Currency-Linked Premium Deposit
Dah Sing Bank "Currency-Linked Premium Deposit" integrates the benefits of a normal fixed deposit and foreign currency investment, which offers you the chance to earn an interest return substantially higher than a normal fixed deposit.

Investment privileges: Enjoy up to HK$200 cash coupon for every HK$2,000,000 or equivalent subscription.
Characteristics of "Currency-Linked Premium Deposit"
  • Allows you to enjoy a higher interest income than normal fixed deposit
  • Principal and interest will be repaid either in "Deposit Currency" or your chosen "Alternate Currency" upon maturity, depending on the movement of the foreign exchange market
How does "Currency-Linked Premium Deposit" work
  1. First, you need to choose a "Deposit Currency" and an "Alternate Currency" as your currency pair according to your needs.
  2. You deposit the principal in a "Deposit Currency" with a pre-determined premium interest rate.
  3. You choose a "Conversion Rate" between the "Deposit Currency" and the "Alternate Currency".
  4. On fixing date, we will compare the "Conversion Rate" with the market exchange rate ("Fixing Rate") to determine whether the principal and interest will be repaid in the "Deposit Currency" or "Alternate Currency".
  5. If the repayment is in "Alternate Currency", the original amount of principal and interest will be converted into the "Alternate Currency" at the "Conversion Rate".
Remark :
  1. Fixing date will be listed in the confirmation
  2. Fixing Rate is the relevant exchange rate set on the fixing date and is subject to the decision of the bank.
Potential return analysis of "Currency-Linked Premium Deposit" and its comparison with the return of normal fixed deposit
Principal in "Deposit Currency"
1 month
"Alternate Currency"
"Currency-Linked Premium Deposit" Interest Rate
5.77% p.a.*
"Conversion Rate"
Normal USD Fixed Deposit Interest Rate
2.35% p.a.*
*The rate was quoted on 20 February, 2008 for reference only.

Scenario of Foreign Exchange Market on Fixing Date
EUR strengthens against USD
EUR weakens against USD
Return of normal USD fixed deposit
Fixing Rate on Fixing Date (compared with "Conversion Rate")
1.49 (higher than "Conversion Rate")
1.46 (lower than "Conversion Rate)
Not Applicable
Repayment Currency
USD "Deposit Currency"
EUR "Alternate Currency"
Repayment Amount
USD50,000 x
(1 + 5.77% x 30/360)
= USD50,240.42
Gain: USD240.42
USD50,000 x
(1 + 5.77% x 30/360)
= USD50,240.42
Repay in EUR : USD50,240.42/1.47
= EUR34,177.16

USD50,000 x
(1 + 2.35% x 30/360) = USD50,097.92
Gain: USD97.92

If convert to USD at the prevailing exchange rate, customer will receive :
EUR34,177.16 x 1.46
= USD49,898.65
Loss: USD101.35
Remark : The example shown above is for reference only and shall not constitute any representation or warranty by the Bank in respect of any possible gain or loss. Please refer to the related risk disclosure statement for details.
Return under different market situations will vary as follows:
Scenario of Foreign Exchange Market on Fixing Date
Fixing Rate on Fixing Date
Repayment Amount on Maturity Date
Repayment Amount converted into USD
Gain/Loss (annualized rate)
EUR strengthens against USD
Not Applicable
Gain USD240.42 (+5.77%)
EUR remains the same against USD
Not Applicable
Gain USD240.42 (+5.77%)
EUR weakens against USD
Gain USD103.72 (+2.49%)
EUR weakens significantly against USD
Loss USD272.24
Remark : The above-mentioned scenarios and figures are for illustration purpose and for reference only.
Enjoy the flexibility of "Currency-Linked Premium Deposit"
  • 9 different currencies available, including EUR, AUD, NZD, USD, JPY, CAD, GBP, CHF and HKD
  • In addition to the currency combinations with USD or HKD. Investment combinations including AUD/NZD, AUD/JPY and EUR/JPY are now available to fit your unique need
  • Minimum deposit amount as low as USD5,000 or its equivalent
  • Flexible deposit periods - 1 week, 2 weeks , 1 month, 2 months, 3 months and 6 months.
  • Customers can choose different ˇ§Conversion Rateˇ¨
Currency-Linked Premium Deposit Best Fits those who:
  • Desire a higher return of foreign currency investment
  • Hold a currency which is expected to be relatively stable in the market
  • Are willing to hold either the "Deposit Currency" or "Alternate Currency", e.g. you may need the currencies for emigration, business or your children's study overseas.
Enjoy the Flexibility of "Currency-Linked Premium Deposit"
Act now to grasp the chance for higher potential returns! Visit any Dah Sing Bank branches to check out more about "Currency-Linked Premium Deposit".
* The annualized interest rate (28%) is not guaranteed and is for reference only. It is quoted as of 17 June 2008, with reference to the NZD/USD interest rate and the relevant deposit tenor, deposit amount and the related conversion rate. The actual annualized interest rate received by customers is subject to the selected currency pairs, deposit tenor and amount, the set conversion rate and the market conditions prevailing at the relevant fixing date. Please contact our staff for the applicable rates.

Currency-Linked Premium Deposit" is not the same as nor should it be treated as a substitute for normal time deposits. Investment involves risks. Investors will be subject to the risk of the fluctuation of the foreign exchange market. Investors should seek professional advice and refer to the offering documents of respective products where necessary to well understand the product features and potential risk involved before making investment decisions.

Interest on Deposit is calculated based on the nominal amount of the deposit currency. As the Deposit and its interest will be paid in the Deposit Currency or the Linked Currency, whichever has depreciated against the other, the customer will bear the cost involved due to exchange depreciation.

For more information, please call 2828 8001