Premium Deposits is a flexible investment product that is linked to currency exchange rate. It is more suitable to invest in Premium Deposits when the forex market is stable. Premium Deposits provides an opportunity to use currency option to earn a higher potential return according to personal investment preference and outlook on the relevant currency exchange price. Even if the linked currency exchange price does not move in line with your expectation, the preferential interest amount can offset part of the loss.

You can set the strike price according to your needs. The strike price and the premium interest rate of Premium Deposits will be fixed at the time you enter into the transaction.

Deposit currency and linked currency can be chosen among 8 currencies, including HKD, USD, AUD, NZD, GBP, CAD, EUR and JPY. Also, tenor can vary from 1 week, 2 weeks, 1 month, 3 months to 6 months, while the investment amount can be as low as HKD50,000 or its equivalent in another currency. With various combinations, diversified investment needs can be better served.

Transactions can be conducted through our manned trading hotlines, Internet Banking and designated branches of Nanyang Commercial Bank. Trading hours are from 9:00am to 5:00pm (Mondays to Fridays) for our branches, and from 9:00am to 7:00pm (Mondays to Fridays) for manned trading hotlines and Internet Banking.

1. A deposit currency, and

2. A linked currency (the exchange rate of which you expect to remain fairly stable).

Either the deposit currency or the linked currency must be in HKD or USD. We will instantly agree on a strike price with you according to the deposit currency and linked currency you have chosen.

1. If the spot price^* is higher than or equal to the strike price^{^}
   Settlement amount = The aggregate of the principal amount and the premium interest amount payable in the deposit currency

2. If the spot price is lower than the strike price
   Settlement amount = The aggregate of the principal amount and the premium interest amount, converted into the linked currency at the strike price and payable in the linked currency

^*We will take the forex rate quoted at 2:00pm on each business day as the spot price for maturity on the same day.

^{^}"Spot price" and "strike price" each means, if the exchange rate is quoted as the number of units of deposit currency required to purchase one unit of the linked currency, such exchange rate or, if the exchange rate is not quoted in the above manner, 1 divided by the quoted exchange rate.

1. The above example and graph are for reference only and do not guarantee or represent the final returns of Premium Deposits.

2. The returns shown in the graph are based on the premium interest rate and strike price assumed in the example. It is also assumed that the principal and interest will be totally converted into the deposit currency at maturity.

• Different from ordinary deposits : This product carries risks which do not exist in ordinary bank deposits and should not be considered as a substitute for ordinary bank deposits.

• Credit risk : This product is not backed by any collateral. If you invest in this product, you will be taking the credit risk of Nanyang Commercial Bank Limited.

• Exchange rate risk : The return of this product is linked to the exchange rates of the linked currency. Movements in exchange rates can be sudden and drastic. You shall bear any risk of loss arising from exchange rate fluctuations. You may lose all or part of your investment as a result of a big drop in the exchange rates.

• Liquidity risk : Once the transaction for this product is confirmed, no partial or full withdrawal will be allowed before maturity.

• Option Risk : This product is embedded with a FX option. Option transactions involve a high degree of risk. Movements in exchange rates may in the worst case result in your losing the entire deposit principal and interest. By investing in this product, you accept a legal obligation to settle the option in the linked currency which will be a weaker currency then, if the option is exercised against you at maturity, however far the exchange has moved away from the strike price.