Introducing StashAway Simple™, Our Cash Management Portfolio
I started StashAway back in 2016 when I couldn’t find a bank or fund manager that would invest my savings the way I knew was possible – personalised, transparent, inexpensive, and without unnecessary lock-up periods.
Our team set out to provide individuals with the tools and experience their money needs, and we started by offering intelligent investment portfolios of varying types and risk levels. Now, we’re enhancing yet another aspect of your personal financial plan: your cash management.
I’m excited to announce StashAway Simple™, our cash management portfolio.
With StashAway Simple™, you can earn a projected rate of 3.6% p.a. on any amount, without any of the hoops banks make you jump through to get a return on your savings. These include:
- credit card, GIRO or investment requirements;
- minimum balances or maximum amounts eligible for earnings;
- tiered earning structures;
- lock-up periods; or
- any other confusing conditions.
And, did I mention that we don’t charge you any management fees for the portfolio? There’s really no catch!
So whether you haven’t gotten around to investing with us, or you’ve been investing with us for years, now you have another wealth management tool to maximise your long-term wealth.
Meet StashAway Simple™
✔ No minimum balance
✔ One projected rate for whatever your balance is
✔ No credit card, spending, or investment requirements
✔ No lock-up period
✔ Unlimited withdrawals and transfers
✔ Management fee of 0.15% p.a.
You won’t get this with any bank, we promise. It’s cash management, like it should be.
Who is StashAway Simple™ good for?
Everyone. Cash management should be part of any well-rounded financial plan, no matter your net worth and risk tolerance. Having a low-risk, rate-accruing cash management strategy protects your money from losing too much of its value to inflation. It also protects the money you’ll need for any upcoming big purchases from market volatility (the last thing you’d want before buying a house is for your investments to drop with the markets).
You can use Simple to prepare for your short-term goals, such as:
- getting ready to make a downpayment on a property;
- setting aside money for an emergency fund; or
- waiting to invest your money into any of our investment portfolios.
How is StashAway Simple™ different from other cash management solutions?
The cash management space in Singapore is messy with restrictions and fine print that make growing cash tedious at best. Ironically, in Asia, where saving is so deeply ingrained in many of its cultures, cash management options benefit the institutions that structure them more than their own clients.
Simple doesn’t make you jump through hoops
Most savings accounts have confusing tiered interest rates that require customers to satisfy multiple criteria, including salary credits, credit cards, and minimum monthly spending.
Simple doesn’t lock up your funds
Fixed deposit accounts currently have rates that range from 0.5% to 1.3% p.a., but lock up deposits for up to 36 months.
Simple is ultra-low risk
While other cash management offerings might advertise higher projected returns, they could be investing in funds that take more risk with your cash.
We designed StashAway Simple™ to keep your cash secure even in the most volatile market conditions. Simple is invested in a money market fund and enhanced liquidity fund, which have stable net asset values. We don’t use short-duration bond funds in Simple because their fluctuating net asset value exposes your cash to risk.
How risky is StashAway Simple™?
StashAway Simple™ is an investment, so there is a level of risk, but it’s incredibly low. We designed it to be an ultra-low risk cash management portfolio. The underlying funds of StashAway Simple™ are a money market fund and an enhanced liquidity fund (a type of ultra-short duration bond fund). We chose these funds because they both have predictably stable NAVs, which means your cash isn’t overexposed to market conditions.
In fact, StashAway Simple™ hasn’t seen a single month of negative returns since its inception in 2019, no matter the interest rate and economic environment.
Will the projected rate always be 3.6% p.a.?
No, it can change as the economy grows or contracts. Our investment team reviews Simple’s projected return with the underlying fund managers, and we update the projected rate periodically to maintain the highest possible rate within a given economic environment. We will always notify you ahead of a change in the projected rate.
Can I open Simple without investing in StashAway’s Investment Portfolios?
Yes! You don't have to invest with us to open a Simple account. Your balance in your Simple portfolio isn’t included in your AUM when we calculate your investment portfolio management fees.
Can I deposit my SRS funds into Simple?
You can have up to 2 Simple portfolios — one that you can fund with your SRS funds, and one that you can fund with your personal bank account.
How do I earn the projected 3.6% p.a. rate with Simple?
Transfer. That’s it. No GIRO, credit cards, salary credits, investment requirements, dances, or hoops.
How Simple could perform in the current market environment
Simple will continue to benefit from rising interest rates. Here's why:
Simple’s underlying funds have a very short duration, which means that its funds mature relatively quickly compared to long duration funds. Simple’s funds therefore roll over frequently to repay their principal and coupon.
Simply put, this short duration allows Simple to take advantage of increasing yields, and allows us to increase its projected returns. It’s also why we expect Simple’s rate to continue rising above 3%+ p.a. in the next few months.
Based on market conditions as of 8 December 2022. Read how Simple Plus could perform.
This article was last updated on 24 April 2023 with Simple’s current projected rate of 3.6% p.a.
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