85% of Singaporeans keen to explore cash equivalent options with higher yield

This is despite their little exposure to similar money market products before.

Cash equivalent options with higher yield are the most popular amongst 325 Singaporeans surveyed, with 85% eager to explore despite their non-exposure to similar money market products before, according to a survey of investment platform Endowus.

The types of products most commonly cited were fixed/time deposits (29%), Singapore savings bond (27%), and money market funds (21%). Meanwhile, liquidity (62%), higher interest rates (55%), and capital preservation (32%) were reported as the top three motivators in choosing the current method of managing cash.

Respondents also mentioned that the top three factors for choosing a cash management solution would be low fees (76%), no lock-up (73%) and higher yields (63%).

To try and answer these expectations, Endowus has launched a fully-digital cash management offering, Cash Smart, which will allow Singapore investors to earn a projected return of 1.1% to 2.2% per annum. This is said to be one of the highest in the industry and at least 10 times higher than typical bank deposit accounts.

Endowus Cash Smart allows Singaporeans to conveniently grow their cash whilst still remaining liquid, with no lock-ups, daily accrual on interest, and withdrawals at any time.

Cash Smart’s portfolios are made of diversified cash, money market, and short duration bond funds, which are managed by Fullerton Fund Management, Lion Global Investors, and UOB Asset Management. These funds invest in a combination of institutional fixed deposits, Singapore government bonds, and hold-to-maturity short duration bonds.