Dear Sir,

I see that HSBC worldwide made after-tax profits of $17.5 billion last year. Looking at the disparity between the deposit savings rates and mortgage rates as shown on the HSBC Bermuda website, Bermuda looks as though it has made a significant contribution to this profit.

I have reviewed the websites for HSBC USA, Canada and Bermuda, and they make very interesting reading. To open a one-year savings deposit account in Bermuda you need to invest at least $5,000. If you invest for one year, you receive a paltry 1.97 per cent. On the other side, the interest that HSBC charges on mortgage loans varies from 6.49 per cent to 6.75 per cent.

HSBC USA offers a one-year savings deposit rate of 4.85 per cent for any investment of more than $1. This is almost 3 per cent more than Bermuda is offering. HSBC USA’s mortgage rates range from 6.8 per cent to 7.7 per cent, which is not that much different to Bermuda.

HSBC Canada offers a savings deposit rate of 5.5 per cent for a one-year term with a minimum investment of $500. Its mortgage rates vary from 5.97 per cent to 6.7 per cent, again similar to Bermuda. So HSBC Canada offers a savings rate of 5.5 per cent, HSBC USA offers 4.85 per cent and HSBC Bermuda just 1.97 per cent.

When I e-mailed the bank to find out why there was such a huge difference in the interest rates offered by the respective banks, I received a very short answer saying that they were in different jurisdictions. Well, I knew that and it did not answer my question.

Come on, HSBC Bermuda, you can surely do better?

STEVEN DONNELLY

Paget