DBS IR-SID Interest Rate Linked Structured Investment Deposits
Hong Kong Fixed Deposits blogspot.com brings you DBS (Hong Kong) IR-SID or Interest Rate Linked Structured Investment Deposits.
In addition to traditional time deposits, Hong Kong DBS IR-SID Interest Rate Linked Structured Investment Deposits provides Fixed Rate IR-SID where 100% principal amount will be received upon redemption on the Deposit Maturity Date periodically to help enhance returns.
DBS IR-SID Interest Rate Linked Structured Investment Deposits is:
* 100% principal amount will be received upon redemption on the Deposit Maturity Date
* Protected by the Deposit Protection Scheme in Hong Kong
* Guaranteed by the Hong Kong SAR Government's Exchange Fund until the end of 2010
* Fixed interest payment
* Higher potential return than regular time deposit
* Deposit tenor is generally from 6 months to 3 years
* The Bank has the right to redeem the SID for full Principal Amount
DBS IR-SID Interest Rate Linked Structured Investment Deposits illustration:
2-year and 3-month HKD Callable Fixed Rate Structured Investment Deposit *
# Deposit Amount = HKD100,000
# Deposit Tenor = 2 Year and 3 Month
# Interest Payment Period = Quarterly
# 1st - 2nd Interest Period = 1.5% p.a.
# 3rd - 4th Interest Period = 1.6% p.a.
# 5th - 6th Interest Period = 1.8% p.a.
# 7th - 9th Interest Period = 2.1% p.a.
# Optional Early Redemption Date by Bank on any Interest Payment Date
Total Average Interest Return of DBS IR-SID Interest Rate Linked Structured Investment Deposits as high as 1.8% p.a#
* DBS IR-SID Interest Rate Linked Structured Investment Deposits is not authorized by the Securities and Futures Commission.
The above is for reference only and does not constitute any offer or solicitation to subscribe. It is not indicative of the future or likely performance.
# Based on simple interest calculation. The return is the average annual interest rate for the "2-Year and 3-Month HKD Callable Fixed Rate Structured Investment Deposit (SID)" with Deposit Value Date on 13 March 2009. The return is calculated with the assumption that the Bank does not redeem the DBS IR-SID Interest Rate Linked Structured Investment Deposits before maturity and is for reference only.
For details of offer (such as annual rate and conditions), visit any DBS Hong Kong branches.
DBS IR-SID Interest Rate Linked Structured Investment Deposits is a structured product involving derivatives. The investment decision is yours but you should not invest in the product unless the intermediary who sells it to you has explained to you that the relevant product is suitable for you having regard to your financial situation, investment experience and investment objectives.
Key Risks of DBS IR-SID Interest Rate Linked Structured Investment Deposits :
1. This product should not be treated as a proxy or a substitute for a standard time deposit.
2. Liquidity Risk - Early withdrawal is NOT allowed. Customers should intend to hold the product to maturity.
3. The SID may be early redeemed by the Bank. If this happens, the customers will have to seek reinvestment opportunities. The returns from such reinvestment may be less than the returns from the SID had they not been redeemed early.
4. Please refer to respective Term Sheet for details of risks.
Risk Disclosure Statements:
The above information is for reference only and does not constitute any offer or solicitation or recommendation to enter into any transaction. The Bank is not acting as your adviser or in a fiduciary capacity and accepts no liability whatsoever with respect to the use of above contents.
Before entering into any transaction, you should take steps to ensure that you understand the transaction and have made an independent assessment of the appropriateness of the transaction in the light of your own objectives and circumstances.
You should also consider making such independent investigations as you consider necessary or appropriate for such purposes. The Bank does not make any representation or warranty as to the outcome of any investment in connection with the information above.
