Assuming the fixed interest rate is 1.55% p.a.
This Structured Deposit’s interest payable is referenced to SGD interest rate stability. Investors are guaranteed 1.55% p.a. interest on the 1st semi-annual coupon payment date. The Bank has a right to redeem the deposit on every semi-annual coupon payment date. Additionally, there is also daily prices and liquidity in the event that early redemptions are made.
At the end of Year 1:
Investor is guaranteed to receive a fixed interest of 1.55% p.a. (2 payments) if the Bank does not exercise the option to make and early redemption of the deposit.
At the end of Year 1.5:
If the Bank chooses to call back the deposit, the investor will receive 100% of the principal plus any accrued interest for the period.
If the Bank chooses not to call back the deposit, the investor will continue to receive a fixed interest of 1.55% p.a. (payable semi-annually) plus 100% of the principal on maturity.