Enhanced Yield Account

Seizing higher return without risking your principal

Seizing higher return without risking your principal

Enhanced Yield Account (EYA) is a principal protected investment product (if hold to maturity) with a floating return. The investor uses the interest due on his/her investment principal to buy a digital option in the form of European Call or Put. The return (if any) on the investment will depend on the performance of the underlying foreign exchange rates or commodity price chosen. The principal and investment return (if any) will be paid on maturity.

Note: European options are options that can only be exercised at expiry date (i.e. a pre-designated point of time). Digital option is a type of option where the payoff is either a fixed amount or nothing at all.

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Features
Advantages of Enhanced Yield Account
  • An opportunity to earn potentially higher interest than time deposit of the same tenure;
  • 100% principal protection;
  • A wide selection of currencies;
  • Flexible tenures to cater to your specific needs.

Risk Class requirement for EYA is level 2.
Foreign Exchange Trinity
Note: Investment product is not a deposit and subject to investment risk. The investor should act prudently.<

How to Apply

Minimum Investment Amount: USD10,000 (equivalent) or RMB50,000
Investment Tenure: 5 weeks, 2 Months and 3 Months
Investment Currency: USD, AUD, NZD, EUR, GBP, JPY, RMB

Note: For specific features, please refer to the related product sales documents.
* Product code in China Wealth Management Information Registration System: C1053109000001,C1053109000051

For more information, please:
(1) Visit us at any of our Citibank branches and sub-branches;
(2) Call your financial advisor (NOT applicable to first time PA/EYA customers);
(3) Call Citibank 24-Hour Service Hotline 400-821-1880 / 800-830-1880 (For land lines within mainland China). If you are overseas, please call(+86)-(20)-3880-1267.

Product Illustration

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

Example 1: Call EUR against USD

Investment Currency: Euro
Principal: Euro 50,000
Underlying Foreign
Currency Pair:
EUR/USD
Option Type: Call EUR against USD
Tenure: 3 months (91 days)
Strike Price: EUR/USD: 1.4700
(Assuming the current market for EUR/USD is 1.4500 and investor believes EUR/USD will appreciate to 1.4700 on Expiry Date)
Potential Investment Return (p.a.): 6.50%
Transaction Date: Jan 09, 20XX
Value Date: Jan 11, 20XX
Expiry Date: Apr 09, 20XX
Maturity Date: Apr 11, 20XX

(The dates will be adjusted to a trading date if it comes across a non-trading date).

Scenario 1 Scenario 2
EUR/USD on Expiry Date 1.4550
Below Strike Price 1.4700
1.4800
Above Strike Price 1.4700
Investment return
upon maturity
0 Euro 821.53
(= Euro 50, 000 x 6.50%)
x 91 / 360)
Principal + Return
received upon maturity
Euro 50,000 Euro 50,821.53

Example 2: Put EUR against USD

Investment Currency: Euro
Principal: Euro 50,000
Underlying Foreign
Currency Pair:
EUR/USD
Option Type: Put EUR against USD
Tenure: 3 months (91 days)
Strike Price: EUR/USD: 1.4200
(Assuming the current market for EUR/USD is 1.4500 and investor believes EUR/USD will achieve 1.4200 on Expiry Date)
Potential Investment Return (p.a.): 6.50%
Transaction Date: Jan 09, 20XX
Value Date: Jan 11, 20XX
Expiry Date: Apr 09, 20XX
Maturity Date: Apr 11, 20XX

(The dates will be adjusted to a trading date if it comes across a non-trading date).

Scenario 1 Scenario 2
EUR/USD on Expiry Date 1.4550
Above Strike Price 1.4200
1.4150
Below Strike Price 1.4200
Investment return
upon maturity
0 Euro 821.53
(= Euro 50,000 x 6.50%
x 91 / 360)
Principal + Return
received upon maturity
Euro 50,000 Euro 50,821.53

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 Chinese 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.
  • EYA returns (if any) would be calculated from Value Date. Day count for GBP return is calculated based on a 365-day year. All other currencies available for EYA are calculated based on a 360-day year.
  • The Enhanced Yield Account or any part of it hereof shall not be withdrawn before the pre-determined maturity date.

This Product shall not be provided to a US person for purposes of US federal income tax, or a person acting for, or on behalf of, a US person, or a person with any of the address(es) registered with the Bank being a US address or any other person who fails to meet the Bank’s sales requirement.

Risk Disclosure

  • Enhanced Yield Account is a principal protected investment product with investment risks. This is not a regular deposit. The investment return may be zero. The Customer should fully acknowledge the investment risk and act prudently.
  • Repayment of Principal applies only if the product is held to maturity.
  • The investor investing in non-local currency denominated products should be aware of the risk of exchange rate fluctuations that may cause a loss of the principal when converting non-local currency to local currency.
  • The Customer acknowledges that an Enhanced Yield Account is 1) not insured by any government agency; 2) not a deposit of, or guaranteed by the Bank; and 3) subject to investment risk.

For more details, please refer to Enhanced Yield Account Risk Disclosure Statement.