With your surplus funds in Yen, you may be thinking...

  • "I want to buy a foreign currency at stronger Yen levels."
  • "I wish to make effective use of my available funds while waiting for the Yen to strengthen."

If so, choose the Premium Deposit (Deposit in Japanese Yen).

USD or AUD limited Premium Deposit [Deposit in Yen] Add-on Base interest rate x 10%
USD or AUD limited Premium Deposit [Deposit in Yen] Add-on Base interest rate x 10%

Example

Steps

STEP 1

Determine your deposit amount.

Minimum amount of 1,000,000 yen
Minimum amount of 500,000 yen*

  • *For transaction via online banking

STEP 2

Select your counter currency:

USD, EUR, GBP, AUD, NZD, CAD, CHF

STEP 3

Determine your deposit term:

1 week*, 2 weeks, 1 month, and 3 months; and other terms as determined by SMBC Trust Bank.* In principle, 1 week is available only on online banking.

STEP 4

Determine your Strike Price by setting your differential.

The Strike Price is calculated by subtracting your selected differential from the Spot Price.

STEP 5

Your interest rate is now set.

  • *Selectable differential is within the range set by SMBC Trust Bank and subject to market conditions and may change without prior notice.

For example,

  • Principal amount: ¥3 million
  • Deposit term: 1-month
  • Counter currency: US dollar
  • Differential: ¥1
  • Annual interest rate after tax: 2.000%
Deposit date Deposit term: 1-month 3:00 PM on maturity date Spot Price \90.00/USD Differential:\1 Strike Price \89.00/USD Yen depreciation 94 93 92 91 90 89 88 87 86 85 84 Yen appreciation Foreign exchange rate fluctuation Point 1 Point 2 Point 3 Principal (deposit currency) \ Received in Yen \3,000,000 Interest (deposit currency) \ Received in Yen \5,000 (after tax) \3,000,000*2.000%*1/12 month=\5,000 Principal (counter currency) $ Received in US dollars atter conversion at the Strike Price USD 33,707.87 \3,000,000/\89.00/USD=USD 33,707.87 Interest (deposit currency) \ Received in Yen \5,000(after tax) \3,000,000*2.000%*1/12 month=\5,000 currency image
  • The Spot Price equals the exchange rate determined by SMBC Trust Bank based on the exchange rate as quoted on the interbank market.
  • The Strike Price is calculated by subtracting your selected differential from the Spot Price. If the exchange rate of Yen against your selected counter currency at 3:00 P.M. on your maturity date indicates yen appreciation equal to or beyond the Strike Price, your principal will be converted into your selected foreign currency (counter currency) at your selected Strike Price when paid.
  • The differential is the rate range to be used to set your Strike Price from the Spot Price. Selectable differential is within the range set by SMBC Trust Bank and subject to market conditions and may change without prior notice.
  • Counter currency : USD, EUR, GBP, AUD, NZD, CAD, CHF

Point 1

Whether the currency conversion occurs or not depends on the spot rate at 3:00 P.M. on the maturity day. Even if the market exchange rate exceeds the strike price during the deposit period, funds will neither be exchanged for the counter currency, nor will a decision be made to exchange for the counter currency, at that time.

Point 2

When the exchange rate of Yen against the counter currency indicates Yen depreciation beyond the Strike Price, and you are to receive your principal in Yen, you lose the opportunity for a foreign exchange profit that you could have enjoyed had you made a foreign currency deposit at the time of deposit.

Point 3

  • Please note that your principal will be converted into your selected counter currency at the Strike Price preset by you at the time of deposit, not at the exchange rate prevailing on the maturity date. Since the Strike Price is usually more unfavorable than the foreign exchange rate prevailing in the market at maturity, a loss of principal may occur when you convert your received foreign currency funds back into Yen on the maturity date.
  • When you convert your received foreign currency funds back into Yen, the TTB rate specified by SMBC Trust Bank will be applied to the conversion. The TTB rate includes the foreign exchange commission prescribed by SMBC Trust Bank.
  • Please note that the foreign exchange rates and interest rates shown above are used as examples. Actual foreign exchange rates and interest rates that will be applied to your transactions will differ from these examples.
  • In principle, interest is subject to a 20.315% withholding tax (National tax 15.315% and Local tax 5%) for individual customers. Comprehensive income taxation applies to corporate customers. The tax rate etc. may change in the future due to reasons such as the revision of tax laws.

