Last Updated on September 17, 2024 by Chin Yi Xuan
Since the launch of Moomoo MY in Malaysia in early 2024, they have grown to be one of the top stock investing platforms in Malaysia.
In my initial review during the launch, the lack of ability to earn interest on idle cash was one of my criticisms towards Moomoo MY.
However, with the launch of Cash Plus, things have now changed. As a Moomoo MY client, you can now enjoy a low-risk, competitive return on your idle cash when you sign up for moomoo’s Cash Plus funds!
In this post, let’s dive deeper into Cash Plus and look at what Cash Plus has to offer!
RELATED POST:
[🎁 p.s. Exclusive 1x RM40 cash coupon for No Money Lah readers! Use promo code ‘NML01’ when depositing to claim your exclusive reward. Refer to ‘Account Opening & Deposit Promotion’ section of this article to find out more!]
Table of Contents
What is Cash Plus?
Cash Plus is a suite of money market and cash funds offered to Moomoo MY users which invest in high-security monetary instruments, such as government short-term bonds and banks’ fixed deposits (FD).
Thanks to this, the funds offered by Cash Plus are low-risk options for investors looking to:
- Earn interest on their idle cash while waiting for the next investment opportunity, or;
- Simply saving towards a financial goal in life.
For me, Cash Plus is also a flexible alternative to traditional Fixed Deposits (FDs), where my deposits are locked in for a fixed period with a penalty usually imposed for early withdrawal.
Moomoo MY Cash Plus Benefits
Having used Cash Plus for a period of time, these are what I like about Cash Plus:
#1 Earn daily returns:
By using Cash Plus, you get to enjoy up to 3.5% p.a.* in daily returns. This daily return is applicable even during the weekends.
This is competitive compared to traditional Fixed Deposit rates from banks, especially considering that they come with lock-in period.
*Based on 1-year past returns on Maybank Retail Money Market-I Fund and United Money Market Fund-Class R as of May 2024.
#2 Low barrier of entry:
It is also easy to get started with Cash Plus. All funds in Cash Plus can be subscribed from RM0.01 for MYR money market funds or USD0.01 for USD cash fund.
There is no maximum amount on how much you deposit in Cash Plus.
#3 Swift deposit & withdrawal
With Cash Plus, you are able to make your deposit and withdrawal swiftly, without the typical lock-in period compared to traditional banks’ FD:
Deposit time for Cash Plus funds:
| United Money Market Fund – Class R | Maybank Retail Money Market I-Fund | United USD Cash Fund – Class R | |
| Subscription Cut-off time | 12:00pm | 12:00pm | 9:00am |
| Unit confirmed | Within the same trading day (T+0) | Within the same trading day (T+0) | Within the next 2 trading day (T+2) |
| Return posted | The next trading day (T+1) | The next trading day (T+1) | The next 3 trading days (T+3) |
Redemption time for Cash Plus funds:
| United Money Market Fund – Class R | Maybank Retail Money Market I-Fund | United USD Cash Fund – Class R | |
| Redemption Cut-off time | 12:00pm | 12:00pm | 9:00am |
| Unit confirmed | – | T+0 | T+2 |
| Redeemed amount | T+1 (Before 8pm) | T+1 | T+3 |
#4 Flexibility to redeem MYR money market funds for trading anytime
Even better, with Cash Plus, you can redeem your deposits on MYR money market funds for stock trading at any time, without having to wait for the withdrawal to be completed.
This makes it easy to keep your idle cash in the moomoo app working to generate returns for you at all times until you need it for trading purposes.
Meanwhile, deposits in USD Cash Plus fund can only be traded after redemption is completed.
#5 Zero fees + Shariah-compliant fund
In addition, there is also zero fees charged by Moomoo MY for Cash Plus. In other words, all you earn is yours to keep.
For Muslim investors, there is also a shariah compliant MYR money market fund, namely the Maybank Retail Money Market-I Fund that is available to be subscribed by Malaysian Muslims.
