Premium Deposit

Important Note: Premium Deposit is a structured product involving derivatives. The investment decision is yours but you should not purchase such product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.

You need a good co-pilot when you set out for the foreign exchange markets. So, to make your journey easier and, with the goal of providing you with higher interest income, we established Premium Deposit. It lets you set the rate to meet your goal.

What can Premium Deposit do for you?

• provides potentially higher interest income than normal time deposits
• provides chances for you to buy foreign currencies at lower rates^#

# Lower rate is compared with the prevailing market rate at the date when the Premium Deposit is set up.

How does it work for you?

On the deposit set up date, you select:

• a deposit currency, and
• an alternate currency, and
• a deposit tenure. The conversion rate is based on your selections to come up with an agreed interest rate

On the fixing date^*, Standard Chartered will compare the conversion rate with the relevant market rate to determine whether the principal and interest will be repaid in the deposit currency or your alternate currency.

* Fixing date will be indicated on the deposit confirmation.

What options can you enjoy with Premium Deposit?

You can choose from 9 currencies - AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD and USD as your deposit or alternate currency and set the tenure according to your needs. The minimum deposit amount is just USD10,000 or its equivalent.

Comparison between Premium Deposit and normal time deposit

Note: The rates shown in the above example are quoted from 16 December 2010.
The above is for illustration only. In the worst scenario, you may lose all the investments.

Return and Risk Analysis of Premium Deposit

With reference to the example on the above of USD200,000 using AUD as the alternate currency, on fixing date:

^ Fixing rate refers to the prevailing market rate as quoted by the Bank on the fixing date.

Note: The examples/scenarios shown are for illustration only and shall not constitute any representation or guarantee by the Bank in respect of any possible gains or losses.

Risk Disclosure Statement:

• Investment involves risks. The worst case will result in loss of your entire investment.
• Principal Loss Risk / Currency Risk - This product is not principal-protected and the return of which will be dependent on movements in some specified currency exchange rates which are affected by a wide range of factors and may rise or fall rapidly. 
• Liquidity Risk / Early Withdrawal Risk / Cancellation Risk - Any cancellation or withdrawal prior to maturity is subject to the consent of the Bank. With these risks, investors may incur significant costs or losses.

Not Protected under Deposit Protection Scheme
Premium Deposit is NOT an alternative to ordinary saving or time deposit, and is NOT a protected deposit and NOT being protected under the Deposit Protection Scheme in Hong Kong.

Note: This webpage does not constitute any offer, invitation or recommendation to any person to enter into any transaction described therein or any similar transaction, nor does it constitute any prediction of likely future price movements.  All figures appearing are for illustration purposes only. Investor(s) should not make investment decision based on this webpage alone.  This webpage has not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong.

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