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DUAL CURRENCY DEPOSITS
Earn high interest with this currency-related
investment
- Earn a higher rate of interest than on conventional
fixed term deposits
- The potential to buy another currency at a better exchange
rate than today
- Choice of term - one week to a year
- Choice of currency pair - including sterling, US dollars,
euro, Japanese yen, Swiss francs and Australian dollars
(other options also considered)
- A minimum deposit of US$200,000 (or equivalent)
This is how it works
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At Inception
- Deposit - You choose the initial currency.
And how much you want to deposit. e.g.
US$200,000
- Term - You make your deposit for an agreed
fixed period. e.g. 1 month
- Conversion Currency - At the same time,
you choose your alternative currency - the currency
that the Bank could repay you in. e.g.
Sterling
- Target Conversion Rate (TCR) - Depending
on your requirements you select a rate that you
would like your deposit currency to be converted
at. If you would prefer to stay in your deposit
currency you select an exchange rate that you believe
your deposit currency will not strengthen to. e.g.
$1.6000
- Interest rate - The enhanced interest
rate you earn will depend on your TCR. The closer
the TCR is to the current spot rate the higher the
interest rate will be. e.g.
7.00%
At Maturity
- Scenario 1 - Your deposit and interest
will be repaid in the deposit currency (US dollars)
if the spot exchange rate is above the TCR of $1.6000.
- Scenario 2 - Your deposit and interest
will be repaid in the alternative currency (Sterling)
if the spot exchange rate is equal or below the
TCR of $1.6000.
The above example
uses a spot exchange rate of US$1.6200/£1.
Whatever happens at conversion
you will always receive interest at the agreed enhanced
rate.
Further details
For more information, please call your Client Relationship
Manager. Alternatively please e-mail your enquiry using our e-mail form.
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