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CPI - Interest Rate Range Accrual

Capital Protected Investment with interest income linked to interest rate reference index

Important Risk Warning 

  • Structured Investment Deposit is a complex product and investors should exercise caution in relation to the product. This is a structured investment product involving derivatives. The investment decision is yours but you should not invest in Structured Investment Deposit 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.
  • Investors should not make investment decision based on this marketing material alone.
  • Investment involves risk and past performance is not indicative of future performance.
  • The price of structured products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling structured products.
  • This is a structured investment product, which is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.

View detailed risk disclosure. Please also refer to the offering documents for further details including risk factors.

Structured Products Offer

  • During promotional period*, new Structured Products customers^ can enjoy the following:

- enjoy HKD1,250 cash rebate for every subscription of any Equity Linked Investment or any Private Placement Note# with amount HKD500,000 or equivalent in other currencies;

- enjoy HKD160 cash rebate for every subscription of any Capital Protected Investment Deposit or any Deposit Plus with amount of HKD200,000 or equivalent in other currencies.

  • There is NO CAP to the cash rebate earned during promotional period.

Note:

* Promotional period is from now to 30 June 2022

^ No holding or transactions of Structured Products between 1 October 2021 and 31 March 2022

# Private Placement Note is only eligible to HSBC Jade Professional Investors

Invest CPI -Interest Rate Range Accrual

A capital protected investment product1 which offers you the yield enhancement opportunity to increase your return while meeting your need for foreign currencies.

Features and benefits:

If you are looking for

  • Simpler and less risky investment
  • 100% protection1 of your capital at maturity while you do not mind to lock up your structured investment deposit for a certain period (e.g. from 1 to 3 years)
  • Potential to earn enhanced returns based on the performance of the Interest Rate Reference Index (e.g. HIBOR, LIBOR) only if held to maturity
  • Higher accrual in rate for interest payment if Interest Rate Reference Index stays at or within the accrual range
  • Accrual out rate for interest payment if Interest Rate Reference Index fixes outside the accrual range

Capital Protected Investment Deposit - Interest Rate Range Accrual may be your choice

Product risk level: Low

  • Minimal chance of losing a significant portion of your capital over the term of the investment (although this is not guaranteed).Expected to demonstrate minimal price fluctuations over short periods of time.

1This product is designed to return your original capital at maturity, however, if the Bank becomes insolvent or default on its obligations under this product, you could suffer a total loss of your deposit amount, please refer to "Credit risk of the Bank" in the offering document of Capital Protected Investment Deposit for details.

Why Interest Rate Range Accrual?

Satisfy your needs

Meet your foreign currency needs such as paying children’s tuition fees, buying a home aboard, or meet your future retirement needs

Capture wealth growth

Offer yield enhancement opportunity to increase your interest

Enhanced potential returns

Offer chance to earn a higher return with higher accrual in rate for interest payment if Interest Rate Reference Index stays at or within the accrual range

How to invest/get started with HSBC

How does Interest Rate Range Accrual work?

How does Interest Rate Range Accrual work?

  • Place a structured deposit using your preferred currency e.g. CNY
  • Higher accrual in rate for interest payment if Interest Rate Reference Index stays at or within the accrual range
  • Accrual out rate for interest payment if Interest Rate Reference Index fixes outside the accrual range
  • At maturity, receive 100% of principal1

1This product is designed to return your original capital at maturity, however, if the Bank becomes insolvent or default on its obligations under this product, you could suffer a total loss of your deposit amount, please refer to "Credit risk of the Bank" in the offering document of Capital Protected Investment Deposit for details.

Click here to view Different Payoff Scenarios

Manage your investments online with HSBC

Set up Structured Investment Deposits through HSBC personal Internet Banking

  • 24-hour round-the-clock online service to stay up to date with foreign currency market
  • Real time market data

How much does it cost?

In general, there are no additional charges on investing Structured Products, all operational, administrative and hedging costs, etc have already been contained and subsumed within the calculation of the return and/or other variables of the Product.

Risk disclosure

  • Not a time deposit - Interest Rate Range Accrual 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 - Interest Rate Range Accrual is embedded with interest rate option(s). Option transactions involve risks. If the Interest Rate Reference Index stays outside of the Accrual Range throughout the whole deposit period, you could earn no interest return.
  • Limited potential gain - The maximum potential gain is limited to the interest on the deposit calculated based on the Accrual In Rate.
  • Market risk - The interest return of the Interest Rate Range Accrual will depend upon the Interest Rate Reference Index during the deposit period. Interest rate movements can be unexpected, sudden and drastic, and can be affected by complex political and economic factors. You could earn no interest return if the Interest Rate Reference Index stays outside the accrual range throughout the deposit period. You must be prepared to take the risk of earning a very low return or even no return on the money invested.
  • Liquidity risk - Interest Rate Range Accrual is designed to be held until maturity. You should not use it as a short term investment vehicle. You do not have a right to request early termination of this product before maturity. Under special circumstances, the Bank has the right to accept your early redemption request at its sole discretion and on a case by case basis. The Bank will provide an indication of the redemption price upon such request. Your return upon such early redemption will likely be lower than that if the deposit were held until maturity and may be negative.
  • Credit risk of the Bank - Interest Rate Range Accrual 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 is not in 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.
  • Risk of early termination by the Bank - The Bank shall have the discretion to uplift a Deposit or any part thereof prior to the Maturity Date (subject to the deduction of such break costs or the addition of such proportion of the return or redemption amount, which may result in a figure less than the original principal amount of the Deposit) if it determines, in its sole discretion, that this is necessary or appropriate to protect any right of the Bank to combine accounts or set-off, or any security interest, or to protect the Customer's interests.
  • Risks relating to RMB - You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (for example, the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product when you convert RMB into your home currency. The value of your RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your RMB deposit to other currencies at an exchange rate that is less favourable than that in which you made your original conversion to RMB, you may suffer loss in principal. This product (if denominated in RMB) will be denominated and settled in RMB deliverable in Hong Kong, which is different from that of RMB deliverable in Mainland China.

Risks 

Related products 

Eligibility 

Additional information 

Disclaimer 

  • The information shown in this website is neither a recommendation, an offer, nor a solicitation for any investment product or service. Investment involves risk. You should carefully consider whether any investment product or service mentioned herein is appropriate for you in view of your personal circumstances. Past performance is no guide to future performance. Investors should refer to the individual product explanatory memorandum or offering document for further details and risks involved. The price of investment products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling investment products.
  • Structured Investment Deposit is not regulated by the Securities and Futures Commission (the 'SFC').  The offering documents of Structured Investment Deposit have not been reviewed by the SFC or any regulatory authority in Hong Kong.  You should exercise caution when buying any Structured Investment Deposit.