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Steps & Channels
Information
3 Steps in investment in “Super Yield Investments”
You can make your investment anytime just by choosing the investment amount, the investment period, the linked currency and the conversion rate, then All-in rate from the “Super Yield Investment” can be determined. Generally, higher volatility of the foreign exchange market, a longer term investment, or a smaller spread between the conversion rate and spot rate, the total rate of return would be higher.
Assume an investor selects the following terms for the “Super Yield Investment”:
- Investment period: 2 weeks (2006/9/1~2006/9/15)
- Base currency: USD
- Principal Amount: USD100,000
- Linked currency: EUR
- Spot Rate: 1.2804
Note 1. The All-in rate of Super Yield Investment (annual interest rate) is the interest rate of the 2- week USD time deposit on the start date of 5.27% (p.a.) plus the option premium rate at 3.93% (p.a.).
Note 2. This is the term for the calculation of accrued interest for the base currency under international practice and custom. For GBP, HKD and SGD, one year is based on 365 days while other currencies are based on 360 days for interest calculation.
Note 3. The above examples do not include applicable taxes. In processing the investment, the Bank will comply with applicable tax code. In other words, interest from the time deposit will be subject to the withholding of applicable taxes for declaration. The premium from options is defined as capital gain from the trading of property. Investors shall declare such income for taxation purposes. The Bank is not responsible for declaring this portion of income for the clients. Where there may be changes in the applicable tax code, the Bank will comply accordingly.
Note 4. This example is explained with reference to the interest rate and exchange rate and related information is effective as of September 1, 2006 and is for reference only. This example shall not constitute any anticipation of future performance or as an offer or incentive of offer for the investors.
Channels for investment in “Super Yield Investment”
For further information on investment in Structured Deposit, please call any HSBC branches.
Super Yield Investments Related Information
Investors Disclaimers
- Super Yield Investments are a form of structured product and are different from the traditional forms of time deposit. Therefore, it is not a substitute for regular time deposits and is not inclusive in the extent the Central Deposit Insurance Corporation (CDIC). Investors shall assume the credit risk of HSBC as their own responsibility.
- Investment entails risk. Return of investment is determined by market situation within the term of investment or the expected time span. The underlying performance in such period may be positive or negative, which in turn will affect the return. The return of this product may fall lower than the return of time deposits covering the same period. Investors shall prepare to assume risk, and may not earn the same interest as investments otherwise with the same principal. Investors shall make independent judgment on participation in any of the investment programs cautiously with reference to their own capacity in assuming risks, investment experience, investment objectives, financial positions and related conditions (effect on legal, taxation and accounting aspects).
