This unique product is suitable for clients who are willing to link the interest of their short-term (typically 3- or 6-month) deposits to certain conditions, thereby creating an opportunity to achieve a significantly higher return. The rate is a function of the extent to which the value of a widely recognised and accepted reference instrument (e.g. the Dow Jones Index, Eurostoxx 50, the EUR/USD exchange rate or the price of oil or gold) changes during the tenor of the deposit.

What is a Market Linked Deposit?

Market Linked Deposits are deposits denominated either in HUF or in foreign currency with a fixed maturity, but a floating interest rate. The interest rate is a function of the performance of a given reference instrument during the tenor of the deposit * The minimum amount of the deposit is HUF 3 000 000 (although this amount may differ for certain offerings).

Why choose the Market Linked Deposit?

As a customer, you are always looking to earn the highest possible rate of interest on your money, but since time deposits represent no risk, they generally offer a correspondingly low rate of interest.

By contrast, Market Linked Deposit, offered exclusively by Citibank, provides the opportunity for our customers to achieve potentially higher rates of interest. The bank provides the opportunity without risking the principal of your deposit and there are no related bank charges or fees. We hereby draw your attention that effective September 1st 2006 the interests of deposits will be subject to interest withholding tax.

How does this form of deposit work?

Market Linked Deposits are deposited at our bank in a similar way to conventional deposits. At maturity you can be sure of getting back the principal of your time deposit, and the agreed minimum interest rate is also paid at this time. Unlike conventional investment instruments, however, with this kind of deposit the yield attained varies. The actual interest rate depends on the performance of the market variable to which the interest rate has been linked during the term of the deposit. It is important to note that the deposit may not be interrupted, broken or reduced during the term of the deposit.

What market variables can Market Linked Deposits be linked to?

To the cross rate of any currencies (e.g.: EUR/USD, GBP/USD), to the international closing price of exchange traded commodities (gold, silver or oil), to official stock market indices (Dow Jones, Eurostoxx 50, DAX, FTSE 100 or Nasdaq) or to the price of individual stocks (e.g. the New York price of Matáv).

Foreign nationals may open deposits pursuant to the relevant statutory regulations.

*Effective Interest Rate: 0.1% - 15% (indicative only - may differ in accordance with the specific offering).

The above advertisement does not constitute either a public announcement or an offer. For further information please call our CitiPhone Banking telephone customer service or visit any Citibank branch.