It was announced today that the existing 4% promo is coming to an end next month. It will be replaced by a inferior promo that will require you to setup auto-debit into Versa Invest (NOT Versa Save/Cash) to get an additional 1% on top of the base rate for the initial RM 10-30k, depending on how much you auto-debit. It is also limited to the first 10,000 customers if you look into the detailed t&c on item 4.3.
You can read more about the new promo structure here.
Anyone has any ideas on alternative liquid low-risk investments that provide similar yield?
I have considered these ideas:
ASM/ASB returns are great but the hassle to withdraw more than RM2k is a turn-off for me. Although I do have longer term emergency savings held here.
GXbank long term rate of 3% p.a. is low, even after compounding it doesn't yield much more.
Stashaway Simple yields an advertised 3.6% p.a. - it's decent but withdrawal time usually longer than Versa.
Just go with a bank that allows opening of global account. Last I check, HSBC global USD account is paying 4.92% interest per month tenure for USD FDs. That's perpetually (none of this promotional period only bullcrap), at least until the next rate cut.
That's a decent idea especially if executed towards the start of the monetary tightening cycle. Personally I think the anticipated rate cuts would strengthen the ringgit near term. I'm not sure if the returns would be worth it if I convert to USD near ATH.
I'm bearish on RM but not that bearish Also I have USD denominated stocks as hedge already.
@trevorwoofer2 Ah I see. That’s young. I’m retired. Haha
Just leave epf alone. As long as have a job it will grow.
For that age, take risk. Put 10% of your income into globally diversified etf. DCA over 30 to 40 years. Put 10% into Singapore banks and REITs. Get yourself well insured and stay out of debt (except if you want a house).
@johndaniels Thanks for your kind and detailed advice sir! Your wisdom is much appreciated here. Hope you are enjoying a good retirement hehe
DCA has been proven to work well but I'm always tempted to be too smart agree on the diversification, risk levels and staying out of debt i.e. living within your means
@rukundo Hi I didn't know about this.. Good shout! I wish I had done this before the Fed is close to ending their tightening campaign.
Personally feel like the USD conversion at ATH is not a good idea especially with rate cuts in the horizon which will strengthen MYR and reduce the cash yield.The conversion back to MYR in the near term would erode the attractive returns.
But there is a scenario where MYR keeps depreciating from here and this will work out well..
@trevorwoofer2 I actually don’t think the changes are that bad - I might go ahead with an auto-debit for the growth funds. 4.77% sounds very decent with the auto debit into the invest funds
It’s just on a personal level, being tied to an auto debit to “earn” an extra 1% is like being forced into a subscription. Idk about you, but I don’t like being held by the balls.
@trevorwoofer2 Its a place to save money not to grow your money, if you want to grow money go and invest the money. As long as the rate given beats inflation its good enough to save there, just my 2 cents
@jimmyk Yea I have a separate investment fund for growth/higher risk play, so I'm not confused with my intent here.
It depends on the size of the cash account. 1% p.a. difference for a RM 50k cash account is RM 500 a year, significant enough for me to expend time to find an optimal platform.
You could argue there is no reason to keep high amounts of cash in savings but there are certainly scenarios out there that make sense.. E.g. anticipating market volatility and near term high expenses
Also I have USD denominated stocks as hedge already.