Dec. 8, 2014
Sony Bank Inc. ("Sony Bank"), a wholly-owned subsidiary of Sony Financial Holdings Inc., today announced that it will begin offering "Exchange Rate-Linked Deposits" on December 16, 2014.
These deposits, with a deposit amount in yen and based on a predetermined deposit period, are structured into a contract under which the currency in which the principal and interest amount are repaid at maturity is determined according to exchange rate levels. Although the customer is unable to determine the currency in which the deposit is repaid at maturity, this type of deposit offers the opportunity to receive higher-than-usual rates of interest over a relatively short time period. If the yen is more appreciated at the value date than the contract rate, on the maturity date the principal and interest amount will be converted at the contract rate to a specified currency (foreign currency) and deposited to the customer's foreign currency ordinary deposit account.
Conversely, if the yen is depreciated, the contract will be dissolved, and the principal and interest amount will be returned in yen to the customer's yen ordinary deposit account on the maturity date. Applications will be accepted via a PC-accessible website in amounts from ¥100,000, with interest rates determined individually at the time of application. This deposit product has five specified currencies: the U.S. dollar, euro, Australian dollar, New Zealand dollar and South African rand. Deposit periods are fixed, such as two weeks or one month.
Sony Bank aims to better meet customers' diverse investment needs by offering a lineup of exchange rate-linked deposits.
Note: This is an English-language summary of a Japanese announcement made by Sony Bank on December 8, 2014.The summary was prepared by Sony Financial Holdings solely for convenience of non-Japanese readers.