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Structured Products
Deposit Plus
- Deposit Plus is a structured investment product involving derivatives. The investment decision is yours but you should not invest in Deposit Plus unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
- This is a structured investment product, which is NOT protected by the Deposit Protection Scheme in Hong Kong. This product is NOT principal protected.
Additional risks are disclosed in the section of "Risk disclosure" below. Please refer to it for details.
In Hong Kong, many people like to invest in foreign currencies to capture potential gains from price movement or serve their currency needs such as for children's overseas education or travel, etc. Other than buying the foreign currencies directly, Deposit Plus may be another choice for you.
Deposit Plus is a FX-linked product which offers you the yield enhancement opportunity to increase your interest above that of normal time deposits while meeting your need for foreign currencies.
- A minimum deposit amount of HK$50,000 (or its equivalent in other currencies, subject to the minimum deposit amount of the respective currency)
- Choose your preferred currency pair from a variety of 10 currencies, one of which must be either HKD or USD if you subscribe via HSBC Personal Internet Banking or Mobile Banking
Example
Deposit Plus offers you the following benefits
^ May suffer loss if the deposit is converted to the linked currency
Flexible choices to meet your needs
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Available in branches |
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Available online |
NEXT STEPS...
- HSBC Internet Banking Users
Logon to set up Deposit Plus 
- Not yet a HSBC Internet Banking User
for HSBC Internet Banking 
- Need help?
Call (852) 2233 3733
Product Risk level: Low to Medium
The price volatility of the product is low to medium. Some market monitoring and management may be required to control the relevant risks of the product. The product may be suitable for investors who are happy to accept low-to-medium level of investment risk.
- Not a time deposit - Deposit Plus is NOT equivalent to, nor should it be treated as a substitute for, time deposit. It is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.
- Derivatives risk - Deposit Plus is embedded with FX option(s). Option transactions involve risks, especially when selling an option. Although the premium received from selling an option is fixed, you may sustain a loss well in excess of such premium amount, and your loss could be substantial.
- Limited potential gain - The maximum potential gain is limited to the interest on the deposit.
- Maximum potential loss - Deposit Plus is not principal protected. You must be prepared to incur loss as a result of depreciation in the value of the currency paid (if the deposit is converted to the linked currency at maturity). Such loss may offset the interest earned on the deposit and may even result in losses in the principal amount of the deposit.
- Not the same as buying the linked currency - Investing in Deposit Plus is not the same as buying the linked currency directly.
- Market risk - The net return of Deposit Plus will depend upon the exchange rate of the deposit currency against the linked currency prevailing at the deposit fixing time on the deposit fixing date. Movements in exchange rates can be unpredictable, sudden and drastic, and affected by complex political and economic factors.
- Liquidity risk - Deposit Plus is designed to be held untill maturity. You do not have a right to request early termination of this product before maturity.
- Credit risk of the Bank - Deposit Plus is not secured by any collateral. When you invest in this product, you will be relying on the Bank's creditworthiness. If the Bank becomes insolvent or defaults on its obligations under this product, you can only claim as an unsecured creditor of the Bank. In the worst case, you could suffer a total loss of your deposit amount.
- Currency risk - If the deposit currency and/or linked currency is not your home currency, and you choose to convert it back to your home currency upon maturity, you may make a gain or loss due to exchange rate fluctuations.
