Deposit Plus

Indicative Telegraphic Transfer rates as at 17 Mar 2010 04:12 HKT

Why is Deposit Plus right for you?

You can place your deposit for as low as HKD50,000 or equivalent with Business Internet Banking.
Perfect for businesses that regularly convert funds from one currency to another and are seeking higher returns
Earn a higher interest rate than a normal Hong Kong dollar or foreign currency time deposit if you are willing to risk conversion into another currency

Features and benefits

Choose 2 currencies, one of which must be HKD or USD
Other available currencies are: Australian Dollar, Canadian Dollar, Euro, Sterling, New Zealand Dollar, Japanese Yen and Swiss Franc
Enjoy the flexibility of fixing your deposit period and conversion rate or Deposit Plus interest rate

Other services you might be interested in

Redemption Scenarios

Scenario 1 - Redemption Currency in HKD
AUD strengthens against HKD at fixing
AUD/HKD at fixing = 5.9000
Principal + Interest = HK$501,917.81
Return = HK$1,917.81
Scenario 2 - Redemption Currency in HKD
AUD remains constant against HKD at fixing
AUD/HKD at fixing = 5.8250
Principal + Interest = HK$501,917.81
Return = HK$1,917.81
Scenario 3 - Redemption Currency in AUD
AUD weakens against HKD at fixing
AUD/HKD at fixing = 5.8100
Principal + interest = A$86,166.15 (HK$501,917.81 @ 5.8250)
You will receive both the principal and interest in AUD at conversion rate of 5.8250.
Interest on principal of A$85,836.91= A$329.24

If you choose to convert AUD back into HKD, you will incur an exchange loss that will reduce or eliminate the interest yield and may even result in losses in the principal amount:
AUD/HKD spot rate on maturity date = 5.7900
Principal + Interest = HK$498,902.01 (A$86,166.15 @ 5.7900)
Return= -HK$1,097.99 (loss)

Disclaimer
The net return in relation to Deposit Plus will depend upon market conditions prevailing at the deposit fixing time on the deposit fixing date. You must be prepared to incur loss as a result of depreciation in the value of the currency paid. Such loss may offset the interest earned on the deposit and may even result in losses in the principal amount of the deposit. Investment involves risks.You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your risk appetite, investment experience, objectives, financial resources and circumstances. If you have any concerns about this product, you should consult your professional financial advisers.

Important Note

You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and circumstances.

Deposit Plus is NOT equivalent to time deposits. Deposit Plus is NOT protected deposit and is not protected by the Hong Kong Deposit Protection Scheme. The repayment of it is also not guaranteed by the Hong Kong SAR Government's Exchange Fund.

Deposit Plus t is structured product involving derivatives. The investment decision is yours but you should not invest in Structured Investment Deposits 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.

Investment involves risks. Past performance of investment products are no guide to future performance. The value of investments and the income from them can fluctuate and is not guaranteed. Investors may not get back the amount they invest.

Investment returns not denominated in home currency are exposed to exchange rate fluctuations. Rates of exchange may cause the value of investments to go up or down.

Issuer's Risk – you rely on HSBC's creditworthiness. The product is subject to both the actual and perceived measures of the credit worthiness of HSBC and there is no assurance of protection against a default by HSBC in respect of its payment obligations. In the worst case scenario (e.g. insolvency of HSBC), the investor might not be able to recover the principal and/or any interest /coupon (if any) and the potential maximum loss could be100% of investment amount and interest/coupon received.

Next steps

Updated Product Risk Rating

To keep you updated on the recent risk rating
changes of Structured Products. Click “more details”.

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