Believe it or not, I never had a single Ringgit placed into FD in my entire life. 

Why? 

I obtained a full-flexi loan to buy my first property when I was in my 20s. The loan facility is linked to my current account. Hence, whenever I had excess cash, I would put them into this current account to offset my loan interest payments. The savings I received were much better than local FDs. Also, whenever I needed money, I could flexibly withdraw it to spend or invest it. 

Hence, I find this to be a simpler and a convenient way of managing excess cash, and all it costs me is RM 10 a month to maintain the current account. 

But What if I Don’t Have a Mortgage? 

Then, it is evident that you could not enjoy the benefits above. 

So let’s say I’m in your shoes today, and I have some spare cash-in-hand where I plan to use them in the short term. Personally, this may include my son’s school fees and funds to invest in stocks when opportunities arise. In addition to mine, I believe this could be funds set aside to place a down payment for a home purchase or to organize a lovely wedding in the immediate future. 

As such, the question is, ‘How best to manage these spare cash-in-hand?’ 

Would you place them into multiple FD accounts? 

Well, not really. This is because lately, I have discovered a handful of digital cash management platforms (DCMP) that offer better rates for my cash, and they are a lot more flexible in their terms than FDs today. For instance, DCMP is not restrictive with lock-up periods, and their interests are offered on a daily basis. In other words, if I want to withdraw money from DCMP at any point in time, the interest accumulated would not be forfeited. 

Today, I know at least four DCMP operating in Malaysia, such as KDI Save, Versa, StashAway Simple, and Go+. So, what are their differences? 

Here, I did some study on them and would like to share five differences between these DCMPs. 

They are as follows: 

Difference #1: Underlying Assets

This refers to where our cash will be invested upon depositing them into DCMP: 

KDI Save

Our cash shall be placed into Kenanga Investment Bank Bhd’s Treasury Products, mainly comprising deposits. 

Versa

They will place our cash into Affin Hwang Enhanced Deposit Fund, consisting of debentures, money market instruments, and deposits. 

StashAway Simple

They place our money into the AmIncome Fund, consisting of multiple vehicles such as money-market instruments, fixed-income instruments, deposits & cash. 

Go+

Our cash will be placed into Principal e-Cash, a money-market fund that Principal Asset Management Bhd runs. This fund invests in Islamic deposit, sukuk, cash, and Islamic money market instruments. Thus, it is Shariah-compliant. 

Therefore, I found that KDI Save is not run externally by a unit trust fund. Meanwhile, for Versa and StashAway Simple, our cash deposited would be managed by unit trust funds that external fund management firms set up. 

This shall lead us to: 

Difference #2: Annual Management and Trustee Fees 

For KDI Save, there is no annual management and trustee fee imposed because the cash deposited is not managed by a unit trust fund. In contrast, we shall incur annual management and trustee fees for the money placed in Versa or StashAway Simple. 

For Versa, the management fee is 0.30% per annum. Its trustee fee is 0.05% per annum. Thus, its net expense ratio works out to be 0.35% per annum. This shall be paid to Affin Hwang Asset Management.

For StashAway Simple, the management fee is 0.75% per annum. Its trustee fee is 0.05% per annum. However, its fund manager is rebating 0.30% per annum in fees to StashAway Simple, and this rebate shall be passed onto us. Thus, the net expense ratio is 0.50% per annum, paid to AmFunds Management. 

For Go+, its management fee is 0.45% per year. Its trustee fee is 0.03% per year. Therefore, its net expense ratio works out to be 0.48% per annum. This shall be paid to Principal Asset Management Bhd. 

As a result, these fees would impact our projected net returns for these DCMP: 

Difference #3: Net Projected Return Per Annum 

Currently, KDI Save offers a promotional fixed return of 3.0% per annum for the first RM 200,000 in cash deposits made until 31 December 2022. The rates for any placement above RM 200,000 would be 2.25% per annum.

Meanwhile, Versa’s projected gross return is 2.45% per annum. After deducting its net expense ratio of 0.35%, its net projected return is 2.1% per annum. 

As for StashAway Simple, its net projected return is 2.4% per annum. The rate is inclusive of its net expense ratio of 0.50% per annum. 

However, in Go+, the projected return is not as straightforward as it involves some calculation. First, the published daily rate is up to 1.5% a year. Second, Go+ offers an additional 2% per annum in bonus rate for up to the first RM 3,000 deposited into Go+. This bonus rate is a campaign that will end on 30 April 2022, and the offer is capped to RM 1 million by TNG Digital Sdn Bhd. 

So, does it mean that Go+ is offering an interest of 3.5% per annum? 

Well, not quite. First, the maximum cash we can hold in our Go+ account is RM 9,500. So, if we have RM 20,000 in excess cash, we can’t deposit RM 20,000 into Go+ as the limit is RM 9,500. Second, let’s say we place RM 9,500 into Go+. The interest calculation would be as follows: 

As such, your interest rate from Go+ varies according to the cash deposit placed into it. 

Difference #4: Deposits and Withdrawals 

This refers to the time needed to deposit or withdraw cash from these DCMPs presently. 

KDI Save

If you deposit funds online, it will take 2-3 working days for KDI Save to reflect them in your account. As for withdrawals, the amount of time to process them and return the cash to your bank account is 1-2 working days. 

