Premium Currency Investment (PCI) is a time deposit embedded with a currency option. Customer places a deposit with the bank and selects a linked currency and tenure with a pre-determined strike rate for the placement. The bank provides the customer with a 'yield enhancement' over and above the normal Time Deposit Rate. In return, the bank has the right to convert the deposit currency into the linked currency at the predetermined strike rate with prior notification

Benefits to customers:

• Provide an opportunity to hedge foreign exchange fluctuation.
• Use existing deposit for an additional facility while the deposit continues to earn interest.
• Competitive foreign exchange rate and opportunity to obtain the beneficial advice from SME Dealer.

Documents required:

• PCI Registration Form
• Letter of Indemnity and Authority for Telephone Instruction
• Structured Deposit Customer Agreement
• Dealing Mandate
• Letter of Authorization
• PCI Investment Declaration Form
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Type of PCI :

1. PCI Regular

PCI Regular is suitable for customer who wants to convert his/ her principal amount currency on his/ her preferable rate.

Features:

• Guaranteed return of investment.
• Customer shall receive the principal and interest in either the deposit currency or the linked currency, whichever is weaker

2. PCI Max

PCI is a time deposit embedded with a currency option. Customer places a deposit with the bank and selects a linked currency and tenure with a pre-determined strike rate for the placement. The bank provides the customer with a 'yield enhancement' over and above the normal Time Deposit Rate. In return, the bank has the right to convert the deposit currency into the linked currency at the predetermined strike rate with prior notification.

Features:

• PCI Max has a 'Knock In Barrier' which mitigates the conversion risk of PCI regular.
• Option Premium Fee is paid on the maturity date.

3. PCI Turbo

PCI Turbo is suitable for SME customer who has been familiar with the product and would like to gain more from a particular currency trend. PCI Turbo has an additional 'Knock Out Barrier' which provides an opportunity to do PCI roll over before maturity date if the spot rate touches the 'Knock Out Barrier'.

Additional Features:

• Upfront payment of Option Premium Fee.
• Opportunity to gain accumulated profit, due to 'Knock Out Barrier' feature, which gives a chance to SME customer to do PCI roll over before maturity date

Risk Factor

Any banking transactions as with other banking products contain risk factors. Our Operational and Customer Service team have acquired sufficient training to execute the transactions and deliver information to the customers on our transactions and products. We also advise that prior to opening an account and conducting a banking transaction, the customers read and understand the Terms and Conditions related to the product and transaction.