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Maybank Dual Currency Investment #ForYou

Invest in Dual Currencies with Maybank


Dual Currency Investment is a short-term investment product that gives you the opportunity to earn potentially higher returns on investment in the currency markets.

You can select a base currency and an alternate currency for your investment from a basket of currencies such as the AUD, EUR, SGD, USD and many more. You will also enjoy the flexibility of various tenors (from 1 week to 6 months) and a Target Conversion Rate of your choice.

On maturity, you will receive principal plus interest earned in either the base currency or the alternate currency at the Target Conversion Rate determined at the investment start date.

Get on track to potentially higher returns today.

Benefits


  • Potential to earn higher returns
  • Choice of tenors
    Select an investment period between 1 week and 6 months
  • Choose from a wide range of currencies
    EUR, GBP, AUD, NZD, USD, CHF, CAD, JPY, HKD, SGD and CNH (offshore)
  • Opportunity to obtain the alternate currency at a lower exchange rate
    (as compared to the exchange rate on the day you invested)
  • Suitable for investors with the need for one or a variety of alternate currencies

In return for potentially higher yield, the investor gives the Bank the right to repay them either in the base or alternate currency at the maturity date of investment.

How it Works


The illustrations below are based on an investment amount of S$100,000 and a duration of 28 days.

Example:
On 5 April 2022, USD/SGD trades at $1.3900. An investor, Mr Lim, believes the currency pair will trade in a narrow range and will not fall below the range of $1.3750 in a month’s time. Mr Lim decides to invest to enjoy higher returns. He does not mind holding USD as he travels to United States of America frequently for business.

 

Glossary of Terms


Base Currency
Investment currency for investing in the Dual Currency Investment

Alternate Currency
The other currency which the investor may receive at the maturity of the investment

Tenor
Duration of the investment; ranges from 1 week to 6 months

Trade Date
Day on which investor places order for the trade

Effective Date
Day on which investment amount will be settled and interest on Dual Currency Investment starts accruing

Fixing Date/Time
Day and time on which Maybank determines if the investor will be repaid in either the base currency or the alternate currency at the Target Conversion Rate (that was determined on the Trade Date), being 2 business days before Maturity Date at 2 pm Singapore time.


Maturity Date
Day on which proceeds of the investment are credited into the investor’s account

Spot Rate
Market FX rate – used during Trade and Fixing Dates

Target Conversion Rate
Exchange rate chosen by the investor to be used by Maybank to convert the principal + interest in base currency into the alternate currency

Yield
Interest paid on the Dual Currency Investment

Key Risks


Foreign Exchange Risk
Dual Currency Investment is not an ordinary time deposit or foreign currency deposit but an investment product embedded with a currency option. The Bank has the right to repay the investor at maturity date either in the base currency or in a specified alternate currency at a conversion rate agreed at the time the Dual Currency Investment was made. The Dual Currency Investment is an investment product described as “principal-at-risk”. The actual return of the investment may be negative in the event the base currency is paid in the alternate currency.

Early withdrawal/early termination
As provided in the Terms and Conditions of the Dual Currency Investment, an early withdrawal or early termination of the Dual Currency Investment may also result in a lower rate of return for the investor or a loss of the initial base principal amount invested/deposited. The Bank may, in its sole discretion, deduct additional costs, losses or expenses incurred in relation to such early withdrawal or early termination (including without limitation, any break cost, administrative cost, cost of unwinding any hedge being put in place, cost of funding or loss of bargain).

Cancellation of investment
In the event the investor requests to cancel the Dual Currency Investment before the investment amount has been debited from the investor’s account or fails or neglects to place the investment amount on trade date, the Bank shall have the right to cancel the Dual Currency Investment and charge all costs and expenses incurred arising from the aforementioned failure or neglect (the “Cancellation Cost”). The calculation by the Bank of any Cancellation Cost shall be conclusive and binding on the investor save on manifest error. The investor hereby agrees and authorises Maybank to debit their account for any Cancellation Cost, after which the instruction for the Dual Currency Investment will be deemed terminated with immediate effect.

Non-principal protection
Dual Currency Investment does not have principal protection and the principal amount of the investment is NOT guaranteed.

Non-insured deposit
A Dual Currency Investment is not an insured deposit for the purposes of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 (Act 15 of 2011 ).

 

Warning: By purchasing the Dual Currency Investment, you are giving the issuer of this product the right to repay you at a future date in an alternate currency that is different from the currency in which your initial investment was made, regardless of whether you wish to be repaid in this currency at that time.

Dual Currency Investments are subject to foreign exchange fluctuations, which may affect the returns of your investment. Exchange controls may also be applicable to the currencies your investment is linked to.


You may incur a loss on your principal sum in comparison with the base amount initially invested. 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.

This brochure does not purport to identify all the risks which may be associated with Dual Currency Investments.

This brochure is prepared by Maybank for information purposes and should not be construed as an offer to sell, recommend or solicit the purchase of any investment product, enter into any transaction or adopt any investment strategy. Maybank makes no representation and/or warranty as to the accuracy or completeness of this information and is not liable for any errors or omissions herein, nor shall it be liable for any losses arising out of any person's reliance upon this information. This statement is not intended to provide personal investment advice and no consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Investors should therefore rely on their own judgment and/or seek financial, legal and other advice in making their investment decisions. Any information contained herein is subject to change at any time, without prior notice.

This advertisement has not been reviewed by the Monetary Authority of Singapore.