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Term Deposits are secure investments that can generally offer a higher rate of interest than a simple savings account. Term Deposits are available in a number of currencies, a variety of term lengths, and several redemption options.
A Foreign Currency Term Deposit offers you the ability to earn interest at a guaranteed rate on your foreign funds and is available in most major foreign currencies.
Features:
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Minimum deposit of C$50,000 or equivalent required
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Terms available from 30 days to 1 year
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Deposits are not redeemable prior to maturity
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Interest is calculated daily, not compounded and paid at maturity
This deposit is not eligible for insurance provided under the Canada Deposit Insurance Corporation Act.
The principal and interest earned in the term deposit will be subject to changes in currency-exchange rates if you plan on converting into or out of a foreign currency at maturity. For example, if you plan on converting your term deposit into Canadian dollars at the end of the term, the principal and interest earned in your term deposit may be subject to risk if between the time that you invest and the time that you receive payment the foreign currency has declined in comparison to the Canadian dollar. You may choose to rollover your foreign currency term deposit upon maturity and receive the prevailing rate at the time of renewal. Should you choose a payout, there are a variety of options available to you: if a corresponding foreign currency savings account exists, the matured term deposit can be deposited into such account; or you can have a bank draft issued in the foreign currency amount; or convert the term deposit amount into Canadian dollars and deposit it into the corresponding deposit account with HSBC Bank Canada; or convert the term deposit amount into a foreign currency for which HSBC Bank Canada offers a savings account (for example US dollar accounts) and deposit it into such account.