Product description

Available Deposit Currency
JPY
Available Counter Currencies
USD, EUR, GBP, AUD, NZD, CAD, CHF
Term of Availability
1 week *, 2 weeks, 1 month, and 3 months; and other terms as determined by SMBC Trust Bank.
  • *In principle, 1 week is available only on online banking. For details of available terms at each channel, inquire at our branches or PRESTIA Phone Banking.
Automatic Renewal
Automatic renewal is not available.
Deposit Amount
Minimum amount of 1,000,000 yen
For transaction via online banking, the minimum amount is 500,000 yen.
  • *SMBC Trust Bank may change the minimum deposit amount without prior notice.
  • *There may be a restriction on the maximum deposit amount depending on the deposit timing and/or transaction channel.
Payment at Maturity

The Deposit is processed as follows on the maturity date.

Principal

  • If the Spot Price of Yen against the Counter Currency which is determined by SMBC Trust Bank based on the exchange rate as quoted in the interbank market at 3:00 p.m. on the maturity date indicates Yen appreciation equal to or beyond the Strike Price:
    The principal shall be converted into the Counter Currency at the Strike Price, and then credited to the PRESTIA MultiMoney Foreign Currency Savings Account in the Counter Currency.
  • If the Spot Price of Yen against the Counter Currency which is determined by SMBC Trust Bank based on the exchange rate as quoted in the interbank market at 3:00 p.m. on the maturity date indicates Yen depreciation beyond the Strike Price:
    The principal shall be credited into the PRESTIA MultiMoney Yen Savings account.

Interest

Interest after deduction of taxes shall be credited into the PRESTIA MultiMoney Yen Savings account.

Note

The principal and interest will be credited into the PRESTIA MultiMoney Savings Account on the business day following the maturity date (with the credit dated as of the maturity date). Therefore, the funds in PRESTIA MultiMoney Savings can be withdrawn/used from the business day following the maturity date.

Applicable Interest Rates
The applicable rate from the date of deposit until maturity shall be the rate as published by SMBC Trust Bank at the time of making the deposit.
Interest rates will change according to market conditions; thus interest rates may vary depending on the timing even when the same Counter Currency, Tenor, Strike Price, and Differential are specified. The savings interest rate of the account to which the maturity funds are credited will apply on and after the maturity date. For the latest rates, please inquire at our branches, PRESTIA Phone Banking or online banking.
Payment Method
Interest is paid in a lump sum at maturity.
Transaction Channels and Contact Number
Branches of SMBC Trust Bank Ltd. that are set up to handle said transactions.
Certain transactions may not be available via online banking and PRESTIA Phone Banking.
For details, please inquire at our branches or via PRESTIA Phone Banking (Domestic (toll-free) 0120-110-330; From overseas (charges apply): 81-46-401-2100.)

Important Notices

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.

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".

Other considerations

  • 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.
  • The payment will be made by crediting the proceeds of the principal and interest as of the maturity date into the PRESTIA MultiMoney Savings Account of the respective currency on the maturity date or the following bank business day.
    The savings interest rate will apply to the deposit on and after the maturity date.
  • In case of US residents, we may not be able to accept your application.
  • Please see here for the details of Risk of loss of principal, Commissions, Other considerations and available currencies, etc.

Company Name : SMBC Trust Bank Ltd.

  • 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.

Related Information

For Transactions

Customers can use the following methods to check the strike prices that can be set, applicable interest rates, etc.

InternetOnline banking

InternetOnline banking

  • *Connecting to transaction menu from above.
    Navigation Menu: Investment & Reports > Premium Deposit (Structured Deposits)

Telephone

PRESTIA Phone Banking

0120-110-330Within Japan (toll-free)

24 hours a day, 365 days a year

81-46-401-2100From Overseas (toll-charge)

24 hours a day, 365 days a year