• Kyodo News


Shinsei Bank said Wednesday it has prepared new fliers for time deposits in response to an order from the Fair Trade Commission to eliminate earlier handbills distributed between August and October.

The Powered Teiki (fixed term) Plus structured deposit instrument offers four plans for investors, with each plan offering a different interest rate on maturity.

In the earlier fliers, 3.19 percent — the highest rate of the four plans — was mentioned in large print, while the three lower rates were not printed at all.

The FTC concluded that the advertisement could mislead consumers and hinder fair competition for winning depositors, according to Shinsei Bank.

Critics warned that the deposit instrument offers higher interest rates than regular fixed-period deposits but carries higher risks because the rates hinge on foreign-exchange rates at maturity.

The antimonopoly watchdog’s elimination order was the first to be issued to a bank.

The new fliers show four basic interest rates and other information, including benefits and the risks of the instrument, Shinsei Bank said.

The bank also said it will step up its in-house system to check the validity of its advertisements.

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