Top of main content

How does Deposit Plus work?

See how a Deposit Plus may work for you depending on the appreciation or depreciation of the linked currency.


Here's an illustrative example to help you understand how you could capture growth opportunities with Deposit Plus.

John is planning a trip to Australia in the next 2 weeks. He wants to exchange some money in HKD for AUD, and he believes that AUD/HKD will remain stable in the coming week.

We'll assume that the AUD/HKD spot rate is 5.2228.

If John makes an exchange now, he will exchange HKD10,000 for AUD1,914.68.

But he chooses to place a Deposit Plus with these details.
Deposit currency Linked currency Tenor Spot rate (AUD/HKD) Conversion rate (AUD/HKD) Interest rate
HKD AUD 14 days 5.2228 5.2209 6.50% p.a.
But he chooses to place a Deposit Plus with these details.
Deposit currency HKD
Linked currency AUD
Tenor 14 days
Spot rate (AUD/HKD) 5.2228
Conversion rate (AUD/HKD) 5.2209
Interest rate 6.50% p.a.

Scenario 1: AUD appreciates against HKD

AUD rises to or above the conversion rate against HKD

  • John receives the interest and principal in the deposit currency (HKD)
  • Principal: HKD10,000
  • 6.50% p.a. interest income: HKD24.93
  • If he exchanges them at the spot rate on the fixing day, he'll receive a total of AUD1,919.38

Scenario 2: AUD depreciates against HKD slightly

AUD drops below the conversion rate against HKD

  • John receives the interest and principal in the linked currency (AUD) at the conversion rate
  • Principal: AUD1,915.37
  • 6.50% p.a. interest income: AUD4.78
  • He'll receive a total of AUD1,920.15

Scenario 3: AUD depreciates against HKD considerably

AUD drops below the conversion rate considerably against HKD

  • John receives the interest and principal in the linked currency (AUD) at the conversion rate
  • Principal: AUD1,915.37
  • 6.50% p.a. interest income: AUD4.78
  • He'll receive a total of AUD1,920.15.
  • But if he converts it back to HKD at the fixing rate, it could worth HKD5,012.36.

Scenario 4

Return value less than the original amount invested

In the worst-case scenario, John will receive returns in the linked currency, the value of which may be worth substantially less than the original amount he invested (and in extreme cases—eg if HSBC becomes insolvent or defaults on its obligations—it could be worth nothing).

Scenario 5

The Bank becomes insolvent or defaults on its obligations

Assuming that the Bank becomes insolvent during the tenor of this product or defaults on its obligations under this product, John can only claim as its unsecured creditor. John may get nothing back and suffer a total loss of his deposit amount.

Illustrative example

Idle foreign currency from last trip

After John returns from Australia, he has some idle cash in AUD. Instead of converting it back to HKD immediately, he decides to capture the opportunity to increase his potential returns with Deposit Plus. Watch the video to learn more:

Ready to place a Deposit Plus?

Via HSBC Online Banking

Log on to HSBC Online Banking now to get started.

Need help?

If you have any enquiries about investments, you can call us on (852) 2233 3733. Lines are open between 9:00am and 6:00pm, Mondays to Fridays; and between 9:00am and 1:00pm on Saturdays, except on public holidays.

You may also be interested in


Capture currency market opportunities to generate interest and increase potential return starting from HKD5,000


See how a non-principal protected equity-linked investment (ELI) may work for you through different scenarios 


See how a Capital Protected Investment – Currency Linked III (CPI III) may work for you and what payouts you may receive 

The above scenarios are provided for illustrative purposes only, and do not reflect a complete analysis of all possible gain and loss scenarios that may arise during any actual investment. No representation or warranty is made by the Bank that any scenario described above can be duplicated under real investment conditions. Actual results may vary from the results shown above, and variations may be material.


The information shown on this website is neither a recommendation, an offer, nor a solicitation for any investment product or service. Investment involves risk. You should carefully consider whether any investment product or service mentioned herein is appropriate for you in view of your personal circumstances. Past performance is no guide to future performance. Investors should refer to the individual product explanatory memorandum or offering document for further details and risks involved. The price of investment products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling investment products.

Deposit Plus is not regulated by the Securities and Futures Commission (the 'SFC'). The offering documents of Deposit Plus have not been reviewed by the SFC or any regulatory authority in Hong Kong. You should exercise caution when buying any Deposit Plus.

Risk disclosure – Deposit Plus

  • Not a time deposit – Deposit Plus is NOT equivalent to, nor should it be treated as a substitute for, time deposit. It is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.
  • Derivatives risk – Deposit Plus is embedded with FX option(s). Option transactions involve risks, especially when selling an option. Although the premium received from selling an option is fixed, you may sustain a loss well in excess of such premium amount, and your loss could be substantial.
  • Limited potential gain – The maximum potential gain is limited to the interest on the deposit.
  • Maximum potential loss – Deposit Plus is not principal-protected. You must be prepared to incur loss as a result of depreciation in the value of the currency paid (if the deposit is converted to the linked currency at maturity). Such loss may offset the interest earned on the deposit and may even result in losses in the principal amount of the deposit.
  • Not the same as buying the linked currency – Investing in Deposit Plus is not the same as buying the linked currency directly.
  • Market risk – The net return of Deposit Plus will depend upon the exchange rate of the deposit currency against the linked currency prevailing at the deposit fixing time on the deposit fixing date. Movements in exchange rates can be unpredictable, sudden and drastic, and affected by complex political and economic factors.
  • Liquidity risk – Deposit Plus is designed to be held until maturity. You do not have a right to request early termination of this product before maturity. Under special circumstances, HSBC has the right to accept your early redemption request at its sole discretion and on a case by case basis. HSBC will provide an indication of the redemption price upon such request. Your return upon such early redemption will likely be lower than that if the deposit were held until maturity and may be negative.
  • Credit risk of HSBC – Deposit Plus is not secured by any collateral. When you invest in this product, you will be relying on HSBC's creditworthiness. If HSBC becomes insolvent or defaults on its obligations under this product, you can only claim as an unsecured creditor of HSBC. In the worst case, you could suffer a total loss of your deposit amount.
  • Currency risk – If the deposit currency and/or linked currency is not your home currency, and you choose to convert it back to your home currency upon maturity, you may make a gain or loss due to exchange rate fluctuations.
  • Risks relating to RMB – You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (eg the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product. The value of your investment will be subject to the risk of exchange rate fluctuation. In case you receive RMB as the linked currency at maturity and you choose to convert your maturity proceeds to other currencies, you may suffer loss in principal. This product will be denominated (if the deposit currency is in RMB) and settled (received in RMB at maturity) in RMB deliverable in Hong Kong, which is different from that of RMB deliverable in mainland China.