StashAway Simple Review: The Fixed Deposit (FD) Killer?
After it’s launch in Singapore in late November last year (2019), StashAway has finally launched StashAway Simple to all Malaysian users today!
Now, if you have read my StashAway in-depth review earlier this year, you would know that my minor rant about the robo-advisor is not getting StashAway Simple readied to all Malaysian users back then.
So, what exactly is StashAway Simple?
Simply put, StashAway Simple is the company’s alternative to conventional financial vehicles like the Fixed Deposit (FD).
What Makes StashAway Simple so Special?
In my opinion, there are a few things that make StashAway Simple stands out among conventional financial vehicles like FD:
- Earn a projected return of 2.4% per year. (p.s. Maybank 12-month FD rate is at 2.10%)
- No minimum balance required – you can start using StashAway Simple at any amount, anytime you want (this is really StashAway’s trump card).
- No lock-in period like FD – deposit & withdraw anytime you want.
- Zero service + platform fee! The only cost involved is a (very) minimal fee of approximately 0.165% charged by the underlying unit trust manager.
p.s. the fee is already been taken account in the 2.4%/year projected return, so don’t worry about the fee affecting the return. :)
- Shariah Compliant.
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Where Does Your Money Go When You Invest Your Cash in StashAway Simple?
When you put your money into StashAway Simple, they are essentially invested in money market instruments that are extremely low risk.
If you are curious, the underlying money market fund of StashAway Simple is the Eastspring Investments Islamic Income Fund.
Is StashAway Simple Risky?
Every investment comes with its own risk.
That said, StashAway Simple is rated 1.8% under the StashAway Risk Index.
In other words, investing in StashAway Simple is just as risky as putting your money into FD – which is extremely low risk.
Should You Use StashAway Simple?
You should definitely consider using StashAway Simple if:
(1) You are looking for a better Fixed Deposit (FD) alternative for your savings.
Hate the high barrier of entry of FD? Dislike the long lock-in of FD?
I think you will love StashAway Simple.
(2) You are building up your emergency fund.
Looking to start building your emergency fund where you can have quick access to your money?
StashAway Simple is a great choice for you!
(3) You are looking for a place to park your cash while waiting for an investment opportunity.
If you are an investor that is currently parking your assets in cash, waiting for an investment opportunity, StashAway Simple is a solid place for you to place your cash.
Competitors
StashAway Simple solves a crucial headache of high-barrier of entry & long lock-down period of the conventional Fixed Deposit offered in the market.
To be honest, if StashAway Simple was to be released in Malaysia earlier this year, it would be a no-brainer for me to recommend this straightaway to people.
However, in the highly competitive space of financial technology and innovation, a 6-months period can change a lot of things.
A rise of new competitors in the space is one of them.
Introduced in April this year, BIMB’s Best Invest app allows investors to invest in its BIMB Dana Al-Fakhim money market fund from as low as RM10.
Since the underlying asset of both StashAway Simple and BIMB Dana Al-Fakhim fund are equally money market instruments AND both provide almost similar flexibility (low barrier of entry), they are without a doubt the closest and best solution for people looking for an FD alternative now.
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No Money Lah’s Verdict: Simple is the New Breakthrough
With the rise innovations in the financial solution space, it is refreshing to keep seeing new, innovative products from robo-advisor platforms like StashAway.
In many ways, in the financial services industry, simple is indeed the new breakthrough that the consumers need.
Personally, I have always enjoy using StashAway to complement my investment style and I have long waited for StashAway Simple to be introduced in Malaysia.
Now that it is finally here, I am super excited to give it a try and I highly suggest you to check it out too!
Related: Read my full review on StashAway HERE
