The new Syfe Cash+ portfolio delivers a projected rate of 1.75% per annum on any amount, and has no lock-up period or limits. Unlike high-yield savings accounts, there is also no need to meet any qualifying criteria such as salary credits and / or credit card minimum spends to earn “higher” interest.
With many local banks revising their interest rates lower in recent months, the reward for meeting multiple income and transaction requirements now is a razor-thin yield of around 0.05% to 1.0% per annum (on the popular DBS Multiplier account if you meet income and two category transactions, and applicable only on the first $50,000 in the account).
Fixed deposits may offer slightly better rates than savings accounts (around 0.4% to 1.3% p.a.), but you cannot withdraw your cash before maturity or a penalty may be imposed.
With these constraints in mind, we built our latest cash management portfolio to enable all Singaporeans to grow their savings while still enjoying full access to their funds.
There are no limits to how much cash you can place in your Cash+ account. As mentioned, the projected rate of 1.75% per annum applies on all your deposits. This is not the case for most high-yield accounts. Banks typically cap the amount that can earn high interest – any amount beyond $75,000 generally earns only the base interest rate of 0.05%.
What’s more, there are no Syfe management fees charged for the Cash+ portfolio. This means you get to keep all that you earn on your savings.
The funds within Cash+
Syfe Cash+ holds three funds: a money market fund (MMF), an enhanced liquidity fund (ELF), and a short duration bond fund as follows.
LionGlobal SGD Money Market Fund (30% allocation)
- Investments in high quality short-term money market instruments such as commercial bills and deposits with financial institutions.
LionGlobal SGD Enhanced Liquidity Fund (35% allocation)
- Investments in high quality debt instruments that have a weighted average portfolio credit rating of A and a weighted average duration of around 12 months
LionGlobal Short Duration Bond Fund (35% allocation)
- Investments in Singapore and international bonds, and other high quality interest rate securities with a weighted duration of 1.98 years and a weighted yield to maturity of 2.37% (as of 31 December 2020)
The funds chosen hold only short-term debt instruments issued by high-quality issuers such as the Singapore government or corporations with high credit ratings. As such, these funds are considered safe and extremely low-risk.
Using these three funds, we’re able to provide a projected return of 1.75% per annum. You can also read more about the underlying funds here. This rate is net of all fund expense ratios. Furthermore, we have worked with Lion Global to secure lower fund expense ratios than what retail investors generally pay.
Any rebates we receive from Lion Global will also be credited back to you. Such rebates typically go straight to brokerage platforms that you buy the fund from. However, in order to serve your best interest, Syfe will credit the full rebate back to you.
Given that Syfe charges you no fees for using the platform, all these mean that you get to earn more on every dollar deposited with Syfe Cash+.
Is Cash+ suitable for you?
Cash+ is not a bank savings account. Rather, it is a diversified portfolio of money market and short duration bond funds. As such, you can think of it as a very low risk investment that protects your savings from inflation and gives you higher yield than what you can get from traditional bank deposits.
Whether you’re building up your emergency cushion, saving for an upcoming big purchase, or setting aside funds for a dollar-cost averaging strategy into Syfe’s investment portfolios, Cash+ is the smarter home for your hard-earned money.
You can easily make a deposit or a withdrawal through Syfe’s platform as many times as you prefer. Transfers are free and unlimited and there are no lock-up periods to worry about. What’s more, you’ll earn the projected return of 1.75% per annum on any amount of cash you deposit.
No longer satisfied with jumping through hoops and hurdles to earn tiered interest rates on your savings account? Or want to break free from the long lock-up periods and early withdrawal penalties that fixed deposits impose? Park your savings in Syfe Cash+ instead.
Anyone can open a Cash+ portfolio. You don’t need to invest with us to create one. Simply sign up here to get started. If you use MyInfo, completing your sign up takes less than 5 minutes!
If you’re an existing Syfe customer, simply log in to your account and click on “Add Portfolio” to create your Cash+ portfolio. There are no Syfe management fees charged for Cash+.