MIYAZAKIBANK INFORMATION

The Miyazaki Bank, Ltd.
Registered Financial Institution
Director-General, Kyushu Local Finance Bureau (登金) No. 5
Member of the Japan Securities Dealers Association

These pages include information about foreign currency deposits, investment trusts, national bonds and insurance instruments. Please read carefully. For more information about each instrument, please contact the branch office nearest you.

Foreign Currency Deposits

Exchange Fees

Fees are charged for exchanging yen for a foreign currency (deposits) and for exchanging a foreign currency for yen (withdrawals). Fees of 1 yen per leg and 2 yen per round trip for each dollar of a US dollar transaction and 1.5 yen per leg and 3 yen per round trip for each euro of a euro transaction are charged. The Bank’s after fee rates, the TTS rate and the TTB rate, are applied to deposits and withdrawals, respectively.

Investment Risk

Foreign currency deposits involve exchange risk. Because of currency changes, there is a risk that the principal and interest you receive in a foreign currency may fall short of the sum you have paid in yen into the Bank for your foreign currency deposit. In other words, currency exposure involves a risk to principal on a yen basis.

Even if there are no exchane rate fluctuations, the principal and interest you receive in a foreign currency may still fall short of the sum you have paid in yen into the Bank for your foreign currency deposit because of the round trip exchange fees (2 yen for one US dollar and 3 yen for one euro). In other words, exchange fees involve a risk to principal on a yen basis.

Cooling off

As far as foreign currency deposits are concerned, there is no mutatis mutandis application of the provisions of Article 37-6 (so-called cooling off) of the Financial Instrument Exchange Law, as stipulated in Article 13-4 of the Banking Law.

Other points to note

  • In principle, term deposits in foreign currencies cannot be closed midterm.
  • Foreign currency deposits are not covered by deposit insurance.
  • The non-tax system for small savings does not apply to foreign currency deposits.
  • Service hours are 10:00 a.m. to 3:00 p.m. for US dollar deposits, and 11:30 a.m. to 3:00 p.m. for euro deposits, on the Bank’s business days.

Investment Trusts

Fees

You may have to pay fees including sales commissions (varying from instrument to instrument) and trust charges. For details, please read carefully the prospectus, supplementary documents to the prospectus, other documents to be issued before contract, and other materials for customers.

Investment Risk

Investment trusts involve the risk of loss due to price fluctuations. Risks vary from instrument to instrument. Please read carefully the prospectus, supplementary documents to the prospectus, other documents to be issued before contract, and other materials for customers.

Cooling off

As far as investment trusts are concerned, there is no application of the provisions of Article 37-6 (so-called cooling off) of the Financial Instrument Exchange Law.

Other points to note

  • Unlike deposits, there is no guarantee of principal and interest for investment trusts.
  • Investment trusts are not covered by deposit insurance.
  • Investment trusts sold by banks are not covered by the investor protection fund.

Japanese Government Bonds

Fees

If you purchase Japanese Government bonds by trading directly with the Bank, all you have to pay is the trade price.

Investment Risk

A Japanese Government bond is a safe instrument because the government of Japan pays the principal and interest. However, there is a risk of delay in the payment of the principal and interest or insolvency, due to possible damage to the credibility of the Japanese government, which issues the bonds.

Cooling off

As far as Japanese Government bonds are concerned, there is no application of the provisions of Article 37-6 (so-called cooling off) of the Financial Instrument Exchange Law.

Other points to note

  • Depending on the market interest rate, there is a risk to principal in the event of redemption prior to maturity.
  • Since Japanese Government bonds are not deposits, they are not covered by deposit insurance.
  • Japanese Government bonds sold by banks are not covered by the investor protection fund.

Insurance Products

Fees

You may have to pay fees for concluding a contract, for cancellation, or for management. For details, please read carefully the conditions of insurance, guidebook, other documents to be issued before contract, and other materials for customers.

Investment Risk

Variable annuity insurance contracts involve the risk of loss due to price fluctuations. A flat-rate pension insurance contract denominated in a foreign currency is subject to the risk of loss due to currency fluctuations. Risks vary from instrument to instrument. Please read carefully the conditions of insurance, guidebook, other documents to be issued before contract, and other materials for customers.

Other points to note

  • Since insurance products are not deposits, they are not covered by deposit insurance.
  • Depending on asset management performance, cash surrender value, pension value at retirement age or the pension amount available for a variable annuity may fall short of the value of premiums paid in.
  • Depending on the operating conditions or assets of the insurance company, insurance payments, pensions or benefits may be reduced.