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Certificate of Deposit |
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Certificate of Deposit gives you fixed returns
In general, Certificate of deposit provides better return than time deposit. Normally, guaranteed interest will be pay at a regular intervals during the life of the Certificate of deposit.
Features
- Typically higher return than time deposit
- Fixed rate Certificate of Deposit pays a fixed amount of interest at regular intervals.
- Floating rate Certificate of Deposit pays interest with reference with a designated benchmark interest rate
Other Information
Certificate of Deposit is NOT equivalent to time deposit and is NOT protected deposit under the Deposit Protection Scheme in Hong Kong.
Risk Disclosure
If a CD holder buys a CD and does not hold the CD to maturity, but instead sells it in the market, the CD holder may incur a loss on his initial investment. This is because, during the term of the CD, the market price of the CD will fluctuate. The market price of a CD may move up or down, compared with the amount of the initial purchase price, depending on many factors, including movements in prevailing interest rates, changes in the perceived credit standing of the Bank and factors generally affecting the market for similar securities or deposits. A CD holder is as likely to incur losses as to realize profits as a result of these market price movements. A customer should carefully consider whether the purchase of a CD is a suitable investment in light of the customer's financial position and investment objectives, particularly if he or she may wish to sell the CD before its stated maturity.
