How is the USD Cash Yield portfolio different from fixed deposits?
There are a few key differences between a classic fixed deposit account at a bank and USD Cash Yield.
|
Fixed deposit |
USD Cash Yield | |
|---|---|---|
|
Description
|
An account opened at a bank that pays a guaranteed interest rate after a stipulated time period. |
A portfolio that invests into short-term US Treasury Bills.
|
|
The rate |
You lock a guaranteed rate. |
The rate is a projection and moves along with US Treasury Bill rates. |
|
Lock-in period |
Varies from 3 to 12 months on average. |
None |
|
Minimum amount |
Usually requires $20,000+ of new funds to earn preferential interest rate |
None.
|
|
Deposit insurance |
Insured under Hong Kong’s Deposit Protection Scheme for up to $500,000 HKD per depositor per scheme member. |
Uninsured. |