How To Make Your Money Work Harder (Despite The Weak Ringgit) With This Simple Solution

Published on April 19, 2024

By Jordan Low

How To Make Your Money Work Harder (Despite The Weak Ringgit) With This Simple Solution

While it may seem harmless to leave your cash idle**, it also means missing out on potential returns and compounding interest that could have been earned. Moreover, inflation can be the big bogeyman that can erode your cash’s purchasing power over time.

Add to this our weak ringgit performance on the global scale and you should start thinking about how to maximise your money instead of leaving it to lose its value.

Consider making your money work harder in USD

The Malaysian ringgit has certainly seen much better times. Back in October 2023, the ringgit hit a 25-year low against the USD, and the road to recovery continues to look difficult. As such, those who have some extra idle cash sitting in the bank** may want to start exploring other options to help expand their wealth.

While investing in the strong US currency is an attractive option, high-yield USD cash accounts are not exactly the most accessible products out there. Add to that that many foreign currency accounts also do not pay interest, preferring to offer fixed deposit rates instead.

Fortunately, there are some solutions out there that could potentially help you take advantage of the more favourable rates of foreign currency. One such solution is to diversify some of your ringgit into USD with products such as the FSMOne USD Auto-Sweep.

What is the FSMOne USD Auto-Sweep?

As the name describes, this account will automatically sweep all your idle cash, such as stocks or ETF dividends, bond coupons, and maturities in USD, into FSMOne USD Auto-Sweep, which can potentially give you a higher return.

This new cash management solution launched by FSMOne, a Multi-Asset Investment Platform under iFAST Capital Sdn. Bhd allows Malaysian investors to generate potentially attractive yield while having the ability to be used as a payment method to purchase investment products across different currencies on FSMOne.

This cash management solution serves as an alternative parking facility to the FSMOne Multi-Currency Cash Account, providing you with an opportunity to invest more profitably with your excess or idle cash.

How does the FSMOne USD Auto-Sweep benefit investors?

The biggest advantage for investors is the potential for higher returns by keeping their money in this Auto-Sweep.

The FSMOne USD Auto-Sweep can potentially generate higher yield because of the underlying USD short-duration bond fund, iFAST USD Enhanced Liquidity Fund, which is managed by iFAST Financial Pte. Ltd., invests in high quality and low-risk debt instruments such as short-duration bonds, notes, bills, deposits, and other debt securities.

If you have excess or idle money and are waiting to make your next move in the global markets, you can park it in the FSMOne USD Auto-Sweep to potentially generate higher yields.

Here is a quick roundup of the benefits from using FSMOne USD Auto-Sweep.

Earn returns for your money when in-between investments

Yield	*4.523% p.a. as of 15 Apr 2024
Asset class	cash, money market fund, short-duration bond fund
Management fee	0.05% per quarter, which is already reflected in the net yield
Platform fee	0%
Minimum top up	MYR 100 / USD 10; for top up in MYR using FSMOne MYR Cash Account will require conversion to USD first and deposit the USD amount in the USD Auto-Sweep
Top up with	MYR Cash Account / USD Cash Account; the balance will reflect the top up amount instantly
Min. balance	USD 0, no minimum
Max. balance	None

High liquidity, withdraw anytime

Min. withdrawal	USD 10
Withdrawal time	Same day for withdrawal instruction submitted before 10am on a business day
Withdrawal to	back to FSMOne USD Cash Account
Lock-in period	None
Payout frequency	Daily Note: This account does not pay out interest. Instead, the increase in your account balance is determined by the increase in the Net Asset Value (NAV) of the underlying constituents inside the Auto-Sweep Account.
Auto-sweep feature	Automatically sweeps all your idle cash (from bond coupons and maturities, stocks and ETFs dividends) in USD into the USD Auto-Sweep to earn a potentially higher yield (for consolidated amounts more than USD10 in a single day)

Plus, you can use the balance in the FSMOne USD Auto-Sweep instantly to pay for unit trusts, stocks, ETFs, bonds, and FSMOne Managed Portfolios in various currencies such as MYR, USD, SGD, etc., ensuring a seamless and hassle-free experience.

Who should top up into the FSMOne USD Auto-Sweep?

The FSMOne USD Auto-Sweep is suitable for investors seeking potentially higher yield for their excess or idle cash while waiting for the next investment opportunity.

Who is this Auto-Sweep product suitable for?

For investors who want their idle cash (for example, dividends or coupons) to earn a potentially higher yield than banks’ savings account rates while waiting for the next investment opportunity
For investors who invest and trade in overseas markets where stocks are typically denominated in foreign currencies such as USD, the FSMOne USD Auto-Sweep can be very helpful for holding your USD cash. Through the FSMOne USD Auto-Sweep, you can buy and sell stocks that are denominated in USD without needing a separate USD savings account
For investors who would like to maintain their cash in USD for potential currency gains and future needs