Hong Kong MPF Prescribed Savings Rate 2027 Calculator

The Hong Kong MPF Prescribed Savings Rate (PSR) is the minimum interest floor that MPF Conservative Funds must pay — calculated monthly by MPFA from the average HKD savings deposit rate of the three largest licensed banks. If a Conservative Fund's monthly return is below PSR, the provider must waive that month's management fees. The 2026-27 PSR has hovered around 3.5-4.5% as HKD rates closely track the US Federal Funds rate.

What the PSR Is and Why It Exists

The PSR is computed monthly by MPFA. It equals the simple average of the prescribed-period savings deposit rate published by the three largest Hong Kong banks (currently HSBC, Bank of China HK, Hang Seng). Since HKD is pegged to USD, the PSR closely tracks US Fed policy — it rose from near zero in 2021-22 to ~4.0% by 2024-25. The PSR exists because Conservative Funds are sold as a safe parking option, but in low-yield environments providers were charging fees that exceeded the return — leaving members with negative net yield. The PSR floor solves this: if your fund earns less than the savings rate, your fee is waived.

When to Use the Conservative Fund

The Conservative Fund is appropriate only for members 5 or fewer years from retirement, or for short-term tactical de-risking before market events. The long-term cost of parking MPF in Conservative is substantial: historical average ~2-4% return vs ~6-8% in MPF Equity Funds. Over 30 years, that gap can mean a 50-70% smaller retirement balance. The MPF Default Investment Strategy (DIS) Core Accumulation Fund (CAF) is generally a better choice for most members under 50 — it's a balanced 60/40 portfolio that auto-derisks from age 50 to 64. Conservative Fund is the tail-end safety net, not the cruise mode.

Last updated May 2026. Sources: MPFA, IRD Hong Kong.