Structured Deposit

Structured Deposit

What is a Structured Deposit?

A Structured Deposit is the combination of a deposit and an investment product. The returns on a Structured Deposit may depend on the performance of the underlying investment product – market indices, equities, commodities, interest rates, fixed-income securities, foreign exchange rates, or a combination of these.

Investors will receive the principal amount of the Structured Deposit, if the deposit is held until maturity. In addition, the investor may receive additional returns on the investment product. Similar to conventional time deposits, the return of the principal and any returns are subject to the credit risk of the bank holding the deposit. If the deposit is withdrawn early (before maturity), the investor may not receive 100% of the money invested.

*Structured Deposits are not insured deposits for the purposes of the Deposit Insurance and Policy Owners' Protection Schemes Act, Chapter 77B of the Statutes of the Republic of Singapore.
  • Unlike conventional deposits, Structured Deposits have an investment element and returns may vary. You may wish to seek advice from a licensed or an exempt financial adviser before making a commitment to purchase this product.

  • In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether this product is suitable for you

Features

  • Tenure: Medium to long-term.  Variable, specific to product offered. 
  • Minimum Deposit: Variable, specific to the product offered.
  • Principal: The bank will repay the Principal Amount in full at maturity or on Optional Early Termination Date, if the bank terminates the deposit before maturity.
  • Returns: Variable, depending on the underlying investment product.  Some Structured Deposits may pay fixed rates.

Benefits

  • Potential for higher returns compared to time deposits.
  • Exposure to assets and/or markets which are not usually accessible to retail investors.
  • Diversification of investments into other financial products.
  • Investors will receive 100% Principal Amount invested if the Structured Deposit is held until maturity.
  • No front end fees or annual management fees.

Risks

  • Structured Deposits typically have a medium-term to long-term investment period.  Investors may not receive 100% of the principal invested if the deposit is withdrawn before maturity (pre-terminated).  Amount repaid will depend on the market value of the investment linked to the Structured Deposit. 
  • Returns may not be fixed.  You may lose some or all of your returns, depending on the performance of the underlying financial product.
  • If a Structured Deposit is callable by the Bank, investor may be exposed to reinvestment risk.
  • The returns on the investment and the principal invested is subject to the credit risk of the bank holding the deposit.
  • Structured Deposits may not be valued daily; investors may not be able to withdraw the deposit immediately.
  • Structured Deposits are not insured deposits for the purposes of the Deposit Insurance and Policy Owners' Protection Schemes Act, Chapter 77B of the Statutes of the Republic of Singapore.

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