[Review] Touch ‘n Go eWallet GO+ Micro-Investment Feature
GO + was a feature recently launched on Touch ‘n Go eWallet, having been approved by the Securities Commission Malaysia (SC) to operate as a Recognized Market Operator (RMO) in January 2021. It is basically about a low risk investment that allows users to earn daily returns with their balance in the app.
Together with Principal e-Cash, a money market fund managed by Principal Malaysia, they aim to provide investors with liquidity and income.
In determining what type of investor I am, I’m all for stable, low-risk investments with no time or energy to track my gains / losses. That’s why I threw a few thousand Ringgit into my StashAway Simple account (think of a fixed deposit with no commitment) to earn interest without too much effort on my part.
So by the time GO + launched with a minimum reload of 10 RM, most of my e-wallet balance went there. Granted, it was only RM20 because I had barely used the app initially, but felt like I had nothing to lose anyway.
But I had little to gain
What attracted me to GO + was its high liquidity aspect. Not only would I potentially make daily returns, but I could also cash out whenever I wanted or spend it straight at tolls and accept merchants. This means that if I tried to pay for something with the e-wallet and didn’t have enough funds, it would automatically be taken out of GO +.
Cashing does not cost anything either. There are no penalties or withdrawal fees – at least for now, according to its FAQ. However, there are management and trustee fees of up to 0.45% and 0.3% per annum each.
Of course, such flexibility has its own drawbacks. First of all, you won’t earn much on GO + as its expected return is only 1.61% (at the time of writing). When I started 5 days ago it was 1.47%, and I only earned RM0.0029 in income after cashing out the initial RM20.
Due to these low returns, GO + should not be compared to a fixed deposit where cash is blocked for a stipulated length of time and cannot be withdrawn. Instead, it should be compared to the interest you would earn on a general savings account or checking account at the end of the year.
GO + is actively managed by Principal Malaysia, where investments are made through a combination of cash (at the bank), placement of deposits, money market instruments and debt instruments. This is according to their product overview sheet which also indicated that investments are generally placed for short durations of high quality in order to provide the high liquidity offered.
It’s not much, but it’s honest work
Once you have activated GO +, its icon will be displayed on the app’s home page just below your e-wallet balance.
Inside there will be cash out and cash out options, where you can use your e-wallet balance or add funds from your bank account. Daily earnings will be credited to your GO + account the next day for Cash In transactions made before 4 p.m.
To cash out, you will have the same options as the old one. If it is your Touch ‘n Go e-wallet, the money will be credited instantly. If it is in your bank account, the money will be credited after 1 working day, if the request is made before 4 p.m. As mentioned earlier, if you use your GO + funds to facilitate payments, the withdrawal amount will be debited from the merchant immediately.
For me, GO + essentially gives me an incentive to keep funds in my otherwise underutilized e-wallet. It won’t earn me much, but it does make me happy knowing that my money isn’t just lazing around, sleeping like my stuffed poodle at home.
And I’m probably not the only one thinking. In terms of growing its user base, having such a feature can attract more Malaysians to use and stay on the app for its services. Its RM10 minimum reload is also appealing to those unfamiliar with higher risk, longer term investments, or who don’t have enough funds to go for them.
One thing to note about Principal e-Cash, however, is that it is not a Sharia Compliant Fund, but Touch ‘n Go has stated that a Sharia Compliant Fund option is in the works. development.
This feature has given Touch ‘n Go eWallet a leg up on its competition, and it would be a good idea for other electronic wallets in Malaysia to follow in its place.
While its rate of return leaves more to be desired, the introduction of GO + to the market opens up more possibilities for what e-wallets can offer, especially with a larger portion of the population using them as a free option. popular cash during the pandemic.
- You can read more about GO + here.
- You can read other articles we’ve written on e-wallets here.
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