StashAway, a digital wealth management platform, announced StashAway Simple for Malaysian investors Monday, June 15.
StashAway Simple is a Sharia-compliant cash management portfolio that allows you to earn an expected rate of 2.4% per year on your cash.
A flexible alternative to fixed deposits and savings accounts
With other cash management options, such as fixed deposits and savings accounts, you will need to freeze your money for a specified period of time – if you withdraw early, you risk a penalty or lower interest rates. You may also need to deposit a minimum balance to get the best rates.
StashAway Simple does not impose these restrictions. Its features include:
- No minimum balance
- No blocking period
- No deposit requirement or withdrawal restriction
“Savers and investors shouldn’t have to block their money for 6 to 12 months just to earn an acceptable rate in a low interest rate environment. With StashAway Simple, everyone can earn a return of 2.4% per year without deadlocks and complicated conditions, ”said Wong Wai Ken, Country Manager of StashAway Malaysia.
How much does it cost?
StashAway does not charge any platform fees. However, StashAway invests your cash management portfolio in Eastspring Investments Islamic Income Fund, which has an annual expense ratio. Eastspring Investments reduces the costs invoiced to StashAway by 50%, which are then passed on to customers. After these discounts, the net expense ratio for StashAway Simple is approximately 0.165%.
Returns are not guaranteed
Unlike fixed deposits or savings accounts, returns with StashAway Simple are not guaranteed. Its projected rate may change over time depending on its underlying investment, which in turn is affected by the economic health of Malaysia – although customers will always be informed if the projected rate changes.
However, StashAway points out that StashAway Simple carries a very low risk. The StashAway risk index (their internal index for measuring risk) for StashAway Simple is 1.8%. This means that you have a 99% chance of not losing more than 1.8% of your portfolio in any given year.
Overall, StashAway Simple could be a good alternative to a fixed deposit and savings account for those looking for higher returns on their savings, without being limited by tenures or minimum balances – keep in mind that you may be at slightly higher risk.
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