Structured deposit refers to a business product that embeds some financial derivatives (mainly various options) on the basis of ordinary deposit and is linked to the fluctuation of interest rate, exchange rate and index. Or the credit status of an entity, so that depositors can get higher returns on the basis of taking certain risks. According to the bank, structured deposits are financial derivatives embedded in ordinary deposits, such as option futures and forwards.

Structured deposit is a financial product that links investment with interest rate, exchange rate, stock price, commodity price, credit, index and other financial or non-financial items. Simply put, some deposits are designated as time deposits, and the other part is invested.

The biggest difference between structured deposits and ordinary deposits is probably that financial derivatives are embedded, and the deposit business guarantees the principal and interest, while structured deposits can only guarantee the principal of time deposits but not the principal used for financial investment, and structured deposits do not guarantee interest, which is prone to financial investment regardless of losses.

Structured deposits have certain risks. Some funds used to buy wealth management products will lose money, and the loss funds will be borne by the customers themselves. When the amount of loss exceeds the interest income of time deposits, it will cause the phenomenon of structural deposits losing their principal.