In many structured notes, the investor sells an option to the issuer through the note, and the premium received for it makes the interest higher. In return, if market values move against the investor, the interest may fall or the note may be redeemed for less than the principal.
Repayment of a structured note depends not only on the index or rate of the embedded derivative but also on the issuer's credit. A deposit combined with derivatives is called a structured deposit, and a loan combined with derivatives is called a structured loan. Together with structured notes, they are called structured products.