This product is a time deposit 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)
‘Kospi 200 ELD’ offers 5.61% p.a.(before tax) of maximum yield and has a tenor of 1 year, and is linked to Kospi 200 index. ‘Kospi 200 ELD’ provides a fixed rate of 5.61% p.a. (before tax) if the index exceeds the benchmark price by 3% or more at maturity, and rates of min 0% to max 5.61% p.a. depending on the actual growth of the index if the price outperforms the benchmark price at maturity by 0%~ 3%. Even if the index underperforms the benchmark price at maturity, the principal of the deposit is 100% protected.
Since market rates are low and rates for time deposits are getting lower, 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.
*Note : Principal protection is assured only if the products are held to maturity. Early redemption results in rate of 0% and early redemption fees will risk principal. Even at maturity, the rate may be 0% depending on the movement of the linked index.
* For any inquiries, please contact Song, Bum-Ho, Consumer Liabilities/Bancassurance of Citibank Korea at 02-2004-2279.