Twin Currency Deposit - Invest

OVERVIEW

Baiduri Twin Currency Deposit is a short-term investment product which takes advantage of two currencies pairing. This offers an opportunity to earn potentially higher returns based on exchange rate movements.

INFORMATION

Key Features
Higher interest rate compared to normal fixed deposit
Short tenor ranging from 1 week to 1 month
Choice of currency pairs, tenor, strike rate and interest rate based on your investment needs and risk appetite
At maturity, redemption can be in Base Currency or Alternate Currency depending on the currency fluctuation
Non-principal protected
Opportunity to buy the Alternate Currency at lower interbank rate
Key Benefits
Baiduri Twin Currency Deposit is a foreign exchange linked deposit that can meet your foreign currency needs while offering the potential for greater interest than a traditional fixed deposit.

Whether you frequently travel for business, have children studying abroad, or are simply interested in diversifying your investments with foreign currency, Baiduri Twin Currency Deposit may be the perfect solution for you.

To start investing, you will need to determine your second currency you wish to hold and must agree to terms including investment amount, currencies involved, maturity, and strike price. 

Interest is earned in the originating currency, but the principal has the possibility of payment in the second currency, set the exchange rate, your deposit amount and your preferred deposit tenor.

Upon fixing date, if the prevailing exchange rate for the base currency matches or is higher than your pre-agreed rate, you will receive your initial deposit plus interest in your base currency.

If the prevailing exchange rate for the base currency is lower than your pre-agreed exchange rate, you will receive your initial deposit plus interest in your alternate currency at your pre-agreed rate.

A risk profile assessment will be conducted first to see your suitability for the product
Step-by-step Guide
A step by step guide on how it works:

Step 1

Choose a pair of currencies: Australian Dollar (AUD), Euro (EUR), Pound Sterling (GBP) or New Zealand Dollar (NZD)
One will be the Base Currency in which your deposit will be denominated, the other your Alternate Currency

Step 2

Decide on your investment amount (principal)
The standard tenor for deposit below BND100,000 is one month
Option of 1 to 2 weeks tenor is available for deposit of BND100,000 and above

Step 3

Choose the pre-agreed interbank rate or strike rate between the two currencies based on your views on foreign exchange movements
The interbank rate for the base currency will also be fixed

Step 4

Receive your principal plus yield in the Base or Alternate currency depending on whether the pre-agreed interbank rate or strike rate is reached on the fixing date i.e. two business days before maturity and the interbank rate for the base currency will also be fixed
The pre-agreed interbank rate will apply should your principal and yield be converted into the Alternate Currency.

Principal Amount/ Base Currency
Alternate Currency
Tenor
Pre-Agreed Exchange Rate/Strike Price
BND 100,000
AUD
Two Weeks
AUD/BND=1.26
2 business days before maturity
Scenario 1
AUD/BND = 1.28
BND weaken against AUD

Scenario 2
AUD/BND = 1.24
BND strengthens against AUD
Payout Currency on maturity date
At maturity, you will receive your principal and interest in BND.

At maturity, you will receive your principal and interest in AUD converted at the Strike rate.
Principal + Interest received upon maturity
Principal BND 100,000

Interest
BND 100,000 x 5.63%p.a. x 14/365 days = BND215.94

Total Return of BND 100,215.94

Principal BND 100,000

Interest
BND 100,000 x 5.63%p.a. x 14/365 days = BND215.94

Total Return of BND 100,215.94/1.26
=AUD 79,536.46
*All rates and figures that appear here are for illustrative purposes only.

Eligibility Criteria
Required Documents
Fees & Charges
Terms & Conditions
More Info

Eligibility Criteria
Eligibility Criteria
21 years and above
Baiduri Bank account holder
Minimum deposit of BND25,000 (only for 1 month tenor)
Minimum deposit of BND100,000 (for 1 week/2 weeks/1 month tenor)
Subject to risk profiling and client suitability profiling
Required Documents

Required Documents
Valid IC or Passport.
Fees & Charges

Fees & Charges
No subscription fee.
Terms & Conditions

Terms & Conditions
Generic Risk Disclosure statement for Twin Currency Deposit (TCD) and Term & Conditions will be provided upon subscription.
More Info
More Info
Important note

The principal and yield is payable in either the:

Base Currency or
Alternate Currency

You may be subject to risks associated with interbank rate fluctuations and interbank rate controls.

Should you receive the principal and yield in the Alternate Currency and wish to immediately convert your proceeds back to your Base Currency at the prevailing interbank rate, the amount you receive may be less than the original deposit amount.

This product is intended to be held to maturity.

Partial withdrawal of the principal is strictly not allowed for this product.

You should carefully consider whether this product is suitable for you in light of your investment goals, financial needs and risk profile.

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