NH NongHyup Bank launches KOSPI 200-linked ELD deposit with rates up to 10%

NH NongHyup Bank said April 27 it will launch “Equity-Linked Deposit (ELD) 26-2,” a principal-protected product designed to offer additional returns. 

The one-year deposit uses the KOSPI 200 index as its underlying asset and comes in three types: Stable I, Return I and Return II. 

At maturity, principal and interest are guaranteed. Early termination carries fees and could result in a loss of principal. The deposit can be used as collateral for a loan and is covered by deposit insurance.

The Stable I type has no knock-out feature and pays, for individual customers, an annual return of 2.6% to 3.2% (2.45% to 3.05% for corporate customers) if the index at maturity rises 0% to 5% from its initial level.

The Return I type offers individuals an annual return of 2.6% to 5.6% (2.47% to 5.47% for corporate customers) if the index rises 0% to 30%. If it rises more than 30%, the return is fixed at the minimum rate. 

The Return II type offers individuals an annual return of 2.3% to 10.0% (2.17% to 9.87% for corporate customers) if the index rises 0% to 25%. If it rises more than 25%, the return is also fixed at the minimum rate. All quoted returns are annual, before tax.

Subscriptions will be accepted through May 6 at branches nationwide and via NH All One Bank and NH Smart Banking.

“ELDs are products that guarantee principal at maturity while offering the potential for additional returns,” an NH NongHyup Bank official said, adding the bank will continue to introduce products that meet customer demand.