Enhanced Premium Currency Investment
Not only does Enhanced Premium Currency Investment (EPCI) pay a higher interest rate compared to conventional savings or time deposits, it lets you set your own limits according to your knowledge of the currency market and at your own comfort level. This way you’ll have control of your money and be protected from adverse currency movements, a benefit not available in regular Premium Currency Investment (PCI).
Next Steps
Call: 1800 747 7000
benefits
With Enhanced Premium Currency Investment, you’ll enjoy:
  • Greater control of your investment because you get to customise your investment according to your view of the currency market
  • Protection on your base currency against conversion in the event of adverse currency movements, a feature not available in regular PCI
  • Higher interest rates as compared to traditional bank deposits
Choose your own comfort level Enhanced Premium Currency Investment (EPCI) allows you to choose your own currency pairing, the Target Conversion Rate as well as specify a level of exchange rate you’re comfortable with, known as the Trigger Rate. This provides you the chance of additional protection against adverse currency movements not available in regular Premium Currency Investment.
Wider choice, shorter tenors and lower minimum deposits Start investing with as little as USD100,000 (or its equivalent). Larger amounts can be placed in tenors of just one week. And with over 60 currency pairs to select from, you’re in control of your investments.
How Enhanced Premium Currency Investment works
Click to find out how EPCI works.
  • EPCI with Knock-Out Barrier – when the Trigger Rate is reached anytime during the tenor, there will be no conversion of the proceeds to the alternate currency regardless of where the Spot Rate ends on the Fixing Date.
    How EPCI with Knock-Out Barrier could work
    Let’s assume that you have funds of USD200,000
    You do not mind holding AUD
    Let's say that the Spot Exchange Rate between these 2 currencies is 0.7400. Preferring to be more conservative you set a Target Conversion Rate (TCR) of 0.7350 and also select a Trigger Rate of 0.7000
    As you would not be using the funds in the next month, you choose a tenor of 1 month
    At this stage, we will inform you of the guaranteed interest rate that you will enjoy. In this case, let’s assume 7% p.a.
    Depending on the movement of USD/AUD during or at the end of the investment tenor, it will be determined if you will be repaid your funds plus the guaranteed interest in USD or AUD
    Scenario 1 Scenario 2
    USD/AUD reaches or moves above the Trigger Rate of 0.7000 any time during or at the end of the tenor and: USD/AUD does not reach or move above the Trigger Rate of 0.7000 any time during or at the end of the tenor
    On Fixing Date On Fixing Date
    You will receive: Your Funds a) USD weakens against AUD compared to the TCR you have set. It now trades at 0.7450 You will receive: Your Funds
    + +
    one-month’s interest in USD Which is: 200,000 one month’s interest in USD as in Scenario 1

    b) USD strengthens against AUD but not beyond the Trigger Rate. It now trades at 0.7250
    + +
    (1/12 x 7% x 200,000)= USD201,167* You will receive: Your Funds
      +
     

    one-month’s interest in AUD converted at TCR of 0.7350

    Which is:
    (200,000 + 1,167) / 0.7350
    = AUD273,696*†

    (if converted at USD/AUD spot of 0.7250 at expiry, USD equivalent is USD198,430*†, representing a shortfall of USD1,570*†)
    * Figure rounded to nearest dollar
    • The actual profit/shortfall is dependent on the spot USD/AUD at expiration
  • EPCI with Knock-In Barrier – if the Trigger Rate is never reached anytime during the tenor, there will be no conversion of the proceeds to the alternate currency regardless of where the Spot Rate ends on the Fixing Date.
    How EPCI with Knock-In Barrier could work
    Let’s assume that you have funds of USD200,000
    You do not mind holding AUD
    Let’s say that the Spot Exchange Rate between these 2 currencies is 0.7450. Preferring to be more conservative you set a Target Conversion Rate (TCR) of 0.7350and also select a Trigger Rate of 0.7450
    As you would not be using the funds in the next month, you choose a tenor of 1 month
    At this stage, we will inform you of the guaranteed interest rate that you will enjoy. In this case, let’s assume 6% p.a.
    Depending on the movement of USD/AUD during or at the end of the investment tenor, it will be determined if you will be repaid your funds plus the guaranteed interest in USD or AUD
    Scenario 1 Scenario 2
    USD/AUD does not reach or move above the Trigger Rate of 0.7450 any time during or at the end of the tenor USD/AUD reaches or moves above the Trigger Rate of 0.7450 any time during or at the end of the tenor and:
    On Fixing Date On Fixing Date
    You will receive: Your Funds a) USD weakens against AUD compared to the TCR you have set. It now trades at 0.7550 You will receive: Your Funds
    + +
    one-month’s interest in USD Which is: 200,000 one month’s interest in USD as in Scenario 1

    b) USD strengthens against AUD beyond the TCR. It now trades at 0.7250
    + +
    (1/12 x 6% x 200,000) = USD201,000 You will receive: Your Funds
      +
     

    one-month’s interest in AUD converted at TCR of 0.7350

    Which is:
    (200,000 + 1,000) / 0.7350
    = AUD273,469*†

    (if converted at USD/AUD spot of 0.7250 at expiry, USD equivalent is USD198,265*†, representing a shortfall of USD1,735*†)
    * Figure rounded to nearest dollar
    The actual profit/shortfall is dependent on the spot USD/AUD at expiration
Disclosures and disclaimers
Enhanced Premium Currency Investment is not a deposit but an investment product. Unlike traditional deposits, Enhanced Premium Currency Investment has an investment element and returns may vary. The return on Enhanced Premium Currency Investment will be dependent, to at least some extent on movements in specified currency exchange rates. A wide range of factors, including national and international financial and economic conditions and political and natural event, affects currency exchange rates. The effect of normal market forces may at times be discounted by interventions by central banks and other bodies including foreign exchange controls being imposed. At times, the exchange rates and prices linked to such rates may rise or fall sharply. Such rise and fall in rates can result in a loss on the principal sum (in comparison with the amount of the base currency initially invested) if the proceeds are paid at maturity in the alternate currency. A dual currency investment involves a currency option which confers on the deposit-taking institution the right to repay the principal sum at maturity in either the base or alternate currency and part or all of the interest earned on this investment represents the premium on this option. By purchasing this 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. This document does not constitute any recommendation that any person enters into any transaction described or any similar transaction and must be read in conjunction with the Currency Linked Account Agreement. You may wish to seek advice from a licensed or an exempt financial advisor before making any commitment to invest in this product. In the event that you choose not to seek advice from a licensed or exempt financial advisor, you should carefully consider whether this product is suitable for you.