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Prestige "Range Accrual" FX Linked Structured Deposit
How it works
- Deposit is linked to the performance of your chosen currency pair
- Deposit pays out an enhanced interest payment for the number of banking days the exchange rate of the linked currency pair remains within a predetermined range. To remain within the range, the exchange rate must not trade below the lower boundary and not exceed the upper boundary (i.e. inclusive of the boundries)
- At maturity, the original deposit is returned along with daily accrued interest (Best and Mid Case) or with zero/minimum interest payment (Worst Case)
Linked Currency – A currency different to your deposit currency on which you are comfortable to take a view on, based on how it will perform against your deposit currency.
| Deposit amount: | USD100,000 |
| Linked currency: | EUR/USD |
| Customer view: | EUR/USD will stay within the predetermined range of 1.4550* to 1.4650* (excluding the boundaries) during the 1 month period |
| Deposit period: | 1 month (19 Banking days) |
| Spot rate: | 1.4525 (1 EUR = 1.4525 USD) |
| Preset Range: | 1.4550* to 1.4650* |
| Enhanced interest rate for the number of days the exchange rate remains within the preset range during the whole tenure of the observation period: | 4.00% p.a. |
| Minimum interest rate on trade date if the exchange rate trades outside the range at any time during the observation period: | 0.05% p.a. |
| Fixing date: | 2 Business days before the maturity date. |
| Observation period: | From and including the Trade Time on the Trade Date up to and including 10.00am New York time on Fixing End Date. (being the period of time the exchange rate is measured against the preset range). |
| Upon maturity customer receives: | 100% of principal and enhanced interest of 4.00%pa for the number of days the exchange rate trades within the preset range (excluding the boundaries) during the investment tenure and a minimum interest of 0.05% per annum for the number of days the exchange rate trades outside the preset range during the investment tenure. |
Example
Let’s consider three possible scenarios (out of many)
Please note that the spot rate, range, minimum and maximum interest rates, and the number of banking days used for the above example are only assumptions for indicative purposes. You will not receive an interest higher than the maximum interest rate.
Need more information?
For further information, please talk to your Relationship Manager, call our Customer Service Centre on +94 11 4 4722 72 or stop by at your nearest
Branch. You could also contact us via e-mail wealthmanagementdeskcbh@hsbc.com.lk.
