Shinsei Bank [ Powered Teiki V ]

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5years Interest rate for First year interest3.0% p.a. Second through Fifth year 10-year Japanese government bond + interest1.0% p.a.

* After maturity, an interest rate on Yen or US$ savings will apply and the above interest rate will not apply.
* The interest rate is as of August, 16 2007 and is subject to change due to market circumstances.

Attractive features

Point1 : About interest rate
Interest rate is 3.0% p.a.(2.4% after tax) for the first year. From 2nd year to 5th year, the interest rate is annually reviewed to link to the yield on 10-year Japanese government bond. You will receive interest in Yen every year until maturity.

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Point2 : About principal at maturity
Currency of receiving principal at maturity is Yen or US$ depending on a foreign exchange rate two business days prior to maturity date. The Bank is entitled to convert a customer's receivable currency from Yen to US$ under a certain condition.

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		If Yen is stronger than a strike rate two business days prior to maturity date, yen principal will be exchanged to US$ at strike rate and will be credited into US$ savings account. In this case, the exchange rate is unfavorable compared with a prevailing market exchange rate.

		In case receivable currency at maturity is US$ and you wish to exchange US$ to yen, Shinsei Bank`s exchange rate (TTB) including an exchange commission (¥ 1 for one way) shall apply. Therefore even without exchange rate fluctuation, original yen invested amount may not be guaranteed.

		Even if two business days prior to maturity date yen is weaker than that of your deposit transaction date, you are not able to expect any exchange gain.

		Cancellation before maturity is not permitted. In this case, your principal is not guaranteed. Deposit may fall significantly below your original yen amount depending on market environment. In case receivable currency at maturity is US$ and principal is credited to US$ savings account, it is not covered by the Deposit insurance.

		US$ in cash is not available. Additional handling fee is required for US$- denominated remittance.

Please understand the product description well and confirm
that the transaction amount does not exceed your excess fund.

About interest rate

		*Interest rate is 3.0% p.a.for the first year (2.4% p.a. after tax)* Deposit is made in Yen at interest rate of 3.0% p.a. (2.4% p.a. after tax) for the first year.

		From 2nd year to 5th year, the interest rate is annually reviewed to link to the yield on 10-year Japanese government bond. You will receive interest in Yen every year until maturity. Variable interest rate to be reviewed annually (before tax) Yield on 10-year Japanese government bond (basic interest rate) + 1.0% p.a.(0.8%p.a. after tax) From 2nd year to 5th year, the interest rate is reviewed annualy to link to the yield on 10- year Japanese government bond, adding an interest rate of 1.0% p.a. (0.8% p.a. after tax). * The yield on the 10-year Japanese Government Bond (the benchmark rate) is the average bid yield calculated and announced by the Japanese government based on the average bid price in the auction for “(10 year) interest-bearing government bonds” (10-year fixed-rate JGB) issued in the month in which the first date of the interest calculation period falls every year from the second year onwards.

		*You will receive interest in yen* every year.** In a year, you will receive interest at 3.0% p.a. (2.4% p.a. after tax) for the first year. Also, every year you will receive interest in Yen at variable interest rate which is annually reviewed.

Structure of Powered Teiki V

* The principal is paid in Yen or US dollar at maturity to the savings account. US dollar in cash is not available. We charge a commission on foreign currency transfers.

In case you receive principal in US dollar at maturity, Yen equivalent of US dollar may be less than the original Yen principal before it was converted to the US dollar
In case receivable currency at maturity is US dollar and you wish to exchange US dollar to Yen, Shinsei Bank's exchange rate (TTB/TTS) including the exchange commission shall apply. Therefore the Yen equivalent of a foreign currency deposit may be less than the original Yen principal before it was converted to the US dollar , even there was no exchange rate fluctuation.

