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| Home>Investments>Enhanced Yield Account |
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| Enhanced Yield Account (EYA) is a principal protected investment product (if hold to maturity) with a floating return. The investor uses the interest due on his/her investment principal to buy a digital option in the form of European Call or Put. The return (if any) on the investment will depend on the performance of the underlying foreign exchange rates or commodity price chosen. The principal and investment return (if any) will be paid on maturity. |
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| Note: European options are options that can only be exercised at expiry date (i.e. a pre-designated point of time). Digital option is a type of option where the payoff is either a fixed amount or nothing at all. |
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| Advantages of Enhanced Yield Account |
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- An opportunity to earn potentially higher interest than time deposit of the same tenure;
- 100% principal protection;
- A wide selection of currencies;
- Flexible tenures to cater to your specific needs.
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| Risk Class requirement for EYA is level 2. |
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| Foreign Exchange Trinity |
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| Note: Investment product is not a deposit and subject to investment risk. The investor should act prudently. |
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- Minimum Investment Amount: USD10,000 (equivalent) or RMB50,000
- Investment Tenure: 5 weeks, 2 Months and 3 Months
- Investment Currency: USD, AUD, NZD, EUR, GBP, JPY, RMB
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| Note: For specific features, please refer to the related product sales documents. |
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| * Product code in China Wealth Management Information Registration System: C1053109000001,C1053109000051 |
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| For more information, please: |
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| (1) Visit us at any of our Citibank branches and sub-branches; |
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| (2) Call your financial advisor (NOT applicable to first time PA/EYA customers); |
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| (3) Call Citibank 24-Hour Service Hotline 400-821-1880 / 800-830-1880 (For land lines within mainland China). If you are overseas, please call(+86)-(20)-3880-1267. |
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| The following data are simulated data. |
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| The following Examples show the calculation of the potential investment returns on EYA. The hypothetical Spot Rates, Interest rate and Return shown in the following examples are for illustrative purposes only regarding structure mechanics for calculating the potential return of EYA. The levels / movement / trends shown have no reference to historical data and do not represent actual or future performance: |
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| Example 1: Call EUR against USD |
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| Investment Currency: |
Euro |
| Principal: |
Euro 50,000 |
Underlying Foreign
Currency Pair: |
EUR/USD |
| Option Type: |
Call EUR against USD |
| Tenure: |
3 months (91 days) |
| Strike Price: |
EUR/USD: 1.4700 |
| (Assuming the current market for EUR/USD is 1.4500 and investor believes EUR/USD will appreciate to 1.4700 on Expiry Date) |
| Potential Investment Return (p.a.): |
6.50% |
| Transaction Date: |
Jan 09, 20XX |
| Value Date: |
Jan 11, 20XX |
| Expiry Date: |
Apr 09, 20XX |
| Maturity Date: |
Apr 11, 20XX |
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| (The dates will be adjusted to a trading date if it comes across a non-trading date). |
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Scenario 1 |
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Scenario 2 |
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| EUR/USD on Expiry Date |
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1.4550
Below Strike Price 1.4700 |
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1.4800
Above Strike Price 1.4700 |
Investment return
upon maturity |
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0 |
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Euro 821.53
(= Euro 50, 000 x 6.50%)
x 91 / 360) |
Principal + Return
received upon maturity |
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Euro 50,000 |
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Euro 50,821.53 |
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| Example 2: Put EUR against USD |
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| Investment Currency: |
Euro |
| Principal: |
Euro 50,000 |
Underlying Foreign
Currency Pair: |
EUR/USD |
| Option Type: |
Put EUR against USD |
| Tenure: |
3 months (91 days) |
| Strike Price: |
EUR/USD: 1.4200 |
| (Assuming the current market for EUR/USD is 1.4500 and investor believes EUR/USD will achieve 1.4200 on Expiry Date) |
| Potential Investment Return (p.a.): |
6.50% |
| Transaction Date: |
Jan 09, 20XX |
| Value Date: |
Jan 11, 20XX |
| Expiry Date: |
Apr 09, 20XX |
| Maturity Date: |
Apr 11, 20XX |
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| (The dates will be adjusted to a trading date if it comes across a non-trading date). |
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Scenario 1 |
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Scenario 2 |
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| EUR/USD on Expiry Date |
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1.4450
Above Strike Price 1.4200 |
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1.4150
Below Strike Price 1.4200 |
Investment return
upon maturity |
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0 |
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Euro 821.53
(= Euro 50,000 x 6.50%
x 91 / 360) |
Principal + Return
received upon maturity |
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Euro 50,000 |
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Euro 50,821.53 |
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| Note: |
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- All listed examples do not take tax into consideration. The bank reserves the right to deduct any tax from the investor account(s) according to any Chinese law, and/or any requests from the relevant tax authorities.
- All interest rate and return rate listed in the hypothetical example are for illustrations only, and do not represent any of historical, actual and future performance.
- EYA returns (if any) would be calculated from Value Date. Day count for GBP return is calculated based on a 365-day year. All other currencies available for EYA are calculated based on a 360-day year.
- The Enhanced Yield Account or any part of it hereof shall not be withdrawn before the pre-determined maturity date.
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| Disclaimers: |
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