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