Dual Currency Deposit

• It offers you a chance to enjoy potentially higher returns as opposed to the traditional local or foreign currency savings or time deposits
• We offer you an option of 4 major currencies to choose from (for both deposits and linked currencies).
• Investment tenors ranges from 1 to 3 months.
• Committed interest payment at maturity irrespective of whether the maturity proceeds are paid in the deposit currency or linked currency.
• Enjoy maximum financial flexibility with a Sri Lankan Rupee credit facility of up to 85% of the deposit value.

Linked currency is the currency that you pair your deposit currency with in a DCD. It should be a currency which you are comfortable to take a view on, based on how it will perform against your deposit currency.

A DCD is likely to be suitable for you if you:

• Have a high risk appetite.
• Are willing to hold either the deposit or the linked currency.
• Have an actual need to hold the linked currency and look forward to purchasing it at a more favourable exchange rate (compared to the spot rate on the trade date).
• Believe the enhanced yield justifies any potential currency depreciation.

For further information, please talk to your Relationship Manager, call our Customer Service Centre on 4 4722 72 or stop by at your nearest Branch. You could also contact us via e-mail wealthmanagementdeskcbh@hsbc.com.lk.

The net return in relation to Dual Currency Deposit depends on the market conditions prevailing at the deposit fixing time on the deposit fixing date. You must be prepared to incur losses as a result of depreciation in the value of the currency paid. Such losses may offset the interest earned on the deposit and may even result in losses in the principal amount of the deposit. If the paid currency at maturity is not your home currency, and you choose to convert it back to your home currency, you may make a gain or loss due to exchange rate fluctuations. If you have any doubt about this product, you should consult an independent professional financial adviser.

Dual Currency Deposit is a structured product involving derivatives.

Dual Currency Deposit is NOT equivalent to a time deposit.

Issuer's Risk - you rely on HSBC's creditworthiness. The product is subject to both the actual and perceived measures of the creditworthiness of the Bank and there is no assurance of protection against a default by the Bank in respect of its payment obligations.

In the worst case scenario (e.g. upon insolvency of the Bank), the investor may get nothing back and the potential maximum loss could be 100% of investment amount and no return received.