01 December 2021
Note: As of 13 May 2022, StashAway Simple™ has a projected rate of 1.1%. Read about it here.
From 1 December 2021, StashAway Simple™’s projected rate will be 1.0% p.a.
As you may already know, Simple’s returns are closely tied to the prevailing interest rates in the market. Ever since our previous rate change in March, interest rates have been falling. Although they have edged up slightly in recent weeks, they are still far from pre-March levels.
Central banks are signalling an impending increase in interest rates, but the exact timing is still unknown. So, for now, we’ll be adjusting the projected rate for Simple to 1.0% p.a.
The math on the projected rate of returns is quite straightforward: StashAway Simple™ returns are the sum of the amortised yield from the underlying funds, minus fees charged by the fund managers, plus any rebates from the fund managers that are paid out at the end of each quarter.
Your returns with StashAway Simple™ = amortised yield of underlying funds - underlying fund manager’s fees + any rebates from the underlying fund manager
To determine the expected projected rate for Simple, our investment team reviews the past rate and expected rate with the underlying fund managers, and also assesses the economic environment. If there is a change in the projected rate, we’ll notify our clients, just as we’re doing now.
We designed Simple to deliver the best possible return with the lowest possible risk point. While the projected rate of Simple is slightly lower than other options in the market, its risk level is significantly lower. With a StashAway Risk Index (SRI) of only 0.1%, there’s a 99% chance that you won’t lose more than 0.1% of your cash in the StashAway Simple™ portfolio. This makes Simple a practically risk-free cash management option that offers steady returns, ideal for growing your cash in a secure way. You can view Simple’s past returns here.