What is a Discounted Certificate of Deposit?
A medium to long term investment in a security issued by Sterling Bank Plc. DCD is similar to a savings account in that it is insured and thus risk-free. It differs from savings accounts because of its fixed tenor and rate of return.
The note is issued for a tenor of five years with yields of up to 8% p.a. investors in the note pay a discounted value and will receive a bullet payment at maturity for the full face value of the note.
By investing in the DCD, you can grow your dollar savings by over 40% in five years
Your investment returns will be over 3 times higher than U.S Treasury yields and bank deposits
- Offers higher returns than regular deposits
- Multiple investments permmissible and can run concurrently
- A fantastic product for saving towards future school fee obligations, home ownership and vacation.
- Can be used to plan for annuity payments at retirement
- It is an ideal product for saving towards future projects
- Can be operated as a trust fund for children an dependants
- Transferable to third parties
- Can be used as a collateral for either Naira or Dollar facility
- Annual liquidity window
- Hedge against Naira devaluation