The world's local bank
You are here:
- Home
- Investments
- Investments
- Prestige 'Range' FX Linked SD
- How it works
You are not logged on.
to Internet Banking
Prestige "Range" 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 at maturity, if the exchange rate of the linked currency pair remains within the pre-set range during the whole term of the observation period of the deposit.
- At maturity, the original deposit is returned along with either an enhanced interest payment or a minimum interest payment
Example
| Deposit currency | USD 100,000 | Linked currency pair | EUR/USD |
| Customer view | EUR/USD will stay within the predetermined range of 1.4425* to 1.4625* (excluding the boundaries) during the 1 month period |
| Deposit period | 1 Month |
| Spot rate | 1.4425* |
| Preset range | 1.4425* to 1.4625* | Enhanced interest rate if the exchange rate remains within the preset range during the whole tenure of the observation period | 3.00% p.a.* |
| Minimum interest rate if the exchange rate trades outside the range at any time during the observation period | 0.05% p.a.* |
| Fixing date | two Business days before the maturity date | Observation period | From and including the Trade Time on the Trade Date up to and including 3.00pm Tokyo time on Fixing 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 3.00%pa if the exchange rate trades within the preset range (excluding the boundaries) during the investment tenure or 100% of principal and minimum interest of 0.05%pa if the exchange rate trades outside the preset range anytime during the investment tenure |
*Indicative rates only, for illustration purposes
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.
