[By NBC-1TV H. J Yook]Citibank Korea (CEO, Ha Yung Ku, www.citibank.co.kr) has launched 'Hyundai Motors ELD’ that will be on offer temporarily until December 14th. This product is time deposits whose principal is partially or totally linked to market index, and is suitable for customers who want their principal amounts to be protected at maturity or who seek investment returns that are greater than those of ordinary time deposits. (As fees are charged on early redemption, investors may be exposed to potential principal loss)
‘’Hyundai Motors ELD’ offers 8.0% p.a.(before tax) of maximum yield and has a tenor of 1 year, and is linked to stock price(closing price) of Hyundai Motors. ‘Hyundai Motors ELD’ provides a fixed rate of 4.0% p.a. (before tax) if the stock price(closing price) of Hyundai Motors ever exceeds the benchmark index by 30% or more on initial day, and rates of min 0% to max 8.0% p.a. depending on the index's actual growth if the index does not ever outperform the stock price(closing price) of Hyundai Motors on initial day by 30% or more.
Customers who subscribe to 'Hyundai Motors ELD’, will get special rates on CD(3.7 %, before tax) up to their ELD subscription amount if they open both CD and ELD accounts with tenor of 1 year or more, which will be an excellent opportunity for customers to enjoy rates higher than BM rate or exception rates normally offered for deposit products.
As financial markets grow more volatile recently and varied investment products make negative returns, these Linked Deposits are drawing keen attention from customers who want 100% principal protection plus high returns. The Linked Deposits return full principal amounts to subscribers at maturity even if the concerned indices decline and offer opportunities to invest in diverse underlying assets without risking principal loss as long as they are not redeemed early.