Market Linked Deposit

Safe Deposit with Investment Benefits

Market Linked Deposit is a Structured Product that combines derivative and non-derivative instruments. Enjoy the benefits of a 100% guaranteed principal amount, flexible and liquid, with limited risk

Market Linked Deposit (MLD)

A structured product combines non-derivative instruments in the form of placement of funds (deposits) and derivative instruments in the form of Digital Options concerning interest rates.

Foreign Currency

Available in foreign currencies, namely USD and SGD

Tenor: 1, 3, 6, 12 months

It has a variety of tenors ranging from 3 to 12 months

Deposits in USD

There is a minimum placement of USD 20,000

Higher Return

Guaranteed returns are more profitable

Foreign Currency

Available in foreign currencies, namely USD and SGD

Tenor: 1, 3, 6, 12 months

It has a variety of tenors ranging from 3 to 12 months

Deposits in USD

There is a minimum placement of USD 20,000

Higher Return

Guaranteed returns are more profitable

Transaction Illustration

The customer places funds in MLD BTN with a placement nominal of USD 100,000, and the placement period is 2 years with the following coupon rate:

Year	Upper Limit*	Lower Limit*	Coupon Rate When Outside the Limit (Minimum Coupon)			Coupon Rate When Inside the Limit (Including Upper Limit and Lower Limit)
1	5,00%	6,00%	0,20%			1,50%
2	5,100%	5,900%	0,20%			2,00%

*Reference Interest Rate: Secured Overnight Financing Rate (SOFR)

Scenario 1 - Best Case

For 2 years, SOFR is always within the range. The customer will receive:

Principal

USD 100.000

Total Yield

Year 1 Yield + Year II Yield
(1% * 365/365 + 0,2% * 0/365)* USD 100.000 + (1,5% * 365/365 + 0,2% * 0/365) * USD 100.000
USD 2.500 (Gross)
USD 197,26 (Nett)

Scenario 2 - Moderate Case

The movement of SOFR over 2 years is as follows:

Year	Number of SOFR in the Range	Number of Days SOFR is out of Range
1	300	65
2	165	200

The customer will receive the following:

Principal

USD 100.000 x 1,350
135.000 SGD

Total Yield

3% x 30/365 x USD 100.00
USD 246,58 (Gross)
USD 197,26 (Nett)

Scenario 3 - Worst Case

SOFR has always been out of range for 2 years. The customer will receive:

Principal

USD 100.000

Total Yield

Year 1 Yield + Year II Yield
(1% * 0/365 + 0,2% * 365/365) * USD 100.000 + (1,5% * 0/365 + 0,2% * 365/365) * USD 100.000
USD 400 (Gross)
USD 320 (Nett)

Find Answers to Your Questions

What is the legal basis for implementing a Structured Product?

The legal basis for implementing Structured Product is in POJK Number 7/POJK.03/2016, dated January 26, 2016, and POJK Number 6/POJK.03/2018, dated April 19, 2018.

What are the advantages of Market Linked Deposit over time deposits?

The advantage of Market Linked Deposits is that they can provide a higher return than conventional deposits.

What is the placement period of Market Linked Deposit?

The placement period of Market Linked Deposit is 3, 6, and 12 months.

What are the currencies that can be transacted?

The currencies that can be applicable for transactions are USD and SGD.

What is the minimum placement of Market Linked Deposit product?

PenThe minimum placement of Market Linked Deposit products is USD 20,000 (or equivalent).

Can the Market Linked Deposit be automatically renewed?

No, Market Linked Deposit cannot be automatically renewed.

Can customers apply for early withdrawal?

No, customers are not eligible to apply for early withdrawal.

Can the bank conduct early termination of Market Linked Deposit?

Yes, BTN has the right to terminate the Market Linked Deposit early after at least one interest payment.

Is the Market Linked Deposit guaranteed by LPS?

Yes, Market Linked Deposit is guaranteed by LPS. Article 10 of Law No. 24 Year 2004 on Deposit Insurance Corporation states that only current accounts, deposits and savings are guaranteed by LPS.