Do you have a million sitting idle in your savings account, slowly losing value to the beast of inflation? Are you hoping to earn steady returns through fixed deposits but find yourself overwhelmed by the wide range of bank rates and complex calculation methods? Don’t worry, this article is your one-stop solution. We will start with the basics of fixed deposit calculation, breaking down the formulas step by step; then move on to a market analysis comparing the latest fixed deposit interest rates for 1 million across major banks; and finally, take an in-depth look at the exclusive fixed deposit plans offered by the Bank of Communications. By the end of this article, you’ll have the clarity and confidence to choose the most secure and rewarding path for your capital.
When it comes to fixed deposits, the most common question is “How much interest will I earn?” In fact, the principle behind calculating interest is quite simple. It’s just like cooking, preparing the right ingredients and following the right recipe, and the result will naturally turn out well. The “recipe” behind it all is the golden formula for calculating interest.
Before revealing the formula, let’s first understand the three core elements that determine interest:
Once you understand these three elements, you essentially hold the key to calculating your fixed deposit earnings.
This is the universal formula for calculating fixed deposit interest. It looks simple, right? Let’s break it down:
Interest earnings = Your deposited principal × the agreed annual interest rate × (actual deposit days / 365 days)
Here’s a small but important detail to note: most banks use 365 days as the standard basis for calculating daily interest. This means that even if you deposit your money for only a few months, the bank will convert the annual interest rate into a daily rate and multiply it by the actual number of days your funds are held, ensuring precise interest calculation.
Theory is nothing without practice, so let’s look at a concrete example:
Substitute into the formula:
Interest = 1,000,000 × 0.017 × (365 / 365) = NT$17,000
✅ That’s right, it’s that simple! By placing 1 million in a fixed deposit account at a 1.7% interest rate for one year, you can earn a steady NT$17,000 in interest. While this amount won’t make you rich overnight, it’s definitely an effective first step toward outperforming low savings rates and fighting inflation.
After understanding how to calculate, the next key question is: where should you place your money? The market is filled with a wide range of banks, and interest rates are constantly changing. To help your million in funds achieve the highest returns, we have compiled the current interest rates across major banks to aid you in making the smartest choice.
The table below compiles the posted one-year fixed deposit rates of selected major banks in Taiwan and Hong Kong for your easy reference. (Please note: The rates below are reference information at the time of writing. Actual rates are subject to each bank’s latest official announcements.)
| Bank | Region |
One-Year Fixed Deposit Rate (Reference) |
Remarks |
| Bank of Communications (Hong Kong) | Hong Kong |
Around 3.5% to 4.0% |
Frequent new fund or large deposit promotions |
| Bank of Taiwan | Taiwan | Around 1.7% | Leading state-owned bank with stability |
| Cathay United Bank | Taiwan |
Around 1.7% |
Higher rates may be offered through digital channels |
| HSBC | Hong Kong | Around 3.6% | Preferential rates for premier banking clients |
| Standard Chartered Bank | Hong Kong | Around 3.8% | Welcome bonuses may apply for online account opening |
In addition to standard one-year fixed deposits, many banks periodically launch short-term “flash high-interest” promotions to attract funds. These offers usually apply to deposits with terms of 3 or 6 months, and their interest rates can sometimes exceed those of one-year fixed deposits. Such plans are especially suitable for investors who need a short-term place to park their funds, allowing them to earn higher interest than regular savings while maintaining flexibility.
To find the best option among the many available, you should not look at posted interest rates alone. By mastering the following three tips, you can think like a professional:
Among the many banks, Bank of Communications (Hong Kong) stands out for its flexibility and competitive fixed deposit rates. Let’s take a closer look at its key features.
Bank of Communications (Hong Kong) offers highly competitive HKD fixed deposit rates, especially for large deposits or premium banking clients. The bank typically provides tiered interest rates, where larger deposit amounts qualify for higher rate brackets. For deposits of 1 million HKD, you can usually reach the upper tiers of interest rates. It is recommended to check the latest “Featured Surprise Rates” directly through its online banking or mobile app, as there are often pleasant surprises.
“Interest Choice” is a special fixed deposit program launched by the Bank of Communications (Hong Kong). Its main feature is that customers can choose to receive interest monthly or collect both principal and interest in a lump sum upon maturity.
Opening a fixed deposit through Bank of Communications’ digital channels is very convenient. Existing customers only need to log in to online banking or the mobile banking app, select “Deposits” > “Open Fixed Deposit”, enter the amount, choose the deposit term and interest payout method, and complete the process in just a few steps, all without visiting a branch.
Once you become familiar with stable tools like fixed deposits, you may want to explore more diversified investment options. Understanding different financial products is the first step toward building a comprehensive wealth management perspective. We recommend reading “The Ultimate Guide to Forex Margin Trading: Leverage, Risks, and a Complete Beginner’s Overview” to add a new chapter to your investment knowledge base.
Yes, but usually at a cost. Early withdrawal (also known as “premature termination”) means the bank may cancel the originally agreed interest or recalculate it based on the savings account rate. In some cases, a handling fee may also be charged. Therefore, before committing to a fixed deposit, make sure that the funds you invest will not be needed during the agreed period.
A fixed rate means your deposit rate remains unchanged throughout the term, regardless of whether the central bank raises or lowers interest rates. A floating rate, on the other hand, fluctuates according to the bank’s posted rates. The key to choosing lies in your view of future interest rate trends: if you expect rates to fall, selecting a “fixed rate” allows you to lock in today’s higher return; if you expect rates to rise, a “floating rate” lets your deposit interest increase accordingly.
Yes. This is known as a “jumbo deposit” promotion. Many banks set different deposit tiers, where higher amounts qualify for better rates. For example, deposits of 100,000, 500,000, or 1,000,000 may each have distinct interest rates. This is why, when comparing options, you should always check based on your actual deposit amount to obtain the most accurate information.
That depends on the tax laws of your region. In Taiwan, interest income is considered part of total income and must be declared for income tax purposes, though a certain portion is usually tax-exempt. In Hong Kong, interest earned from personal savings deposits is tax-free. It is recommended to check the tax regulations in your local jurisdiction for accurate information.
In summary, maximizing your interest income through fixed deposits comes down to “diligent comparison” and “staying informed”. This article has covered everything from the core fixed deposit calculation methods to practical comparisons of one-million fixed deposit rates across major banks, with a detailed analysis of Bank of Communications’ deposit plans to give you a clear roadmap.
The key principles for making your final decision are:
Finding a safe and high-yield home for your million is a crucial step in financial planning. We hope this article helps you take your first steady step toward growing your wealth.
