Term deposits

Combination of deposit and investment

Structured term deposits combine 2 products: a term deposit and a financial instrument, such as an option.

Through the financial instrument, you have the chance of higher returns, provided an investment contract is fulfilled. This could depend on the progress of interest rates, financial indices, foreign exchange rates, etc.

However, when you participate in a structured term deposit, you must have been fully informed of the:

• Investment contract that needs to be fulfilled, so the additional return is triggered.
  
• Extent to which you are exposed to risk and whether your investment principal is protected.

Find the right term deposit for you

Before you choose a term deposit, ask yourself:

• What term am I after – How long do you want to keep your money locked up? Is there a chance you’ll need it earlier? Will the interest rate be higher if you lock up your money for longer?
• When will I collect the interest – Will you collect the interest at the maturity of the term deposit or at regular intervals?  
• What if I need my principal earlier – Is there an up-front penalty or will you just lose the interest for the remaining term?