Last Updated on May 10, 2024 by Chin Yi Xuan
When it comes to how I save, there are 2 key requirements:
- Only save on low-risk assets or funds that provide competitive returns to negate the impact of inflation.
- Save in low-risk assets that do not lock up my money (ie. I can deposit & withdraw freely), so I can access my money whenever I need it.
For the above requirements, FSMOne USD Autosweep ticks all the boxes.
Even better, it allows me to save my money in USD, making it even more attractive!
In this post, let me share about FSMOne USD Autosweep, a low-risk way to grow your cash in USD!
Table of Contents
Highlights of FSMOne USD Autosweep
Introduced in April 2024, FSMOne USD Autosweep is a USD cash management solution offering users attractive cash yield, alongside exposure to USD.
Some of its key features include:
- Earn competitive yield: Invest your idle or excess cash in USD, and earn a competitive yield on them. As of 29/4/2024, the net yield for FSMOne USD Autosweep stands at 4.598%* per annum (*updated weekly, please check FSMOne’s website for the latest yield figure).
- Side note: It is important to know that FSMOne USD Autosweep does not pay out dividends. The returns from the yield will be reflected in the growth of your investment value.
- Low risk: FSMOne USD Autosweep invests in low-risk financial instruments like short-term bonds and money market funds.
- Flexible & low barrier of entry: Start using FSMOne USD Autosweep with a minimum top-up amount of USD10 or RM100. There is also no lock-in period which provides maximum flexibility to withdraw or invest your cash elsewhere.
How does FSMOne USD Autosweep work?
Firstly, it is important to understand how FSMOne USD Autosweep generates its yield.
To begin with, FSMOne USD Autosweep is a discretionary portfolio managed by the iFAST team (p.s. FSMOne is wholly owned by iFAST) which allows the team to invest in high-quality, low-risk investment products such as short-term bonds, deposits, and money market funds.
As of the time of writing (early May 2024), 90% of the underlying fund of FSMOne USD Autosweep is made up of iFAST USD Enhanced Liquidity Fund, which is a fund that invests in high-quality & low-risk debt instruments like bonds and notes.
Generally, the yield of debt instruments like bonds follows the US interest rate.
Since the US interest rate is at decade high, this makes it possible for FSMOne USD Autosweep to generate its competitive yield.
Key features of FSMOne USD Autosweep
#1 Low barrier of entry: Start using FSMOne USD Autosweep at just USD10 or RM100
FSMOne USD Autosweep has a low barrier of entry with a minimum top-up of USD10 or RM100. This means everyone can try and see if it is a good fit for their financial routine.
Furthermore, there’s no minimum balance to maintain in your FSMOne USD Autosweep account, which ensures maximum flexibility for you as a user.
#2 Same-day withdrawal (T+0) & no lock-in period
FSMOne USD Autosweep also offers same-day withdrawal. If you submit a withdrawal before 10am on a business day, your withdrawal will be credited back to your FSMOne USD Cash Account on the same day.
From my experience (see photo below), the withdrawal process from my USD Autosweep account (USD) back to my bank account (MYR) is done within the same business day. This is considered speedy compared to other cash management solutions available in the market.
There is also no lock-in period, which provides the flexibility for users to withdraw, or use the cash to invest whenever they see fit.
As for withdrawal, the minimum withdrawal amount is USD10.
#3 Use your cash balance in your FSMOne USD Autosweep account to pay for your investment within FSMOne suites of products
Since FSMOne offers a range of financial products from stock, ETFs, unit trusts, bonds, and managed portfolios, you can use your cash balance in FSMOne USD Autosweep to pay for your investments in FSMOne seamlessly, regardless of currency.
This convenient feature makes it easy for you to deploy your cash balance in your USD Autosweep account to pay for investments in FSMOne whenever you see fit.
#4 Automatically reinvests your dividends, coupon payments, and bond proceeds
Furthermore, if you invest in stocks/ETFs or bonds via FSMOne and you opt into the FSMOne USD Autosweep account, your dividends, coupon payments, and proceeds from bond maturity will be automatically swept into your USD Autosweep account to earn potentially higher interest once they have accumulated more than USD10 in value.
Fees & Pricing
FSMOne USD Autosweep charges a management fee of 0.05% per quarter.
This management fee and any other fund-related expenses are already taken into account in the net yield for FSMOne USD Autosweep.
Meanwhile, there is no other platform fee involved.
What are the risks?
While FSMOne USD Autosweep invests in high-quality low-risk assets like bonds, notes, debt instruments, and money market funds, it is still not without its own set of risks.
For one, the funds in FSMOne USD Autosweep is not PIDM protected, unlike the deposits and Fixed Deposits (FD) in your bank.
