【HSBC Analysis】HSBC Counter Deposit Ticket Charges $5 Per Sheet - Driving Away Customers or Attracting Funds?

HSBC
(00005)
Starting May 1st this year, a fee of HKD 5 will be charged for each check deposited at branch counters by “Personal Comprehensive Financial Accounts / Personal Customers” and “HSBC One” customers. Currently (as of March 16, 2026), these customers can deposit up to 15 checks at no charge at branch counters; any additional checks beyond 15 will be charged HKD 1 each. What is the significance of this fee adjustment?

First, it releases branch teller productivity. Branches are primarily sales points for financial products. When customers deposit checks at the counter, tellers need to verify and check the checks, which is a labor-consuming administrative process with no profit from an operational perspective. Automating and self-serviceing these transactions—allowing customers to deposit checks via the “Deposit Easy” machine—can save the bank some ongoing costs. It also frees up tellers to spend more time selling products to customers at the counter, boosting sales performance.

Second, the fee helps to “premium-ize” branch services. Looking closely at the fee arrangement, HSBC Premier clients with a total wealth of at least HKD 1 million, HSBC Jade clients with at least HKD 7.8 million, and HSBC Global Private Banking clients with at least USD 2 million currently enjoy exemption from charges for depositing up to 15 checks at the counter; beyond 15 checks, HKD 1 is charged per additional check. Starting May 1st, this will be adjusted so that all checks, regardless of number, will be fully exempt from fees.

These higher-end clients are more likely to engage in wealth management transactions such as investments and insurance. Although the exemption from fees for depositing more than 15 checks may not save these large clients much compared to the current charges, it can psychologically make clients feel that the bank is offering attentive, warm service—possibly even giving them a “good feeling” that they are being treated as high-end clients with special privileges.

For bank tellers, although processing large volumes of checks can be time-consuming, it also creates opportunities for tellers to chat with high-end clients, understand their financial needs, and potentially facilitate wealth management transactions. Therefore, from the bank’s perspective, they are likely happy to waive the fees for these high-end clients depositing large numbers of checks.

A HSBC spokesperson responded to our inquiry, stating: “The latest fee adjustment aims to encourage customers to use other free self-service channels such as the ‘Deposit Easy’ machines, mobile apps, and check deposit boxes, to better distribute customer needs and enhance service experience. After considering various factors, we believe this adjustment is within market acceptability. Additionally, customers under 18 or over 65, recipients of comprehensive social security assistance, government disability allowances, or those with physical or visual disabilities can deposit checks at the counter without charges.”

What about other issuing banks’ check deposit arrangements? As of now, Bank of China Hong Kong (02388) states that customers depositing a large number of checks—up to 30 checks per day—are exempt from charges; deposits exceeding 30 checks per day will be charged HKD 1 per check. Standard Chartered (02888) Hong Kong webpage indicates that individual customers depositing up to 30 checks per day are fee-free; if exceeding 30 checks in a day without a completed form, HKD 2 per check is charged; with a completed form, HKD 1 per check is charged.