Offered by online investment brokerages, cash management accounts offer higher returns than traditional bank savings accounts for parking short-term funds. Cash management accounts offer 3.60% p.a. to 4.90% p.a., compared with 0.05% offered by savings accounts from banks in Singapore.
Short-term investors have more options to earn high yields besides bank deposits. However, unlike a bank savings account, a CMS does not have a principal guarantee from the authority or the bank.
What are Cash Management Accounts in Singapore?
A cash management account is a brokerage portfolio investing in bank deposits, money market funds, and quality short-term bond funds. The financial institutions offer various CMAs based on investment allocations and risk acceptance levels.
Below are the main differences between a cash management account and a bank savings account:
| Cash management account | Bank savings account | |
|---|---|---|
| Offering institutions | Robo-Advisors, online brokrages | Banks |
| Interest rate | Higher | Lower |
| Fees | Yes(various depending on terms and brokerages) | No |
| Features | Checking, bill paying services | Debit card, ATM services |
Endowus Cash Smart
Endowus Cash Smart is a cash management account offering higher yields from its portfolios for investors than traditional bank savings accounts.
Pros
- Products for investors of various levels
Endowus offers 3 products of various risk levels: Secure, Enhanced, and Ultra, ranging from the lowest to relatively highest risks. The Secure portfolio provides maximum fund safety but with the lowest returns. The Enhanced portfolio stands in the middle concerning risks and returns. In contrast, the Ultra portfolio gives both the highest risks and returns.
- Higher yields
The returns for 3 products range from 3.6% – 3.9% p.a. for Secure, 4.5% – 4.8% p.a. for Enhanced, and 4.6% – 4.9% p.a. for Ultra. They are all higher than typical deposits in returns and risks. The returns are net of charges.
- No fund lock-up and unlimited transfers
Investors can withdraw anytime or transfer their funds to one of the portfolios without charges.
- Low fees
3 portfolios charge(fund level fees after cashback + management fees) as low as 0.2% for Secure, 0.32% for Enhanced, and 0.35% for Ultra.
- Fund safety
Your invested money is in a trust account under your name with the UOB Kay Hian, the largest broker in Singapore.
- Best investment managers in Singapore
Well-known underlying funds, such as Fullerton SGD Cash Fund, LionGlobal SGD Enhanced Liquidity Fund, Nikko Shenton Income Fund, and PIMCO Low-duration Income Fund, are responsible for managing your money. Therefore, you can rest assured of their performance.
- Multiple funding sources
Besides cash, you can invest with your CPF and SRS money to increase your investment returns.
Cons
- Minimum investment amount
A minimum amount of S$1,000 is necessary to begin your investments. The entry bar is higher other some other brokers in the market.
- Age limitation
Like other financial institutions, you must be at the age to start an account.
- Lower fees for large investment amounts only
You may enjoy lower fees only if you put more money into portfolios.
FSMOne AutoSweep
Fundsupermart.com’s FSMOne AutSweep is a cash management account investing idle cash, such as sales proceeds, bond maturities, dividends, and coupons, into high-yielding investments like money market funds and short-duration funds besides cash.
FSMOne AutoSweep provides 3 currency accounts: SGD Auto-sweep account (3.242% p.a.), USD Auto-sweep account (4.649%), and CNH Aito-sweep account (2.029% p.a.).
Pros
- Discretionary accounts
The account managers of FSMOne AutoSweep accounts invest to maximize clients’ benefits by allocating funds to low-risk quality funds, for instance, LionGlobal SGD Enhanced Liquidity I Acc SGD, United SGD Money Market B SGD, Fullerton SGD Cash Fund A SGD, and cash account.
- No required conversion to other investments
You do not need to sell funds in your account to buy other investments like stocks, bonds, or ETFs. The balance in your FSMOne AutoSweep account is in place for direct investing in other assets, saving trading time and transaction fees.
- No lock-in period, no minimum balance
You can withdraw funds anytime and do not have to maintain a minimum balance to keep it active.
- Simple fee structure
A 0.2% p.a. management fee, collected quarterly, is chargeable to account holders.
- Competitive yield
FSMOne AutoSweep investors can earn a yield of 3.242% p.a. As of Oct 24, 2023, net of fees.
