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Seizing dual return on your selected currency with Premium Account

Citibank Premium Account integrates the benefits of a regular time deposit and A foreign currency investment. It is a foreign currency investment product that captures opportunities in the foreign exchange market, allowing you to benefit from enhanced interest rates through a foreign currency option.

When investing in a Premium Account, timing, choice of currencies and your personal investment preference are crucial. You may find a Citibank Premium Account suitable for you under the following circumstances:

You wish to receive a higher interest rate as compared to a traditional time deposit and you are comfortable holding either the base or the alternate currency.
You are waiting to buy another currency for investment, diversification, business or migration purposes, or are planning to send your children overseas. You can earn a higher interest rate as compared to a traditional time deposit while waiting to buy the alternate currency at your preferred Strike Price.
You are holding the view that your base currency will weaken further.In view of that, the higher interest rate earned may buffer you against adverse foreign exchange movements and you are likely to have a higher chance of receiving your principal and interest back in your base currency that is weakening.

In the meantime, you may need to aware that Premium Account is an investment product and the returns may vary. The product is subject to a number of risks. Before you open a Premium Account, Citibank will help you fully understand your investment goal and risk tolerance level through an individual risk profiling. Based on the result, you can work out an appropriate investment plan with your relationship manager.

A Citibank Premium Account gives you the opportunity to earn potentially higher interest than a traditional time deposit by taking advantage of currency rate movement. In addition to attractive interest rates, it provides you with:

A wide selection of currencies (USD, GBP, EUR, HKD, AUD, CAD, SGD, CHF, NZD, JPY).
Flexible tenures that cater to your specific needs in a short-term investment.
An opportunity to diversify into a second currency of your choice at your pre-agreed exchange rate.

When customer opens a Premium Account, He/She needs to decide the investment amount of the base currency (the currency he is holding for the time being), investment tenure and another foreign currency as alternate currency for the option sold to the bank. Upon maturity, the bank will decide whether to pay customer in base currency or to convert into the alternate currency at predetermined exchange rate. Premium Account is an investment product. The return is floating and the principal is not guaranteed. Premium Account gives you the opportunity for higher returns, although you will be exposed to greater risks than a regular foreign currency time deposit.

Risk disclosure: This is an investment product with investment risk. The principal and return are not guaranteed. Investors may incur a principle/return loss due to the associated risks. For specific risks and features, please refer to relative terms and conditions.

The following examples show the calculation of the potential investment returns on Premium Account. The hypothetical Spot Rates, Interest rate and Return shown in the following examples are only for illustrative purposes regarding structure mechanics for calculating the potential return of Premium Account. The levels / movement / trends shown have no reference to historical data and do not represent actual or future performance:

Select Base Currency: USD100, 000
Select Alternate Currency: AUD
Select a Tenure: 1 month
Select a Preferred AUD/USD
Strike Price: 0.7300

(Assuming the current market for AUD/USD is 0.7500 and investor does not mind diversifying into AUD at a preferred price of 0.7300)

USD 1-month tenure Time Deposit Rate (p.a.) 0.25%
Option Return Rate (p.a.) 7.75%
Total Investment Return Rate (p.a.) 8%
Transaction Date: Nov 10, 2008
Value Date: Nov 12, 2008
Expiry Date: Dec 10, 2008
Maturity Date: Dec 12, 2008

	Scenario 1	Scenario 2
AUD/USD on Expiry Date	0.7600 USD weaker compared to Strike Price of 0.7300	0.7200 USD stronger or equal to compared to Strike Price of 0.7300

Payout Currency	Principal and Return will be paid in USD	Principal and Return will be paid in AUD

Principal + return received upon maturity	USD100, 666.67 (=USD100, 000 + USD100, 000 x 8% x 30 / 360)	AUD137, 899.55 (= USD100,666.67 / 0.7300) If converted to USD at 0.7200, the amount is equivalent to 99,287.67(= AUD137, 899.55 x 0.7200)which is less that the principal amount.

Note:

All listed examples do not take tax into consideration. The bank reserves the right to deduct any tax from the investor account(s) according to any China law, and/or any requests from the relevant tax authorities.
All interest rate and return rate listed in the hypothetical example are for illustrations only, and do not represent any of historical, actual and future performance.
Option return and Interest rate (p.a.) for GBP, SGP and HKD are calculated on 365-day yearly basis, all other currencies are calculated based on a 360-day convention.
The Premium Account or any part of it hereof shall not be withdrawn before the pre-determined maturity date.

Premium Account is an investment product and the returns may vary. Before you open a Premium Account, Citibank will help you fully understand your investment goal and risk tolerance level through an individual risk profiling.

Minimum transaction amount CNY 100,000 equivalent. (Automatically translated by the real exchange rate in the system). There is no account-opening fee.
Currencies to choose from: USD, EUR, YEN, GBP, AUD, NZD, CAD, SGD, CHF, HKD.
Investment tenure: 1 week, 2 weeks, 3 weeks, 5 weeks, 1 month, 2 months, 3 months, 6 months.
First transaction of premium account is required in person at Citibank branches and rollover can be operated over phonebanking.

Operation Guide to Citibank Premium Account

Step 1

Place your principal in the base currency of your choice. The currencies you can choose from include: USD, EUR, YEN, GBP, AUD, NZD, CAD, SGD, CHF, HKD.

Step 2

Choose a second currency as your alternate currency and decide on the tenure of your investment.

The currencies you can choose from include: USD, EUR, YEN, GBP, AUD, NZD, CAD, SGD, CHF, HKD.
The tenure can range from 1 week to 6 months.
Depending on your investment strategy and market conditions, select the preferred exchange rate between these two currencies as your pre-determined exchange rate.
You will then be given the interest rate for your Citibank Premium Account.

Step 3

On maturity, you will receive the principal plus interest earned in either the base currency or the alternate currency - whichever is the weaker. This is decided by comparing the pre-determined exchange rate with the prevailing exchange rate on the option expiry date (2 business days before maturity).

Find out more today!

Talk to our Relationship Managers / Personal Bankers / Treasury Sales Officers to find out more.

Alternatively, you can contact us at our 24-hour Toll-free CitiPhone Banking hotline at 800-830-1880 (within mainland China) to make an appointment. If you are in Hong Kong, Macau, Taiwan or overseas, please call 86-20-38801267 to reach our CitiPhone Officers.

Disclaimers:

Risk Disclosure• Premium Account is not regular Time Deposit but an investment product with potential risk.• Withdrawal of the Premium Account or any part thereof prior to the specified maturity date is not allowed.• The investors will be subject to the risks of the alternate currency's depreciation: their original funds may be substantially reduced due to the depreciation of the alternate currency. Investors should therefore carefully consider whether investing in PA is consistent with their own financial position, investment goal and risk altitude (For detailed information, please refer to Premium Account Terms and Conditions).DisclaimerThe information on the website is not an offer to sell nor is it a solicitation of an offer to enter into a transaction and all expressions of opinion are subject to change without notice. The terms set forth herein are intended for discussion purpose only and are subject to the final expression of the terms of the transaction in the applicable agreements and/or confirmations. Prior to making any investment decision, investors should fully understand the economic risks and merits, as well as the legal, tax and accounting characteristics and consequences of the transaction, and make their own determination whether the investment is consistent with their objectives and whether the investors are able to assume the risk. Investors investing in accounts denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal when the non-local currency is converted to local currency.

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