research - 21 September 2020

Making international transfers from Hong Kong? You could save more with Wise

Your bank isn’t your only option when sending money abroad. You could save money using Wise.

All Wise payments use the mid-market exchange rate with no markup. This means no hidden fees, just an upfront, transparent charge per transaction. Because Transferwise uses a smart new approach to avoid the SWIFT system, you can also be sure that there are no correspondent bank fees to pay. In fact you can see exactly what your recipient will receive before you confirm the transfer. Simple.

Here’s how Wise measures up against the banks we have profiled here:

A cost example: Sending HKD 1000 from Hong Kong to the UK (GBP)

*All fees and exchange rates correct at time of research - 21 September 2020

Join Wise now and start saving 💰

Sending money overseas with your bank is a familiar option but can cost you more than you expect. Check out alternatives like Wise before you decide how to make your international transfer, to get the best deal for your needs.

Sources used in the article: