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Extra Yield Deposits
Information
What is Extra Yield Deposits?
As a currency linked deposit, Extra Yield Deposits allows you to take advantage of exchange rate movements and potentially earn a higher interest rate than with a normal Hong Kong dollar or foreign currency time deposit. This product may be suitable for investors who are happy to accept a low to medium level of investment risk.
When your Extra Yield Deposit matures, you will be paid in either your original deposit currency or linked currency, depending on the exchange rate on the fixing date (the fixing date will be set out in the Confirmation that will be given to you once your Extra Yield Deposit is placed, usually two business days before maturity).
If your selected currencies move in the direction you anticipate, you will enjoy favourable returns as expected in the deposit currency. If they move in the other direction, you will still receive your principal and interest in the linked currency.
Features
Time deposit period ranges from one month to six months
Minimum deposit amount of USD250,000 (or its equivalent in other currencies)
Choose two currencies - a deposit currency and a linked currency including US dollar, Australian dollar, Canadian dollar, euro, pound sterling, New Zealand dollar, Japanese yen or Swiss franc to suit your need for foreign currency
At your choice of conversion rate, we will then quote an Extra Yield Deposit interest rate, which is fixed when the Extra Yield Deposit is placed
Risk disclosure:
The net return in relation to Extra Yield Deposits will depend upon market conditions prevailing at the deposit fixing time on the deposit fixing date. You must be prepared to incur loss as a result of depreciation in the value of the currency paid. Such loss may offset the interest earned on the deposit and may even result in losses in the principal amount of the deposit. If the deposit currency is not your home currency, and you choose to convert it back to your home currency at maturity, you may make a gain or loss due to exchange fluctuations. If you have any concerns about this product, you should consult our professional financial advisers.
