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Premium
Deposit is the combination of a time deposit and a currency option, offering you not only traditional deposit
interest, but also a chance of gaining higher returns through the
dealing of a currency option with your anticipation of the market
trend, while meeting your needs of foreign currencies. |
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Its
Benefits
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Favorable Interest Returns
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Premium Deposit offers you a chance of earning
substantially higher returns than a traditional time deposit.
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Various Choices of
Currencies
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We offer a series of selected currencies to meet your
needs, which
include HKD, USD, AUD, CAD, EUR, GBP, JPY and NZD.
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Flexible
Deposit Tenor1
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Choices
of deposit tenor include 1 week, 2 weeks and 1 month.
For deposit amount of over USD60,000 (or its equivalent), we
offer tailor-made deposit period ranging from 1 week to 6 months
to suit your investment needs.
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Low Deposit Requirement
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The minimum deposit amount for setting up a Premium
Deposit is as low as USD 5,000 (or its equivalent).
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Overdraft Facility2
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You can enjoy an overdraft facility of up to 85% of your
Premium Deposit during the deposit period for maximum financial flexibility. |
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How It Works
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It takes only a few simple
steps to set up a Premium Deposit :
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Choose a Deposit
Currency and a Linked
Currency; one of the currency must be USD or HKD
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Decide your Deposit
Amount
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Pick a Deposit
Tenor
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Based on your selections, we will provide you with a Conversion
Rate and an Interest Rate
for your chosen currency pair.
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On Maturity Date
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When your Premium Deposit matures, your principal and
interest will be paid in either the Deposit Currency or the Linked
Currency converted at the Conversion Rate, depending on the comparison
between the Fixing Rate at the fixing time on the maturity date3
and the
Conversion Rate.
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Settled in Deposit Currency
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If the Linked Currency
has strengthened or remains unchanged against the Deposit Currency, or if the Fixing Rate on the maturity
date is higher or equal to the
Conversion Rate, you will receive the principal and
the interest in the Deposit Currency. |
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Settled in Linked Currency
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If the Linked Currency
has depreciated against
the Deposit Currency, or if the Fixing Rate on the maturity date is lower
than the Conversion Rate, you will receive the
principal and the interest in the Linked Currency. |
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Examples
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The following examples
illustrate the features of Premium Deposit.
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Table 1 : Comparison between a Premium Deposit and a
traditional fixed deposit
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Premium
Deposit
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Traditional
Fixed Deposit
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Deposit
Currency
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HKD
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HKD
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Deposit
Amount
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HKD
500,000
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HKD
500,000
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Linked
Currency
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AUD
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N/A
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Deposit
Tenor
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7 days
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7 days
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Interest
Rate4
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21.51%
(p.a.)
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0.225%
(p.a.)
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Conversion
Rate4
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5.7320
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N/A
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Principal
plus Interest at Maturity
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HKD
502,062.60 (if the Fixing Rate on the maturity date is higher
or equal to the Conversion Rate) or
AUD
87,589.43 (if the Fixing Rate on the maturity date is lower
than the Conversion Rate)
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HKD
500,021.58
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Table 2 : Return Analysis5
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Fixing
Rate
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Conversion
Rate
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Return
at Maturity
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+
Net Gain /
-
Loss
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Rate
of Return
(+
/ -)
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Scenario
1
AUD
strengthens against HKD or remains unchanged
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5.7320
or
higher
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5.7320
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HKD502,062.60
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+
HKD2,062.60
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+
21.51% p.a.
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Scenario
2
AUD
depreciates against HKD
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5.7220
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5.7320
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AUD87,589.43
(equivalent
to HKD501,186.72)
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+
HKD1,186.72
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+
12.38% p.a.
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Scenario
3
AUD
depreciates against HKD
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5.7085
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5.7320
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AUD87,589.43
(equivalent to HKD500,004.26)
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+
HKD4.26
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+
0.04% p.a.
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Scenario
4
AUD
depreciates against HKD
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5.6980
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5.7320
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AUD87,589.43
(equivalent to HKD499,084.57)
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-
HKD915.43
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-
9.55% p.a.
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Act
Now
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Please visit any of our branches and set up a Premium
Deposit right away to grasp the chance of gaining higher returns.
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Customer Service Hotline
8107 0818
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1. No pre-mature uplift
is allowed.
2. Please contact our
bank staff for details.
3. Maturity date and
fixing time will be stated in the Confirmation.
4. Based on indicative
rates quoted on 21 Oct, 2004.
5. The above scenarios are
for reference only. Returns depend on the market conditions on the
maturity date.
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Risk
Disclosure Statement:
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Returns on a Premium
Deposit will depend on the market conditions prevailing at the
fixing time on the maturity date.
Investors are subject to the losses
in the principal amount of the deposit led by the fluctuation of the
linked currency. Investors should read the relevant Risk Disclosure
Statement carefully before making any investment decision.
The information provided above is for reference only, and
does not constitute any
investment recommendation.
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