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Optimise Your Investment
If you would like to take advantage of favourable foreign exchange movements and potentially earn a higher rate of interest when compared to a standard term deposit, you may wish to consider investing in a National Australia Bank Dual Currency Investment.
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 (Click to download our application forms)
You can also email us or contact our Partners for more details.
What is a Dual Currency Investment?
A Dual Currency Investment (the "Investment") is a foreign exchange linked structured product.
The principal of the Investment is paid on the Investments maturity date in either the Investment Currency or the Alternative Currency, depending on the exchange rate movements of the two currencies and their levels at or about the Payment Currency Fixing Time. Your Relationship Manager will advise of the Payment Currency Fixing Time.
The interest on the Investment will always be paid on the maturity date, in the Investment Currency.
Which currencies can be selected?
Investment are available in the following currencies: Singapore Dollars (SGD), Hong Kong Dollars (HKD), United States Dollars (USD), Australian Dollars (AUD), New Zealand Dollars (NZD), Great British Pounds (GBP), Euros (EUR), Japanese Yen (JPY) and Swiss Franc (CHF).
What is the minimum Principal Amount?
When investing with SGD, the minimum Principal Amount must not be less than SGD250,000. For all other currencies, the amount of any deposit must not be less than the equivalent of USD50,000.
What terms are available?
Terms range from 1 week to 1 year.
Can Dual Currency Investment be terminated before Maturity Date?
You cannot withdraw any part of the Investment before maturity. A Dual Currency Investment is neither transferable nor negotiable.
Scenarios
The calculations below illustrate the financial returns of three scenarios.
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Investment Currency
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USD
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Alternative Currency
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AUD
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Principal Amount
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USD50,000
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Investment Period
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30 days
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Pre-determined Exchange Rate
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AUD/USD 0.7780^
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Interest Rate
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10% p.a.
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Traditional Term Deposit Interest
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3% p.a.
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Calendar Year Days
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360 days
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^AUD/USD refers to 1 Australian Dollar to the equivalent amount of US Dollar.
- Scenario 1 - where USD50,000 has been invested and the Spot Rate is equal to or above the Pre-determined Exchange Rate at the Payment Currency Fixing Time.
Settlement Amount = Principal Amount + (Principal Amount x Interest Rate x Investment Period / Calendar Year Days)
= USD50,000 + (USD50,000 x 10% x 30 / 360)
= USD50,000 + USD416.67
= USD50,416.67
Gain on interest
= USD50,416.67 - USD50,000
= USD416.67
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Scenario 2 - where USD50,000 has been invested and the where the Spot Rate on the Maturity Date is below the Pre-determined Exchange Rate at the Payment Currency Fixing Time.
Settlement Amount = Principal Amount / Pre-determined Exchange Rate + (Principal Amount x Interest Rate x Investment Period / Calendar Year Days)
= USD50,000 / 0.7780 + (USD50,000 x 10% x 30 / 360)
= AUD64,267.35 + USD416.67
If the AUD amount is converted back to USD immediately at the market Exchange Rate (0.6500 in this scenario) on the maturity date, a loss on Principal Amount will be incurred
= USD50,000 - AUD64,267.35 x 0.6500
= USD50,000 - USD 41,773.78
= USD - 8,226.22
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Scenario 3 - where USD50,000 has been invested in a traditional term deposit.
Principal Amount + Interest
= USD50,000 + (USD50,000 x 3.00% x 30 / 360)
= USD50,000 + USD125
= USD50,125
View the Terms and Conditions with risk disclosure statement for Dual Currency Investment
Important Notice: Before placing a Dual Currency Investment with us, you should (i) consult your own advisers on the legal, regulatory, tax, business, investment, financial and accounting implications of the Investment; (ii) carefully consider whether a Dual Currency Investment is appropriate for you in light of your investment objectives, experience, financial and operational resources, and other relevant circumstances; (iii) understand the nature of the Investment and the related contract (and contractual relationship) including, without limitation, the nature and extent of your exposure to risk; and (iv) understand any regulatory requirements and restrictions applicable to you. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether a Dual Currency Investment is suitable for you. In considering this, you should have regard to your needs for both the Investment and Alternative Currency.
The Information has been prepared for dissemination to you for information purposes only and any statements as to past performance do not represent future performance. The Information does not purport to contain all matters relevant to any particular investment or financial instrument and all statements as to future matters are not guaranteed to be accurate. In all cases, anyone proposing to rely on or use the Information should independently verify and check the accuracy, completeness, reliability and suitability of the Information and should obtain independent and specific advice from appropriate professionals or experts. The Information is not intended as an offer for the purchase or sale of any financial instrument.
National Australia Bank Limited, Singapore. Reg. No. S81FC2979B.
National Australia Bank Limited ABN 12 004 044 937 is incorporated in Australia
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