- Convenience
Once you opt-in to the AutoSweep account, the account will be set in to invest cash into investments and earn additional interest for your cash. You don’t have to instruct the company to re-invest the idle cash.
Cons
- No CPF or SRS investments
Only the cash account is eligible to opt-in for the benefit.
- Market volatility
FSMOneSweep is not a capital-guaranteed or insured account, so it is still subject to market fluctuations and capital losses.
- Limited currency options
Fundsuppermart.com offers SGD, USD, and CNH accounts for investments, excluding other currency accounts.
Moomoo Cash Plus
Like other cash management accounts, Moomoo Cash Plus, provided by Moomoo, a Singapore-based online brokerage, offers a secure and convenient place to park their funds and earn higher yields than bank savings accounts to investors.
Moomoo Cash Plus (MCP) invests in safe monetary instruments like fixed-income deposits and short-term government bonds. The notable investments include the Fullerton Cash Fund and CSOP USD Money Market Fund.
Pros
- Competitive market yields
MCP offers a current yield of 4.9% p.a. for clients, higher than most savings accounts. The increase in yields is due to the recent performance of the CSOP Money Market Fund.
- No minimum balance requirements and monthly fees
Moomoo Cash Plus has no subscription, redemption, or platform fees. A minimum investment deposit is as low as SGD0.01 or USD0.01.
- Instant redemption
The balance in an MCP account is available for immediate conversion to other investments on the Moomoo platform.
Cons
- Not a capital-guaranteed product
Investing in the cash management account has no capital guarantee, so the funds are still subject to market changes and price variations.
- No interest rate guarantee
Unlike a fixed deposit, interest rates are prone to changes in the market. The MCP performance may get worse due to a lower market.
- Limited currency choices
The MCP has only 2 currency options, thus excluding other currency investments
Phillip Smart Park
Like other cash management solutions, the Phillip Smart Park(PSP) invests excess cash in the Phillip money market fund SGD, Phillip US Dollar money market fund, and other short-term bond funds, yielding competitive returns to clients ready for other investments or uses. The PSP offers appealing yields of 3.2791% p.a. for the SGD money market fund and 4.9420% for the US dollar money market fund as of Oct 2, 2023, a return more than a typical bank account offers.
Pros
- No sales charges and administrative fees
Phillip Smart Park has no minimum investment requirements or other fees, making it suitable for advanced and beginning investors.
- High liquidity
Funds are available for withdrawal anytime and convertible into other investments from Phillip without delay and withdrawal fees.
- Automatic Investing
Phillip Smart Park is an automatic investment account collecting and investing clients’ funds from stocks and ETFs. Clients need not transfer funds manually into their PSPs each time.
Cons
- Investment product
PSP is not a capital-guaranteed product, subject to market fluctuations or price changes.
- Interest rate changes
Interest rates from PSP may change in response to market conditions and, therefore, are not fixed.
- Low return
Phillip Smart Park invests in low-risk securities like government bills and certificates of deposit. Thus, the returns are low compared to stocks or mutual funds.
- Limited investment choices
Investors have few investment options over cash management funds except for SGD and US dollar money market funds, which will likely draw little attention from advanced investors.
StashAway Simple/Simple Plus
StashAway Simple/Simple Plus are cash management accounts offered by StashAway, a Robo-Advisor based in Singapore, to earn higher yields on idle cash in the accounts. Both Simple and Simple Plus offer higher interest than traditional savings accounts by banks.
StashAway Simple and Simple Plus differ in the projected returns and investment risks. You can see more on the following:
Pros
- Competitive interest rates
StashAway offers Simple’s interest return of 3.6% p.a (net of management fees) and Simple Plus for the interest of 4.7%. (net of management fees)
- Notable investment funds
Simple invests in LionGlobal SGD Money Market Fund (30%) and LionGlobal SGD Enhanced Liquidity Fund (70%.)
Simple Plus focuses on LionGlobal SGD Enhanced Liquidity Fund (20%), Nikko AM Shenton Short Term Bond Fund (35%), and LionGlobal Short Duration Bond Fund (45%.)
- No lock-in period
Investors can withdraw funds in both products anytime without penalty though StashAway suggests a recommended holding period of 12 months for Simple Plus due to short-timespan fluctuations.
- Few investment requirements
StashAway declares no minimum balance, no cap on interest earned, and no withdrawal restrictions.
