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Characteristics of "Currency-Linked Premium Deposit" |
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- Allows you to enjoy a higher interest income than normal fixed
deposit
- Principal and interest will be repaid either in "Deposit Currency"
or your chosen "Alternate Currency" upon maturity, depending
on the movement of the foreign exchange market
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How does "Currency-Linked Premium Deposit" work |
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- First, you need to choose a "Deposit Currency" and an "Alternate
Currency" as your currency pair according to your needs.
- You deposit the principal in a "Deposit Currency" with a pre-determined premium interest rate.
- You choose a "Conversion Rate" between the "Deposit Currency" and the "Alternate Currency".
- On fixing date, we will compare the "Conversion Rate" with the market exchange rate ("Fixing Rate") to determine whether the principal and interest will be repaid in the "Deposit Currency" or "Alternate Currency".
- If the repayment is in "Alternate Currency", the original amount of principal and interest will be converted into the "Alternate Currency" at the "Conversion Rate".
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- Fixing date will be listed in the confirmation
- Fixing Rate is the relevant exchange rate set on the fixing date and is subject to the decision of the bank.
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Potential return analysis of "Currency-Linked
Premium Deposit" and its comparison with the return of normal fixed
deposit |
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Principal
in "Deposit Currency"
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USD50,000
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Tenor
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1 month
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"Alternate
Currency"
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EUR
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"Currency-Linked
Premium Deposit" Interest Rate
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5.77% p.a.*
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"Conversion
Rate"
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1.47*
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Normal
USD Fixed Deposit Interest Rate
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2.35% p.a.*
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*The rate was quoted on 20 February, 2008
for reference only.
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Scenario of Foreign
Exchange Market on Fixing Date
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EUR strengthens against
USD
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EUR weakens
against USD
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Return of normal USD
fixed deposit
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Fixing Rate on Fixing
Date (compared with "Conversion Rate")
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1.49 (higher than "Conversion Rate")
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1.46 (lower than "Conversion Rate)
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Not Applicable
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Repayment Currency
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USD "Deposit Currency"
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EUR "Alternate Currency"
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USD
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Repayment Amount
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USD50,000 x
(1 + 5.77% x 30/360)
= USD50,240.42
Gain: USD240.42
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USD50,000 x
(1 + 5.77% x 30/360)
= USD50,240.42
Repay in EUR : USD50,240.42/1.47
= EUR34,177.16
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USD50,000 x
(1 + 2.35% x 30/360) = USD50,097.92
Gain: USD97.92
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If convert to USD at the prevailing exchange rate, customer will receive :
EUR34,177.16 x 1.46
= USD49,898.65
Loss: USD101.35
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Remark : The example shown above is for
reference only and shall not constitute any representation or warranty
by the Bank in respect of any possible gain or loss. Please refer to the related risk disclosure statement for details. |
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Return under different market situations will
vary as follows: |
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Scenario of Foreign
Exchange Market on Fixing Date
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Fixing Rate on Fixing
Date
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Repayment Amount on
Maturity Date
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Repayment Amount converted
into USD
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Gain/Loss (annualized
rate)
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EUR strengthens against
USD
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1.490
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USD50,240.42
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Not Applicable
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Gain USD240.42 (+5.77%)
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EUR remains the same
against USD
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1.470
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USD50,240.42
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Not Applicable
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Gain USD240.42 (+5.77%)
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EUR weakens against USD
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1.466
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EUR34,177.16
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USD50,103.72
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Gain USD103.72 (+2.49%)
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EUR weakens significantly
against USD
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1.455
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EUR34,177.16
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USD49,727.77
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Loss USD272.24
(-6.53%)
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Remark : The above-mentioned scenarios
and figures are for illustration purpose and for reference only.
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Enjoy the flexibility of "Currency-Linked Premium
Deposit" |
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- 9 different currencies available, including EUR, AUD, NZD,
USD, JPY, CAD, GBP, CHF and HKD
- In addition to the currency combinations with USD or HKD. Investment combinations including AUD/NZD, AUD/JPY and EUR/JPY are now available to fit your unique need
- Minimum deposit amount as low as USD5,000 or its equivalent
- Flexible deposit periods - 1 week, 2 weeks , 1 month, 2 months, 3 months and 6 months.
- Customers can choose different ˇ§Conversion Rateˇ¨
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Currency-Linked Premium Deposit Best Fits those
who: |
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- Desire a higher return of foreign currency
investment
- Hold a currency which is expected to
be relatively stable in the market
- Are willing to hold either the "Deposit
Currency" or "Alternate Currency", e.g. you may
need the currencies for emigration, business or your children's
study overseas.
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| Enjoy the Flexibility
of "Currency-Linked Premium Deposit" |
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| Act now to grasp the chance for higher
potential returns! Visit any Dah Sing Bank branches to check out
more about "Currency-Linked Premium Deposit". |
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| * The annualized interest rate (28%) is not guaranteed and is for reference only. It is quoted as of 17 June 2008, with reference to the NZD/USD interest rate and the relevant deposit tenor, deposit amount and the related conversion rate. The actual annualized interest rate received by customers is subject to the selected currency pairs, deposit tenor and amount, the set conversion rate and the market conditions prevailing at the relevant fixing date. Please contact our staff for the applicable rates. |
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Currency-Linked Premium Deposit" is not the same as nor should it be treated as a substitute for normal time deposits. Investment involves risks. Investors will be subject to the risk of the fluctuation of the foreign exchange market. Investors should seek professional advice and refer to the offering documents of respective products where necessary to well understand the product features and potential risk involved before making investment decisions.
Interest on Deposit is calculated based on the nominal amount of the deposit currency. As the Deposit and its interest will be paid in the Deposit Currency or the Linked Currency, whichever has depreciated against the other, the customer will bear the cost involved due to exchange depreciation.
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For more information, please
call 2828 8001
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