Why WiseSaver Shines in Rising Interest Rate Environments

In rising interest rate environments, parking your cash in a liquid and safe cash management account like WiseSaver helps you work your money harder. Here’s why it is one of the best options out there.
26 August 2022

In rising interest rate environments, parking your cash in a liquid and safe cash management account like WiseSaver helps you work your money harder. Here’s why it is one of the best options out there.

Cash is a valuable asset as it gives you the flexibility to weather tough times, or acts as ‘dry powder’ to deploy when investment opportunities arise. While such cash should be kept liquid, keeping all of it in your savings account will not enable you to preserve your spending power. Equally important is to keep it safe so that it is there for you when you need it.

With interest rates going up, many of you might be thinking about how to make your idle cash work harder and squeeze higher returns from it. There are a few options available in the Singapore market, mainly, Singapore Savings Bonds (SSBs), endowment plans, fixed deposits in banks or cash funds like MoneyOwl’s WiseSaver.

Singapore Savings Bonds (SSBs) are a good choice as it has virtually no risk. However, there is limited allocation and it locks you in to current interest rates, which means the interest you earn on your cash is fixed until the SSB matures, which may not be what you want in a rising interest rate environment. In addition, fixed deposits and endowment plans also lock you into current rates. On top of that, if you choose to withdraw your money before maturity, the early redemption may result in financial losses.

MoneyOwl’s WiseSaver

At MoneyOwl, we have curated a cash solution called WiseSaver which combines safety and liquidity, while offering a competitive return. The underlying fund for WiseSaver is the Fullerton SGD Cash Fund, which primarily invests in Singapore Dollar fixed deposits and originated as a treasury management tool for Temasek. It is also used by many corporates and institutions for cash management and has a large fund size of around SGD 1.6 billion. The expense ratio of 0.15% p.a. is also very low and is the only fee you pay for keeping your cash in WiseSaver.

 Benefits of WiseSaver

WiseSaver is perfect for your cash because you will have access to it within 1-2 working days when you need them. It is super easy to set up your account and apply for it and requires only a minimum deposit of S$10.

Moreover, the average duration of the underlying fixed deposits is usually less than a month. This allows the fund managers to regularly adjust and reinvest your monies in higher-yielding fixed deposits, so your returns go up when the interest rate increases.

MoneyOwl’s WiseSaver is a true cash fund that has almost no risk while providing you with liquidity and ensuring that you get a respectable return at the same time.

Don’t just take our word for it. Read on to find out why one of our customers, Mr  Kyith Tan, from Investment Moats, considers WiseSaver as one of the safest cash management solutions in the market.

If you are looking for a safe place to park your emergency funds and earn a higher return than your regular savings account, WiseSaver could be for you.

Consider parking your emergency funds in MoneyOwl’s WiseSaver, a cash management account now at an attractive gross yield of 4.03% p.a.  (5-day moving average as of 26 May 2023).


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