FX Linked Deposit

Enjoy Irresistible Interest Rates on Your Deposits

A new deposit service which lets you earn a higher interest than an ordinary time deposit, when the FX market movements match your view.

Simply choose between our Principal Protected Deposit or High Yield Deposit according to your investment needs and risk tolerance; and then select a currency pair according to your market view (for High Yield Deposit, the Deposit and Linked Currency would form the Currency Pair).

Principal Protected Deposit (PPD)

This is a lower risk deposit, where the potential return on your deposit is affected by exchange rate fluctuations. For example:

1. If the exchange rate between your currency pair fluctuates slightly, you will enjoy a potentially higher return on your deposit.



2. If the exchange rate between your currency pair fluctuates widely, you will still enjoy the guaranteed principal.

Return is calculated based on a pre-determined interest rate. You'll gain your anticipated return if the market performs according to your expectation.

Illustration - Principal Protected Deposit (PPD)

High Yield Deposit (HYD)

For High Yield Deposit, the bank agrees on an Initial Exchange Rate between your Deposit and Linked Currencies and fixes an interest rate for the return of your deposit principal. At maturity, you will be repaid according to the following conditions:

1. If the Linked Currency has remained unchanged or strengthened in value against the Deposit Currency, you will receive the principal plus the interest return at agreed interest rate in the Deposit Currency, which potentially could be much higher than the return on an ordinary time deposit.



2. If the Linked Currency has weakened in value against the Deposit Currency, your principal plus interest will be paid in the Linked Currency converted at Initial Exchange Rate.

Illustration - High Yield Deposit (HYD)

Wide Range of Currency Selections and Deposit Tenors

We feature a wide range of major currencies including HKD, USD, EUR, JPY, AUD, GBP, CAD, NZD and CHF. A variety of deposit tenors are also available to bring you maximum financial flexibility.

Gain Potentially Higher Return With More Flexibility

1. When the exchange market is relatively stable or matches your expectations, the FX Linked Deposit offers potentially higher return.



2. If you have personal or business activities which use a foreign currency, such as children studying abroad or business interests overseas, the High Yield Deposit could offer you more flexibility in your investment as well as your financial management.

For enquiries, please call our Bank By Phone at 0800 555 or visit our branches.

Whenever applicable, the guaranteed principal balance of your Principal Protected Deposits will be used to calculate your account maintenance balance.

The return on FX Linked Deposits is limited to the nominal interest payable, which will be dependent, to at least some extent, on movements in some specified currency exchange rate. Whilst the possible return may be higher than conventional time deposits, it is normally associated with higher risks. When the fluctuation of the currency exchange rates differs from what the Customer expected, the Customer may have to bear the consequential loss. If a Deposit is approved by the Bank to be withdrawn before its maturity, the Customer may also need to bear the costs involved. The relative losses and costs may reduce the return and the principal amount of the Deposit which the Customer may get back.