3 types of Cash Plus funds
There are 3 funds under Cash Plus. 2 of them are MYR money market funds, and one of them is a USD cash fund:
(A) Cash Plus MYR Money Market Funds
There are 2 MYR money market funds, namely United Money Market Fund-Class R, and Maybank Retail Money Market I-Fund.
| United Money Market Fund-Class R | Maybank Retail Money Market I-Fund | |
| Currency | MYR | MYR |
| Asset Manager | UOB | Maybank |
| 1-Year Return (as of 5/9/2024) | 3.61% | 3.59% |
| Shariah-Compliant | No | Yes |
| Subscription & Redemption fee | No | No |
As a whole, the 1-year return from both MYR money market funds is almost similar. The biggest differentiator for most users would be the Shariah compliance of the funds.
For Muslim investors who seek to invest in Shariah-compliant funds, the Maybank Retail Money Market I-Fund would be the go-to choice.
A major benefit of using Cash Plus MYR Money Market Funds over the USD Cash Fund is the ability to redeem the funds anytime, and even if the funds have not yet arrived, they can be used for trading within the moomoo app.
(B) USD Cash Fund
Aside from MYR money market funds, there is also a USD cash fund to choose from, namely the United USD Cash Fund – Class R:
| United USD Cash Fund – Class R | |
| Currency | USD |
| Asset Manager | UOB |
| 7-day Yield (as of 5/9/2024) | 5.0765% |
| Shariah-Compliant | No |
| Subscription & Redemption fee | No |
United USD Cash Fund – Class R allows investors to gain exposure and earn interest in USD.
The only thing is that unlike MYR money market funds above, I can only use my USD funds for trading once the redemption is complete.
Is Cash Plus safe to use?
- Regulated by Securities Commission Malaysia (SC)
When it comes to regulation, Moomoo MY (registered under the name Moomoo Securities Malaysia Sdn. Bhd.) is regulated by the Securities Commission Malaysia (SC). This ensures that Moomoo MY is always operating in Malaysia as per the guidelines from the local authority.
- CMC Fund Protection
If Moomoo Securities Malaysia Sdn. Bhd. goes bankrupt and you are unable to withdraw your funds, you are eligible to claim up to RM100,000 in compensation from the Capital Market Compensation Fund (“CMC Fund”).
Market Risk of Investing in Cash Plus
While being a relatively stable investment, investing in money market fund via Cash Plus still presents exposure to market risk.
One such risk is the fluctuation in interest rates. As an example, if Bank Negara Malaysia (BNM) increases interest rates, MYR money market funds are likely going to generate higher returns. On the flip side, if BNM reduces interest rates, it’ll also affect the returns of money market funds as a result.
Is Cash Plus for you?
Personally, I like the fact that there are both MYR and USD versions of funds available in Cash Plus.
Quick deposit & withdrawal, alongside the ability to access the money in my MYR money market funds for trading purposes, make Cash Plus one of the most versatile cash management solutions that I’ve used so far.
That said, is Cash Plus for you?
To answer this question, it is best to first know what Cash Plus is NOT:
- Cash Plus does not invest in stocks/equities (ie. Higher risk assets). Hence, do not expect stocks/mutual fund/robo-advisors-like returns.
- Cash Plus does not guarantee returns. Even though it invests in low-risk instruments, returns are still subjected to market fluctuation.
Hence, in my opinion, Cash Plus is great for:
- People with extra cash looking for the next investment opportunity, but wish to earn a stable return in the meantime.
- People looking for a flexible alternative to FD & typical savings account for general savings.
- People looking to save for a specific goal (eg. house, car, wedding).
- People with extra cash and want to save it for the short-term.
🎁 Limited-Time Cash Plus Reward (8/8/2024 – 30/9/2024)
Get 1x RM10 fund cash coupon when you invest RM5,000 or more in Cash Plus funds!
