We see cash as a practical and accessible means of investment that fulfils everyday financial demands. Choose a deposit account that makes cash readily available, or a fixed-term account with potentially higher returns.

Cash plays an important part in your total wealth strategy. As an investment it helps diversify your total portfolio and can help protect your assets by limiting volatility during turbulent times. However, that does not mean that cash assets should just sit in the bank: all your assets should be placed to maximise their potential return and our cash offerings reflect this. Alongside standard deposit accounts we also offer fixed term deposits, life wrapper deposits and dual currency instruments. By using all the tools available, you can earn potentially higher returns than typical deposit accounts.

Fixed-term deposits
A fixed-term deposit can provide a higher return than traditional deposit accounts if you are looking to deposit cash for periods of one month to one year. If your circumstances change and you need to withdraw funds from the deposit before the agreed maturity date then penalties will apply. Your Relationship Manager will advise you of the precise cost prior to breaking the deposit although if there is a significant period of time between requesting this quote and then deciding to break the deposit, the penalties may rise if interest rates generally have risen during this period.

Life wrapper deposits
Working with respected offshore insurance companies HSBC Private Bank has expanded its sterling cash management solutions to include an investment that can deliver enhanced returns compared to conventional cash management solutions currently available. This is achieved by holding your cash deposits indirectly within an offshore investment bond (the 'Bond') structured as an open-ended whole-of-life assurance contract.

All life wrapper deposits are subject to credit default risk if the deposit taker should default. In the case of a fixed term deposit your investment may be subject to inflation risk.

The Bond offers access to a range of banks and building societies with competing interest rates over a variety of terms.

Dual currency instruments
A dual currency instrument is of particular benefit if you need to convert the value of your instrument to another currency at the end of the fixed term. These instruments can also be useful if you have a future foreign currency need as it offers the potential for a higher interest rate than traditional fixed term instruments to compensate for the inherent currency risk.

A dual currency instrument provides an enhanced rate of interest in return for making a fixed-term deposit and for taking some currency risk. Depositors receive a return that comprises interest on the deposit plus a premium received from the sale of a put or call currency option. Generally, if you set the conversion rate close to the prevailing spot rate, you are exposed to more potential risk and will be offered a higher coupon.

However, as the instrument is set for a fixed term you cannot convert or receive the deposit back early without paying breakage costs. If the exchange rate is weaker at the end of the deposit term your deposited amount might have to be converted at a less favourable exchange rate which could lead to a loss greater than the value of the coupon received. This does not constitute a 'hedge' of your currency requirements as conversion is not guaranteed upon maturity.

With 75 offices in 60 countries and territories worldwide, HSBC's foreign exchange teams have an extensive geographic footprint. This, combined with its expertise in many local markets, brings valuable market insights, which can enhance your foreign exchange dealings. For example, we can access the expertise of HSBC's many treasury centres across the Asia-Pacific. These centres enjoy excellent connections with key participants and decision makers in the Asian financial markets.

HSBC also benefits from one of the largest foreign banking networks in Latin America while the emerging European, Middle Eastern and African markets are a strategic area of growth. Importantly, HSBC's services are not limited to core markets only. HSBC's global footprint and historic background mean that we are equally well placed to serve your foreign exchange needs in emerging markets.

It is important to note that the capital value of, and income from, any investment may go down as well as up and you may not get back the full amount invested.

We recommend that you consider investments held with us within the overall context of your overall wealth and maintain prudent diversification across asset classes, products and counterparties.