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Premium Deposit

Premium Deposit

If you're looking for extra interest returns on your deposits, DBS Premium Deposit will meet your needs. Combining traditional time deposits with currency options, it offers not only deposit interest, but also an enhanced interest derived from the currency option - allowing you to capture high interest returns in the foreign exchange market.

Suitable for your various investment needs

Premium Deposit is especially suited for customers who


Wide choice of currency combinations available

We have 9 choices of currency deposits to suit your needs: HKD, USD, EUR, JPY, GBP, AUD, NZD, CAD and CHF, with more than 70 different currency combinations including different cross rate combinations that can help you capture greater yield opportunities in the foreign exchange market.

Flexible deposit periods

Our varied selection of deposit periods offers you 1 week, 2 weeks, 1 month, 2 months or 3 months deposit periods to suit your investment horizon.

Low minimum deposit requirement

The minimum deposit amount is HKD100,000 only.

No fee will be charged

No annual or maintenance fees will be charged.

How does Premium Deposit work?

When you set up your Premium Deposit, you need to decide on the deposit currency, linked currency, deposit tenor and conversion rate.

DBS Bank will set the fixing rate with reference to the foreign exchange spot rate in the inter-bank market at around 11:00 a.m. on the maturity date. The Bank will compare the fixing rate with the conversion rate to determine whether the principal and interest will be paid back in the deposit currency or linked currency.

Premium Deposit return and risk comparison


On deposit value date

Deposit Currency Hong Kong Dollar (HKD)
Deposit Amount HKD500,000
Linked Currency Australia Dollar (AUD)
Deposit Value Date 23 November 2010
Deposit Tenor 1 month
Deposit Maturity Date 23 December 2010
Spot Rate (AUD/HKD) 7.6239
Conversion Rate (AUD/HKD) 7.3898
Premium Deposit Rate (p.a.) 7%

On deposit maturity date

Scenario 1 - HKD has depreciated against AUD or remains unchanged during the deposit period, fixing rate (AUD/HKD) is higher than or equal to conversion rate

Fixing Rate (AUD/HKD) 7.4800
(i.e. higher than conversion rate 7.3898)
Payout Currency HKD
Deposit Amount HKD500,000
Interest Amount* HKD500,000 x 7% x 30/365
= HKD2,876.71
Principal and Interest on Maturity Date HKD500,000 + HKD2,876.71
= HKD502,876.71
Gain (Loss) Gain HKD2,876.71

Scenario 2 - HKD has appreciated against AUD during the deposit period, fixing rate (AUD/HKD) is lower than conversion rate

Fixing Rate (AUD/HKD) 7.3400
(i.e. lower than conversion rate 7.3898)
Payout Currency AUD
Deposit Amount HKD500,000
Interest Amount* HKD500,000 x 7% x 30/365
= HKD2,876.71
Principal and Interest on Maturity Date (HKD500,000 + HKD2,876.71) /
conversion rate 7.3898
= HKD502,876.71 / 7.3898
= AUD68,050.11
Customer can choose to retain the deposit in AUD or convert AUD into HKD at spot rate. Assuming the customer converts the AUD back to HKD at the fixing rate on the maturity date, customer will receive:
AUD68,050.11 x fixing rate 7.3400 = HKD499,487.81
Gain (Loss) Loss (HKD512.19)

* The interest amount in HKD is calculated at the relevant interest rate on the basis of the actual number of days elapsed in an interest period and a 365-day year.

Comparison with normal time deposit

Scenario 1
Scenario 2
Time Deposit
Principal Amount
Deposit Tenor
1 month
Interest Rate (p.a.)
Fixing Rate
Principal & Interest on Maturity Date
Amount in HKD at Fixing Rate
Gain (Loss)

Seize this investment opportunity

Take hold of this potentially high yield investment opportunity by choosing the deposit and linked currency pairs, deposit tenor and conversion rate that best suit your outlook on foreign exchange market trends.

Benefit from our FX expertise

No matter how close you are to the market, professional advice always adds value. At DBS, you can always arrange for an appointment to meet our Treasury Specialist to help you make informed decisions.

The illustrations shown above are for reference only. The Premium Deposit rate and normal time deposit rate are quoted as of 23 November 2010 and are not indicative of future performance. The actual annualized interest rate for customers is subject to the prevailing rates of the deposit and linked currency pairs, deposit tenor and conversion rate at the time when the Premium Deposit is set up. The applicable rates should be checked with our Relationship Manager / Officer.

Important Notice
Premium Deposit ("the Product") is a structured product involving derivatives. The investment decision is yours but you should not invest in the Product unless DBS Bank (Hong Kong) Limited has explained to you that the Product is suitable for you having regard to your financial situation, investment experience and investment objectives.

Risk disclosure:
Investment involves risks. The above information does not constitute any offer or solicitation to enter into any investment arrangement. The risk of loss in Premium Deposit can be substantial. Such loss may offset the interest earned on the deposit and may even result in losses in the principal amount of the deposit, especially where the linked currency experiences devaluation or weakens during the deposit period. Premium Deposit should not be treated as a proxy or substitute for a traditional time deposit. Customers must be prepared to risk the interest that they might otherwise have earned on money invested as deposit. You should therefore refer to relevant offering documents and our "Investment Products Consolidated Terms and Conditions" for detailed information, and carefully consider whether such product is suitable in the light of your own financial position and investment objectives. The Bank is not acting as an investment or financial adviser or in any fiduciary capacity to any Customer. Customer should obtain independent expert financial advice before any investment. Premium Deposit is NOT protected under the Deposit Protection Scheme in Hong Kong.

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