The RM10 cash rebate amount will be automatically issued to your account within 3 working days after the confirmation of the subscription of fund.
Check out how to subscribe to Cash Plus below!
How to subscribe to Cash Plus?
Step 1: Before subscribing to Cash Plus, you will need to first have a Moomoo MY universal account. Click on the button below to open your account:
Step 2: Within the moomoo app, select ‘Account’, then choose ‘Cash Plus’.
Step 3: Select the specific money market fund in Cash Plus that you’d like to invest in, and click ‘Subscribe’ at the bottom of the fund details page.
Next, insert the amount that you’d like to invest, read and agree to the relevant agreement documents, and click ‘Confirm’.
Step 4: After confirming the purchase information, enter your transaction password to complete the subscription to Cash Plus.
🎁 Account Opening & Deposit Promotion (ending 25/10/2024)
Get 3 exclusive perks when you open your Moomoo MY account using my referral link:
#1 Trading perks:
#2 Account Opening and funding promotion* (*ending 25/10/2024. T&C applies)
- Deposit a cumulative amount of at least RM1,000, and enjoy:
- 1x RM50 and 2x RM25 stock cash coupons. Reward will be activated if you maintain at least RM1,000 or more in assets (cash, stocks, and other assets included) for 60 days.
- Note: You are free to trade stocks during the lock-in period, and the value fluctuations of your holdings after depositing will not affect the unlocking of rewards – the key is to maintain a minimum net deposit of RM1,000 throughout the 60 days.
- Deposit a cumulative amount of at least RM10,000, and enjoy:
- 0.3 units of guaranteed Nvidia (NVDA) stocks.
- 4x RM50 and 2x RM100 stock cash coupons.
- Rewards will be activated if you maintain at least RM10,000 or more in assets (cash, stocks, and other assets included) for 60 days.
- Note: You are free to trade stocks during the lock-in period, and the value fluctuations of your holdings after depositing will not affect the unlocking of rewards – the key is to maintain a minimum net deposit of RM10,000 throughout the 60 days.
- Deposit a cumulative amount of at least RM30,000 and complete 3 Buy trades, and enjoy:
- 1x guaranteed* Nvidia (NVDA) stock. (*limited to first 8,000 users, first come first served basis)
- Reward will be activated if you maintain at least RM30,000 or more in assets (cash, stocks, and other assets included) for 60 days.
- Note: You are free to trade stocks during the lock-in period, and the value fluctuations of your holdings after depositing will not affect the unlocking of rewards – the key is to maintain a minimum net deposit of RM30,000 throughout the 60 days.
#3 [No Money Lah Exclusive] Free 1x RM40 cash coupon (Promo Code: NML01)
- Use my promo code ‘NML01‘ while you make a first deposit of RM1,000, and receive:
- 1x FREE RM40 cash coupon will be issued within 7 days upon successful deposit.
- Reward will be activated if you maintain at least RM1,000 or more in assets (cash, stocks, and other assets included) for 60 days.
- Note: You are free to trade stocks during the 60 days lock-in period, and the value fluctuations of your holdings after depositing will not affect the unlocking of rewards – the key is to maintain a minimum net deposit of RM1,000 throughout the 60 days.
- Upon completing the task above, the cash coupon will be automatically credited to your account balance within 5 working days.
Here’s how to claim your exclusive RM40 cash coupon:
[Reminder] Remember to claim your account-opening perks! (Under ‘Me’ > ‘Promotion’ > Click to redeem your account opening and deposit reward)
Verdict: Use Cash Plus to earn competitive interest on your idle cash!
Moomoo MY is one of the most complete trading platform in Malaysia and the introduction of Cash Plus certainly makes it more versatile and complete.
Are you going to subscribe to Cash Plus? Which funds will be you choosing? Feel free to share with me in the comment section below!
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Moomoo Securities Malaysia Sdn. Bhd. (“Moomoo MY”). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
