Structured Investment Deposit
A structured investment deposit is a combination of a deposit and an investment product. A structured deposit differs from a fixed deposit and may provide higher returns to the investor, when compared to a fixed deposit, but the level of risk undertaken is also higher. This could also mean that the returns are lower if the market conditions are poor, at the time of maturity. The return on a structured investment deposit is dependent on the performance of the financial assets involved.
Structured deposits can potentially give higher returns, provided the investor is willing to take the added risk. Upon maturity, the investor receives the capital amount along with returns. If the deposit is held to the date of maturity, then investors will receive his entire invested capital, irrespective. Like any other deposit, if the money is withdrawn prematurely, the investor may not get his entire initial invested capital back. Structured deposits are suitable for investors who want exposure to markets or assets, which cannot be easily accessed by retail investors.