Best Place to Park Your Cash | Cash Funds 💵

Despite interest rates in the US hovering high (around 5%+) to combat inflation, most local banks are still offering super low interest rates 😢

With GXS previously offering 3.48% P.A. (now reduced to 2.68% P.A.), risk adverse investors can continue to turn to Cash Funds as one option to achieve competitive returns 📈

𝗙𝗶𝗿𝘀𝘁 𝗼𝗳𝗳, 𝘄𝗵𝗮𝘁 𝗮𝗿𝗲 𝗖𝗮𝘀𝗵 𝗙𝘂𝗻𝗱𝘀?

Cash Funds are funds that diversify and invest in a portfolio of institutional bank fixed deposits. They are “tagged” as being the least risky investment from MAS with a potential loss risk of 0.01%

𝗣𝗿𝗼𝘀 𝗼𝗳 𝗖𝗮𝘀𝗵 𝗙𝘂𝗻𝗱𝘀

✅ Flexible with no fixed holding period (unlike your bank deposits)

✅ Lowest risk assessment (e.g., Fullerton SGD Cash Funds did not see a single day of loss since inception)

✅ Higher returns than local banks, comparable rates with fixed deposits

𝗖𝗼𝗻𝘀 𝗼𝗳 𝗖𝗮𝘀𝗵 𝗙𝘂𝗻𝗱𝘀

❌ No locked duration also means interest rates fluctuate and may go lower than the current rate (e.g., you may earn 1% or even 0.01% interest)

❌ Funds are non-guaranteed and not insured

Here are some trading brokerages / platforms that I park my spare cash:

- MoneyOwl

- Moomoo

- POEMS

- Webull

- Syfe Wealth

I prefer to hold my money in brokerages that are MAS-regulated, so that may be one factor that you take into consideration when investing in general.

Save this post if you want more updates on the latest interest rates and where else you can park your cash! 🫡

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