Premium Deposit <Structured Deposit with FX Option>
Earn higher interest than with a regular time deposit by taking currency conversion risk. You can transact in real time online or by phone 24 hours a day.*
* Excluding certain time periods, Japanese national holidays and December 31 through January 3.
Three advantages of transactions at PRESTIA Online
- 1. Add-on interest rates regardless of the deposit amount. (Base interest rate x 5% add-on) *1
- 2. Deposit term includes 1-week
- 3. Real time transaction in 24 hours a day *2
- *1 Via PRESTIA Online, You can earn base interest rate x 5% higher interest rate than the regular Premium Deposit in the same conditions.
Please make sure to check the applicable interest rate in the confirmation screen.
e.g.) If the base interest rate is 4.00% (pre-tax annual interest rate), the add-on interest rate shall be 4.20% (pre-tax annual interest rate)
<Calculation>4.00+4.00x0.05 = 4.20% (pre-tax annual interest rate)
- *2 You can make transactions anytime from Monday morning at 8:00 A.M. until Saturday morning at 5:00 A.M. in principle. Excluding certain time periods, Japanese national holidays and December 31 through January 3.
You can select from three types depending on your needs.
There are different types of Premium Deposits corresponding to the currency you deposit. "Deposit in Japanese Yen" starts from Yen funds; "Deposit in Foreign Currency" and "Cross Currency Type" start from foreign currency funds.
Premium Deposit (Deposit in Japanese yen)
With your surplus funds in Yen, you may be thinking...
- "I want to buy a foreign currency if the Yen becomes stronger."
- "I wish to make effective use of my available funds while waiting for the Yen to strengthen."
If so, choose "Deposit in Japanese Yen".
Premium Deposit (Deposit in Foreign Currency)
With your surplus funds in a foreign currency, you may be thinking...
- "I want to convert my funds in a foreign currency back into Yen if the Yen becomes weaker."
- "I wish to make effective use of my available funds while waiting for the Yen to weaken."
If so, choose "Deposit in Foreign Currency".
Premium Deposit (Cross Currency Type)
You want to invest your surplus foreign currency funds in a different foreign currency without converting them back into Yen, and you may be thinking...
- "I want to convert my foreign currency funds into another foreign currency at a better exchange rate than a current rate."
- "I wish to make effective use of my available funds while waiting for my target exchange rate."
If so, choose "Cross Currency Type".
Why do Premium Deposits offer better interest rates than regular time deposits?
In addition to the interest rate of a regular time deposit, Premium Deposit interest rates include a part of "premium" that is obtained by selling currency options in the applicable currencies. This premium can vary greatly depending on the combination of conditions you choose, and on market conditions. In addition, the higher the chances are of a currency conversion occurring on the maturity date, the higher the premium will be. If you want a high return, the associated risk will also be higher, so please make sure that you understand the nature of the product and its associated risks before transacting.
Disclaimer for transaction
This product is a structured deposit whereby the exchange rate at maturity determines the currency in which you receive your deposit principal.
Premium Deposit is not suitable for customers to whom the following conditions apply;
- Customers to whom currency exchange is an absolute priority.
- Customers who do not wish to absorb a loss in their invested principal.
- Customers who do not wish to be exposed to the risk of foreign currency exchange rate fluctuations.
Please read the guidelines below before you apply for this product.
This product entails some risks such as loss of principal in the original deposit currency and/or Japanese yen. Please read the "Information Memorandum and Pre-Contract Document" carefully, and make sure you fully understand the product before making the transaction.
Premium Deposit (Structured Deposit with FX Option) Information Memorandum and Pre-Contract Document
- Risk of Loss of Principal
- If the conversion to Counter Currency happens, the equivalent value of the maturity amount including interest in the deposited currency and/or Yen may become less than the initial deposit value due to FX fluctuation. Please read carefully, and understand, the precautions for each type of investment for information about the risk of loss of principal for "Deposit in Yen", "Deposit in Foreign Currency" and "Cross Currency Type".
- Foreign exchange commission: The exchange rate at which yen is converted into foreign currency (TTS rate) and vice-versa (TTB rate) includes a foreign exchange commission set by SMBC Trust Bank. (For US dollars, the foreign exchange commission is 1 yen per dollar when converting one way (i.e., from yen to dollar or dollar to yen) and 2 yen per dollar if converting into and subsequently out of yen or dollar.)
- Foreign currency cash handling charge: A foreign currency cash handling is charged on each deposit or withdrawal of cash in a foreign currency (2 yen per US dollar, and 3 yen per Euro).
- Because other commissions for fund transfer etc. differ according to conditions in transactions, we can't show information about them beforehand.
- Please inquire at a branch or via PRESTIA Phone Banking or see the Service Fee List for more information about each commission.
- Other considerations
- Withdrawals are not allowed before maturity.
- Deposit Insurance
[Deposit in Yen]: Deposit is covered by Deposit Insurance. In the case where the principal is converted to foreign currency, it is not covered by Deposit Insurance after the principal is deposited into Foreign Currency Savings Account. When it is covered, only the principal up to 10 million yen totaling all deposits you have with us that are in the scope of Deposit Insurance and interest until the insurable contingency are covered by Deposit Insurance. For the interest of this product, Deposit Insurance will cover up to the amount equivalent to the Yen time deposit interest for the same tenor and amount, the rate for which is separately stipulated. Any excess interest amount will not be covered by Deposit Insurance.
[Deposit in Foreign Currency]: Deposit is not covered by Deposit Insurance. In the case where the principal is converted to Yen, it is covered by Deposit Insurance after the principal is deposited into Yen Savings Account.
[Cross Currency Type]: Deposits are not covered by Deposit Insurance during deposit or after maturity.
- In principle, interest is subject to a 20.315% withholding tax (National tax 15.315% and Local tax 5%) for individual customers. Foreign exchange gains are treated as miscellaneous income under the Japanese tax laws. Comprehensive income taxation applies to corporate customers. The tax rate etc. may change in the future due to reasons such as revision of tax laws.
- After the maturity date, the principal and interest as of the maturity date shall be credited into the PRESTIA MultiMoney Savings Account (in the received currency) on the business day following the maturity date and the savings interest rate will apply to the deposit on and after the maturity date.
- Interest and exchange rates change according to market conditions. Please be sure to contact a branch or access PRESTIA Online etc. for the most up-to-date information.
- In case of US residents, we may not be able to accept your application.
- Please read the "Information Memorandum and Pre-Contract Document" carefully and make sure you have a full understanding of the product before making a transaction. To obtain this document, inquire at a branch or via PRESTIA Phone Banking. This document is also available at PRESTIA Online.
Company Name：SMBC Trust Bank Ltd.
- At SMBC Trust Bank PRESTIA, we use profiling (a series of questions related to asset management) to understand the amount of risk you are able to accept. The answers received in profiling, and the risk acceptable to the customer, are expressed numerically as a "customer risk tolerance (risk score)". Please be aware that investment in a product is not possible if the customer risk score is below the product risk level.
- SMBC Trust Bank PRESTIA charges a monthly account maintenance fee of 2,000 yen (excluding tax) to your account on the first business day of each month. Please note, however, that no such fee will be charged for the month in question if your Total Average Monthly Relationship Balance or other conditions satisfy specific requirements.
- Products and services featured here may not be purchasable or able to be provided to customers for various reasons determined by SMBC Trust Bank. We kindly request your understanding in advance.
Customers can use the following methods to check the strike prices that can be set, applicable interest rates, etc.