About the risk in case you wish to receive principal in USD

For example, in case the conditions for a deposit of 5 million yen are that "the strike rate = the base rate (120
yen per one dollar)" and "the exchange rate at maturity = 116 yen per one dollar " if you wish to convert the principal credited to your USD savings deposit account immediately to Yen (TTB rate = 115 yen per dollar ), you will receive approximately 4.79 million yen.

Cancellation before maturity

Cancellation before maturity is not permitted. If we find it necessary to accept cancellation before maturity, we will cancel the deposit and the remaining amount which we will deduct deposit restructuring amount and other costs occurred to the bank during cancellation day to maturity day, which is calculated by our original formula, will be credited to your PowerFlex Yen Savings account. Please note that in this case, your principal is not guaranteed. The deposit restructuring amount will be calculated considering two factors stated below.

1. Value of currency option at the time of early withdrawal

2. Difference between the applicable rate on the deposit and the the market interest rate (of the deposit currency) corresponding to the remaining period at the time of the early withdrawal

*Generally speaking, the higher the exchange rate for the deposit currency, the shorter the duration period from the time of deposit, and the lower the yield on Japanese government bond , the higher the cost of cancellation.
*Even if withdrawal is made immediately after effectuating the deposit, the costs associated with the restructuring will result in cancellation cost of roughly 9%～10％ of the principal.

Related Links & Information

Minimum deposit

Online	Phone	Branch
100,000 yen or more Untill September 27 (Thu) 10 P.M.	3,000,000 yen or more	3,000,000 yen or more

Reminder

product description ( Japanese only)

Online banking

The English translation used in this page are intended solely for customer convenience, and shall be used as for reference only. Should there be any discrepancy between the Japanese and the English text, the Japanese text shall take precedence.

About Powered Teiki V (linked to the yield on Japanese government bond)

The above interest rate is as of August 16, 2007. Depending on market conditions, Shinsei Bank may change the applicable interest rate or stop offering this product.
Currency option is involved for Powered Teiki Ｖ and in case yen is weaker or the same as the "Strike rate" two business days prior to the maturity date, receiving currency of principal will be yen. In case yen is stronger than "Strike rate", principal of yen will be converted to US dollar at "Strike rate". Each receiving principal will be credited to Yen or US$ savings account.
The strike rate is decided on the next day of the end of the offering period Tokyo time 3p.m. It is possible to confirm the strike rate on the confirmation letter later.
Interest rate is 3.0% p.a. for the first year (2.4% p.a. after tax). From 2nd year to 5th year 1.0% p.a. (0.8% p.a. after tax) is added on the interest rate which is annually reviewed to link to 10-year Japanese government bond.
- * The yield on 10-year Japanese government bond (the benchmark rate) is the average bid yield calculated and announced by the Japanese government based on the average bid price in the auction for "(10 year) interest-bearing government bonds" (10-year fixed-rate JGB) issued in the month in which the first date of the interest calculation period falls every year from the second year onwards.
Cancellation before maturity is not permitted. If we find it necessary to accept cancellation before maturity, we will cancel the deposit and the remaining amount which we will deduct deposit restructuring amount and other costs occurred to the bank during cancellation day to maturity day, which is calculated by our original formula, will be credited to your Power Flex Yen savings account. Please note that in this case your principal is not guaranteed.
In case receivable currency at maturity is US dollar and you wish to exchange US dollar to yen, Shinsei Bank's exchange rate (TTB/TTS) including the exchange commission shall apply. Therefore yen equivalent of a foreign currency deposit may be less than the original yen principal before it was converted to the US dollar , even if there was no exchange rate fluctuation.
In case you receive a principal in US dollar at maturity and later convert it in yen, principal may be below the original deposited yen amount depending on the market exchange rate.
In case you receive in US dollar at maturity, deposit is not covered by the Deposit insurance.
Foreign currency in cash is not available. We charge a commission on foreign currency transfers.
Brochures are available at our branches.
Only individual customers with PowerFlex accounts is available.

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