While global interest rates could be said to be at an all-time low in 2021, rates are starting to increase in 2022. Investors will do well to find ways to ensure that their money can grow to beat inflation. However, interest rates for high-yield savings accounts are still relatively low. In fact, we wrote about 5 reasons why a high interest savings account no longer make sense in 2021.
In this article, we take a deeper look into Syfe Cash+ and examine how different it is from other cash management accounts.
Syfe Cash+ Is A Cash Management Account
On the surface, Syfe Cash+ looks like just another cash management account. Similar to other cash management accounts, Syfe Cash+ enables us to earn a higher interest rate either by taking on slightly higher investment risk and offers us a similar level of liquidity as bank accounts, allowing us to withdraw our funds with no lock-up.
However, unlike bank accounts, we can’t use our cash management accounts to withdraw money from ATMs or make card and cashless payments. Additionally, the fund withdrawals are not immediate and will take about 2 to 4 days to process.
One key difference about cash management accounts is that the funds are not protected under Singapore Deposit Insurance Corporation (SDIC) or Policy Owners’ Protection Scheme. Whereas bank accounts are protected for funds up to $75,000 under the Deposit Insurance Scheme and insurance savings plans under Policy Owners’ Protection Scheme respectively.
Read Also: 6 Investments In Singapore That Provide Guaranteed Principal And Returns
Syfe Cash+ Has A High Projected Rate
Currently, Syfe Cash+ offers an annual return rate of 3.7%, one of the highest among cash management accounts. However, this is subject to change (as are the rates for the other cash management accounts) based on the prevailing interest rate environment and underlying fund returns.
| Cash Management Account | Projected Annual Return | Minimum Initial Deposit | Approximate Withdrawal Time | SRS Applicable? | Underlying Funds |
| Syfe Cash+ | 3.7% | No minimum | 2 to 3 business days | No | 70% LionGlobal SGD Enhanced LiquidityFund SGD Class I (Accumulation) 30% LionGlobal SGD Money Market Fund |
| Endowus Cash Smart Secure | 3.5% to 3.8% | $100 ($1,000 for new Endowus user) | 6 business days | Yes | 50% Fullerton SGD Cash Fund 50% LionGlobal SGD Enhanced Liquidity |
| Endowus Cash Smart Enhanced | 4.1% to 4.4% | $100 ($1,000 for new Endowus user) | 6 business days | Yes | 50% UOB United SGD Fund 50% LionGlobal SGD Enhanced Liquidity |
| Endowus Cash Smart Ultra | 4.9% to 5.3% | $100 ($1,000 for new Endowus user) | 6 business days | Yes | 27.5% LionGlobal SGD Enhanced Liquidity Fund 25% Fullerton Short Term Interest Rate Fund 25% LionGlobal Short Duration Fund 12.5% Nikko Shenton Income Fund 10% PIMCO Low Duration Income Fund |
| FSMOne Auto-Sweep | 3.0% | $50 | 2 business days | No | 35% Fullerton SGD Cash Fund A SGD
25% LionGlobal New Wealth Series – LionGlobal SGD Enhanced Liquidity |
| MoneyOwl WiseSaver | 3.88% | $10 | 1 to 2 business days | Yes | 100% Fullerton SGD Cash Fund |
| Phillip Smart Park (SGD) | 3.75% | No minimum | 1 to 2 business days | No | 100% Phillip Money Market Fund |
| Stashaway Simple | 3.4% | No minimum | 3 to 4 business days | Yes | 70% LionGlobal SGD Enhanced Liquidity Fund 30% LionGlobal SGD Money Market Fund |
| Stashaway Simple Plus | 4.6% – 5.0% | No minimum | 3 to 4 business days | Yes | 20% LionGlobal SGD Enhanced Liquidity Fund 35% Nikko AM Shenton Short Term Bond Fund 45% LionGlobal Short Duration Bond Fund |
Information is accurate as of 13 May 2023
It’s important to remember that for cash management accounts, it’s the underlying funds that ultimately give us the returns we get, rather than the roboadvisors that are paying us. This is unlike a fixed deposit.
Since different roboadvisors construct their cash management accounts differently, the projected yield to investors varies depending on the risk level that is taken. Even for the same company (e.g. Endowus, Stashaway), we can see that they offer different projected returns (and thus different risk levels) for their cash management accounts.
For Syfe Cash+, an observation that we see is that it’s constructed with similar funds as Stashaway Simple. Unsurprisingly, the projected annual return is somewhat similar same as well.
Syfe Cash+ offers no lock-ups, no minimum balance, no management fee and 100% trailer fee rebates. There are no fees to enter nor exit the account and you can freely transfer between your different Syfe accounts as well as withdraw your funds to your bank account. However, there is no current capability to invest your Supplementary Retirement Scheme (SRS) funds with Syfe Cash+.
Read Also: Complete Guide To Cash Management Accounts In Singapore
Currently, Syfe Cash+ has 2 underlying funds. The LionGlobal SGD Money Market Fund (30% allocation) and the LionGlobal SGD Enhanced Liquidity Fund 70% allocation). It’s worth pointing out that when we updated the article on April 2021, there was a third fund – the LionGlobal Short Duration Bond Fund – which was also included in Syfe Cash+. This fund is no longer included. You can read more about why Syfe decided to re-optimisate its portfolio in Jan 2022 here.
Syfe Cash+ 2021 & 2022 Returns
You can find out more about the returns that Syfe Cash+ has generated since it was launched in 2021.
Here are the realised returns for Cash+ in 2022.
Syfe Cash+ has consistently delivered steady returns and was on track to achieve the previously projected returns. For instance, before the increase in projected yield to 2.3%, Cash+ met the previously advertised yield of 1.9%, having generated annualised returns of 1.92% as of 25 September 2022.
Syfe Cash+ Is An Attractive Option To Park Your Funds
Given the relatively high rate of returns and minimal drawdown in times of volatility, Syfe Cash+ appears to be a highly attractive option if you want a fuss-free alternative to high-yield savings accounts.
As the projected returns are not capped, whether you deposit $1,000 or $100,000, you will still receive the return. As this is accrued on a daily basis, you don’t have to limit your withdrawal to a fixed timeframe in order to obtain the returns. While there are potentially other instruments, such as the high-yield savings accounts (at the higher tiers) and insurance savings plans (within the caps) that yield a higher return, Syfe Cash+ will suit those who are comfortable with the potential drawdowns of cash management accounts and who have larger amounts of funds that they wish to keep liquid.
Additionally, if you already invested in other Syfe products as their Equity100 or REIT+, it is a no-brainer to start using Cash+ for the money that you are saving for future use. You can also open an account with Syfe today.
This article was originally published on 20 January 2021 and updated to reflect the latest information.
The post Syfe Cash+: How Is It Different From Other Cash Management Accounts? appeared first on DollarsAndSense.sg.
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