- Besides cash, investors can use their SRS accounts to invest in Simple/ Simplus portfolios, exploring more investment growth opportunities.
Cons
- No guarantee
StashAway Simple/Simple Plus are not capital-guaranteed products, meaning investors should risk possible capital loss due to market fluctuations, though the risks are low.
- Interest rate changes
Unlike bank deposits, Simple/Simple Plus investors may gain less than projected due to interest rate changes. Besides, these products are not insured by the authority.
- Limited currency option
StashAway only Singapore dollar as the currency for Simple and Simple Plus products. Investors opting for currencies other than the Singapore dollar for the products turn to other companies selling similar products but with multiple currencies.
Syfe Cash+ Flexi
Syfe Cash+ Flexi(SCF) provides a cash management solution to investors to maximize idle cash benefits. The cash account is yielding an interest rate of 3.7% p.a. As of Oct 6, 2023. Syfe+ Flexi offers 2 underlying funds for its portfolio: 1. LionGlobal SGD Money Market Fund (30%) and LionGlobal SGD Enhanced Liquidity Fund SGD Class 1 (Accumulation). You may see the pros and cons of the cash management account:
Pros
- No locked-ins or minimum balance
SCF does not impose a minimum initial deposit or locked-in periods, and investors can withdraw their money anytime the next day without penalty.
- 100% trailer fee rebates
StashAway rebates all commissions from fund managers to clients, meaning investors have minimum investment costs.
- Daily return accruals
Returns accumulate daily, leading to more gains.
- No separation between CDP account and brokerage
It may increase the efficiency in handling administration.
- Complimentary expert advice
StashAway also provides complementary professional advice in helping investment management.
- DCOA strategy
StashAway provides the dollar-cost-of-averaging investment strategy to regular savors besides lump-sum investors.
- Automatic investing
Once enrolled in the program, investors can participate in auto-investing of their funds from sources like ETFs and coupons from bonds from Syfe’s investment family.
Cons
- Limited investment choices
Unlike other cash management accounts, Syfe only provides 2 funds for investments, making advanced investors less likely to use the service. Besides, only one currency option is available, making the investment option less attractive.
- No capital guaranteed
Syfe Cash+ Flexi is an investment product, meaning investors’ capital is not guaranteed and may suffer investment loss.
- Interest rate changes
The interest rate is not the most competitive compared with other cash management products and is still subject to market changes.
Best Cash Management Accounts in Singapore
Below is a comparison of the best cash management accounts in Singapore:
| Brokerages | Yields | Min. inv. amt. | Fees | Liquidity | Underlying funds | Risks |
|---|---|---|---|---|---|---|
| Endowus Cash Smart | Up to 4.90% p.a. | 0 | 0 | Daily | Fullerton SGD Cash Fund, LionGlobal SGD Enhanced Liquidity Fund, Nikko Shenton Income Fund, and PIMCO Low-duration Income Fund | Low |
| FSMOne Auto Sweep | Up to 4.649% p.a. | 0 | 0.2% p.a. | Daily | LionGlobal SGD Enhanced Liquidity I Acc SGD, United SGD Money Market B SGD, Fullerton SGD Cash Fund A SGD | Low |
| Moomoo Cash Plus | Up to 4.90% p.a. | 0 | 0 | Daily | Fullerton Cash Fund and CSOP USD Money Market Fund. | Low |
| Phillip Smart Park | Up to 4.942% p.a. | 0 | 0 | Daily | SGD money market fund and the US dollar money market fund | Low |
| StashAway Simple | Up to 3.60% p.a. | 0 | 0 | Daily | LionGlobal SGD Money Market Fund(30%) and LionGlobal SGD Enhanced Liquidity Fund(70%.) | Low |
| StashAway Simple Plus | Up to 4.70% p.a. | 0 | 0 | Daily | LionGlobal SGD Enhanced Liquidity Fund(20%), Nikko AM Shenton Short Term Bond Fund(35%), and LionGlobal Short Duration Bond Fund(45%.) | Low |
| Syfe Cash+ Flex | Up to 3.70% p.a. | 0 | 0 | Daily | LionGlobal SGD Money Market Fund(30%) and LionGlobal SGD Enhanced Liquidity Fund SGD Class 1(Accumulation) | Low |
For Whom are Cash Management Accounts suitable in Singapore?
