StashAway, a digital wealth management platform, announced StashAway Simple for Malaysian investors on Monday (June 15).
StashAway Simple is a Shariah-compliant cash management portfolio that allows you to earn a projected rate of 2.4% p.a. 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 would need to lock up your cash for a specific tenure – if you withdraw early, you may face a penalty or receive lower interest rates. You may also need to deposit a minimum balance to get the best rates.
StashAway Simple doesn’t impose these restrictions. Its features include:
- No minimum balance
- No lock-up period
- No deposit requirements or withdrawal restrictions
“Savers and investors shouldn’t have to lock-up their money for 6 to 12 months just to earn an acceptable rate in a low interest rate environment. With StashAway Simple anyone can earn a projected 2.4% p.a. return without lock-ups and complicated conditions,” said Wong Wai Ken, StashAway Malaysia’s Country Manager.
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 does have an annual expense ratio. Eastspring Investments rebates 50% of the fee they charge to StashAway, which is then passed on to customers. After these rebates, 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 can change over time depending on its underlying investment, which in turn is affected by Malaysia’s economic health – although customers will always be notified if the projected rate changes.
However, StashAway points out that StashAway Simple carries very low risk. The StashAway Risk Index (their internal index for measuring risk) for StashAway Simple is 1.8%. This means you have a 99% chance of not losing more than 1.8% of your portfolio in a given year.
Overall, StashAway Simple could be a good fixed deposit and savings account alternative for those looking for higher returns on their savings, without being restricted by tenures or minimum balances – just keep in mind that you may incur slightly higher risk.
