The NCB Structured Deposit (NSD), combined the features of deposit and option, provides customers a potentially higher return than the traditional fixed deposit. The payment of interest of the NSD is linked with the specific interest rate, foreign exchange rate or price movement of precious metal. In general, the Bank has the right (but not the obligation) to terminate the NSD before the maturity; if do so, the principal amount and all accrued but unpaid interest will be paid to the customers on the termination date; otherwise the principal amount and the last payment of interest will be paid to customers on maturity date.

Types of NSD include (not limited to the following structure, please refer to the NSD Term Sheet for product features):

1.	Step-Up
	The interest rate of the Step-up NSD will rise with the pass through of time. The customers enjoy the specific interest rate as stated in the Term Sheet as long as the Bank hasn't exercise the right of early termination
2.	Inverse Floater
	The interest rate of the Inverse Floater NSD is calculated by using a fixed base rate minus the benchmark rate, usually the LIBOR/HIBOR, with the floor-cap not less than zero. The word "inverse" means the interest rate will decline with the rise of the market interest and vice versa.
3.	Range Accrual
	The interest payment of the Range Accrual NSD is linked with the movement of the benchmark rate (usually the LIBOR/HIBOR). The Bank will designate the Agreed Benchmark Range of each interest payment period. As long as the benchmark moves within the agreed range (counted daily), the customers enjoy the specific high interest rate for calculating the accrued interest; if the benchmark moves out of the agreed range, no interest will be accrued for that day.
4.	Target Redemption
	The Interest Cap Level will limit the total interest payment of the Target Redemption NSD and the NSD will be terminated automatically when the accumulated interest payment reaches the Interest Cap Level. In general, this type of NSD provides customers a fixed interest payment for the first year and the interest payment afterwards will be calculated as Inverse Floater. In other words, customers are more likely to enjoy early auto termination of the NSD and higher per annum rate of return if the market interest rate declines.

NCB Structured Deposit Available for Application:

IMPORTANT NOTICE

The amount of interest to be accrued on the principal amount of the Deposit and/or the time required for the Deposit to mature is uncertain since the Deposit is linked to movement in the underlying exchange rate, HIBOR, LIBOR, other interest rate, price of precious metal or financial indicator (as may be relevant). If the Deposit is terminated before the scheduled maturity date for any reason, you may not be able to receive interest on the same basis as it would have been should the Deposit mature as scheduled. If the Deposit is terminated otherwise than in the event of maturity or termination in accordance with the Termination provision contained in the term sheet, you may not be able to receive the whole of the principal amount of the Deposit. Before placing the Deposit, you should carefully consider (either by yourself or through independent professional advice) the economic merits and risks, as well as the legal, tax or other implications of the Deposit. You are recommended to seek independent professional advice in relation to all aspects of the Deposit in case of doubt. This material does not constitute an offer or an invitation to induce an offer by any person to place a Deposit.