In addition, the yield of FSMOne USD Autosweep will likely be influenced by the fluctuation in US interest rate. Simply put, should the US Federal Reserve (FED) decide to cut interest rates in the future, it will influence the yield of FSMOne USD Autosweep (or US bonds and money market funds as a whole, for that matter).
Is FSMOne USD Autosweep for you?
One key strength of placing your cash on FSMOne USD Autosweep is the liquidity – where you can deposit and withdraw quickly whenever you see fit.
As such, I think it is suited for:
- People who want to keep their idle or excess cash in USD and earn potentially higher returns than typical Fixed Deposits (FDs) – all while enjoying the flexibility to deposit & withdraw anytime without penalty.
- Investors who want to keep their idle cash from dividend payouts and coupon payments to earn a competitive yield while waiting for the next investment opportunity.
- Investors that use the FSMOne platform to invest in USD-denominated products. Funds from FSMOne USD Autosweep can be used seamlessly to invest without any lag time.
🎁 FSMOne: Account-opening perks & referral link
Aside from FSMOne USD Autosweep, the FSMOne platform also offers a range of financial & investment products for fellow Malaysians – from stocks, unit trusts, managed portfolios, and bonds!
Open your FSMOne account with my exclusive referral link today, and enjoy the following perks:
No Money Lah Verdict: Low-risk & flexible way to grow your cash in USD and earn a competitive yield!
Given that MYR has been losing its value against the USD for the past decade, it is important to consider diversifying our excess cash to have USD exposure – and I think FSMOne USD Autosweep is a great choice for this purpose.
Give FSMOne USD Autosweep a try, and let me know what you think!
Step-by-step guide to start using FSMOne USD Autosweep
Step 1: Firstly, start by opening your FSMOne account HERE. Skip to Step 2 if you already have a FSMOne account.
- Select ‘Personal Account’
- Key in your personal details and create your FSMOne account username & password.
- Key in your tax information
- Verify your identity by taking a photo of your IC
- Enter your address and upload a supporting document (eg. utility bill, bank statement) as proof of your address:
- Enter your employment details. You will also given an option to open a CDS account with FSMOne, which allows you to trade stocks. There will be a fee of RM10 to open a CDS account, which will be refunded upon successful account activation:
Step 2: Log in to your FSMOne account.
- Under Cash Solutions, select USD Autosweep. Then, select ‘Top up now’. Once you top up to your USD Autosweep account, your account will automatically opt-in for the autosweeping feature.
Step 3: To add funds to FSMOne USD Autosweep, you will first need to top up your FSMOne MYR or USD Cash Account.
Reminder: A minimum top-up of USD10 or RM100 is required for USD Autosweep
- Top up your FSMOne MYR or USD Cash account first:
- Once done, proceed to top-up your USD Autosweep account with your MYR or USD cash balance. If you are using your MYR cash account to top up, then currency conversion will take place automatically in this step.
- Once done, the balance on your FSMOne USD Autosweep account will be updated instantly.
FAQ – FSMOne USD Autosweep
Q1: Is FSMOne regulated?
FSMOne is licensed by the Securities Commission of Malaysia. This ensures that FSMOne operates within the rules set by the authority.
Q2: Is FSMOne USD Autosweep PIDM protected?
No, funds in USD Auto-Sweep are not protected under the Perbadanan Insurans Deposit Malaysia (PIDM)
Q3: Is FSMOne USD Autosweep Syariah-compliant?
No.
Disclaimers
All materials and contents herein shall not be construed as an offer or solicitation for the subscription, purchase or sale of any fund, product or services. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons.
Investors are advised to read and understand the contents of the prospectus, product highlight sheet (PHS) and relevant disclosure documents before investing. The prospectuses, PHS and relevant disclosure documents can be obtained from FSMOne Malaysia website. Investors should compare and consider the fees, charges and costs involved before investing. Investors are advised to understand the risks involved in relation to the products or services and further conduct his/ her own risk assessment and seek professional advice, where necessary. The unit trust fund’s prospectuses have been registered and lodged with the Securities Commission (SC), however this does not amount to nor indicate that SC has recommended or endorsed the product. Past performance is not indicative of future performance. Opinions expressed herein are subject to change without notice. Some funds, products or services may not be suitable or available to all investors, and are only made available to Sophisticated Investors (as defined in Capital Market and Services Act). The contents herein have not been reviewed by SC. Please read our full disclaimer in the website.
The profit earned from USD Auto Sweep is it taxable? Need to pay tax for that profit?
Hi Kevin,
No need, you do not have to pay tax on this.
Regards,
Yi Xuan