Endowus Cash Smart – Best for investors opting for more investment choices and safety
Endowus Cash Smart is designed to cater to investors sheltering their funds for interest and cash for urgent and short-term needs. The 3 types of portfolios comprise highly liquid funds investing in money market funds and short-duration bond funds.
Furthermore, the probability of loss is minimal compared with other investment funds. Endowus Cash Smart is suitable for investors opting for more investment choices regarding fund safety and higher yields rather than bank deposits.
How to sign up
2 ways to open an account with Endoeus: Web and mobile app. The procedures are simple and easy, as you need only your ID information to create an account. You should take 8 to 10 minutes to go through the process and wait 3-5 business days to confirm a successful account from Endoeus.
FSMOne AutoSweep – Best for Customers of Fundsupermart.com
FSMOne AutoSweep is an excellent solution for investors parking their funds in a place for short-term profits and opting for flexible withdrawals at any time without any penalties.
Besides, beginning investors may welcome the investment as a start-up for further sophisticated investing. Customers of Fundsupermart.com may shelter and use their funds in the AutoSweep accounts to convert into other investments in the company without delay and transaction fees.
How to sign up
Technology makes the sign-up process easy. All you need is to visit the FSMOne website, look for the Auto-Sweep Account section, and opt-in to the AutoSweep account to begin earning higher yields.
Like other account opening requirements, you must be 18 or above. The cash management account is subject to market fluctuations.
Moomoo Cash Plus – Best for new investors opting for additional rewards
Moomoo Cash Plus offers clients investment benefits and flexibility. Account holders can earn additional yields while waiting for market opportunities. A yield of 4.90% (not guaranteed) is attractive enough to appeal to short-term investors and beginners to use the cash management account for other investment goals.
Moomoo offers extra benefits to new users by increasing the yield of MCP to 5.8% p.a. However, the guaranteed yield bonus lasts for a maximum of 30 days and amounts up to SGD80,000. All rewards are payable in SGD only. Besides, Moomoo will offer you an extra SGD5 if you invest more than SGD100 in an MCP.
How to sign up
You have 2 options to open an MCP: its official website and app. Like other online brokerages, the procedures are simple and fast to navigate on the interface of its web or app.
Phillip Smart Park – Best for investors opting for a reputable brokerage
Phillip Securities, a well-known stock brokerage in Singapore, is a brand name for security and traditional business. Investors should have little doubt over its pledge to business strategies and performance. However, Phillip Smart Park may not be a fit for advanced investors seeking multiple products and aggressive clients looking for higher returns regarding investment options.
How to sign up
Like other Fintechs, you can open a Poems account before subscribing to the Phillip Smart Park portfolio. To open an account, follow the instructions on the web page or app step-by-step with your personal information ready, like ID Card, address proof, and bank account.
StashAway Simple/Simple Plus – Best for time-committed investors
StashAway offers 2 risk-level products comprising low-risk returns from Simple and higher returns from Simple Plus (higher risk). Investors have more options in parking their funds for higher returns based on their risk appetite. The portfolios may cater from beginners to advanced investors.
How to sign up
2 ways are available for account opening: official website and mobile app. Whatever options you use to open an account with StashAway, they provide users with a good experience through their user-friendly interface of advanced technology.
Syfe Cash+ Flexi
Besides benefits offered by other brokerages, Syfe offers the dollar-cost-of-averaging regular investment strategy to entice more investors. However, investors may not be interested in the account with a single currency option and limited investment choices.
Lower interest yields may draw little attention from the market.
How to sign up
Like other brokerages, Syfe provides straightforward application procedures via its official website and mobile app. Investors can have a short time to create an account and begin investing.
Final Thoughts
An investor has one more option for earning through a cash management account while parking his funds temporarily. Some accounts offer close to an appealing interest rate of 5% p.a. Regular savors can use the account for regular investments via the dollar-cost-of-averaging strategy to increase income.
Beginners can start to learn from the low-risk investments. However, a cash management account is an investment product with market and interest risks.
Key Takeaways
- The 6 best cash management accounts in Singapore: Endowus Cash Smart, FSMOne AutoSweep, Moomoo Cash Plus, Philip Smart Park, StashAway Simple/Simple Plus, and Syfe Cash+ Flex.
- Most of them have few to no investment requirements.
- The products have no capital guaranteed and are subject to interest rate risks
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