Versa

The first deposit shall take 5 business days to reflect in your account. But, for all subsequent deposits, the duration is 1-2 business days. For withdrawals, Versa would process our requests on the same day if they are made before 2.30 pm, and on the following day if after 2.30 pm. We will collect back our cash on the following business day. 

StashAway Simple

It takes 2-3 business days to deposit cash into our StashAway Simple account. It could take 3-4 business days to withdraw our money from StashAway Simple back into our bank accounts. 

Go+

If you are a TNG e-Wallet user, the funds should reflect immediately into Go+, if you use the ‘Cash In’ function at your e-Wallet account. Meanwhile, if you wish to withdraw funds from Go+ back to your e-Wallet account, you may do so with the ‘Cash Out’ function, and the funds shall reflect immediately at your e-Wallet account. 

Difference #5: Option to Switch Funds 

Based on my findings, I discovered: 

KDI Save

There is an option for those who’d deposited cash into KDI Save to transfer some money to KDI Invest, an AI-Powered Digital Investment Platform that allows us to invest in selected Exchange-Traded Funds (ETFs) listed in the United States. 

Versa

There is no other fund that we can switch to if we place cash with Versa. So technically, you will have to withdraw the money to invest elsewhere when an opportunity arises.

StashAway Simple

Similar to KDI Save, there is an option to transfer funds to StashAway portfolios, mainly consisting of ETFs. 

Go+: 

There is no other fund that we can switch to if we place cash with Go+. 

Conclusion

Overall, by putting them side-by-side, we would have the following: 

As it stands, KDI Save stands out in terms of its projected returns as it is offering a promotional fixed rate of 3.0% per annum for cash deposits before the end of this year, which is 31 December 2022. 

In addition, there is a special promotion to all readers of KCLau.com. 

If you sign up with this link, you will make an additional RM 20.00 for making your first RM 100.00 in cash deposit with KDI Save. 

Click Here to Sign Up

To qualify for the bonus RM 20.00, here are the T&C:

  • Validity period: From 15 February to 31 May 2022.
  • You, as a new investor, registered using this referral code: 100110
  • Your account is successfully activated.
  • You successfully transact the minimal amount of funds into KDI Save (RM100) or KDI Invest (RM250) within the valid period.
  • RM20 each will be deposited into the KDI Invest of both the referrer and the referred (total RM40) for each successful referral. That means you will get RM20, and we will also get RM20.
  • Payouts will be made within 30 days from the successful referral.
  • A cap of 500 successful referrals per financial influencer will be imposed within the period.
  • After 31 May 2022, or when the first 500 new investors register, whichever comes first, this offer will expire and follow the terms of the General Referral Program.

KCLau
KCLau

Personal finance author and trainer

    30 replies to "Boost Productivity of Excess Cash with KDI Save"

    • Mae

      Hi KCLau

      How do I see the amount of interest earned under KDI Save?

    • Viki Lee

      Referral amount of RM20.00 or RM10.00 not reflected in KDI Invest as of 17.04.2022.
      Activated and deposit my KDI INVEST and KDI SAVE above RM250.00 on 13th March 2022.
      Is there any T&C on this or is no longer available.

      • CK

        I deposited into KDI Save on 6 March 2022 using KC Lau referral code. Until today 17 April, RM 20 not reflected in the KDI Save or Invest. Sending Email to Kenanga to check 5 days ago, no respond at all.

      • KCLau

        I communicated with KDI and they informed that due to overwhelming response, it will take longer time to credit the bonus. It is expected to be fully credited end of May. Thanks for your patience.

    • Joe Aw

      Hi KC,

      From what I read, you mentioned that the returns / interest rate will be added into y
      our account daily, hence there will be more returns added into our account everyday.

      Which means this is compounding. Will KDI able to sustain this compounding return?

      • KCLau

        Yes is it compounded, at 3% p.a. The 3% is only good till year end 2022. They can change the rate anytime.

    • Pc

      Hi kc,
      For kdi save only:
      1). While there is 3% pa intesrest added everyday, does my principle deposited stay the same everyday and guarantee to be returned in the same amount like FD? Or is it fluatuated everyday like investment fund?
      2). Will the new balance with the 3% pa interest added everyday reflected in my account everyday?
      Tq

      • KCLau

        For KDI Save,
        1) the returns / interest rate will be added into your account daily, hence there will be more returns added into your account everyday as compounding effect is taking place. The 3% p.a. returns are fixed daily hence will not fluctuate like mutual fund.

        2) Similarly answered in question one. Returns are reflected into account on every business day.

    • Mar

      KC,
      Refer to reply to AT on :-
      4) Is there a maximum amount allow per withdrawal? (No maximum amount limit for withdrawal).
      Means is unlike bank where there is a limited amount of withdrawal per day ONLINE.
      However, KDI Save has NO WITHDRAWAL LIMIT per day ONLINE ?

      Also if we have a bigger amount than is allow by our bank to transfer online to KDI Save, can we transact over the bank counter using Rentas, IBG into our KDI Save account or another person’s KDI Save ?

      Please reconfirm.

      • KCLau

        Here is the reply I got from KDI:
        “There is no limit to the withdrawal amount per day.
        For bigger amount, we will only accept cheques at the moment. Rentas and IBG are not accepted as per checked with our operation team at the moment.”

    • AT

      KC appreciate for your info on followings :
      1) Minimum balance to maintain to be eligible for the 3%
      2) 3% interest on KDI Save credit to KDI Save or KDI Invest ?
      3) When will the Interest be credited, each month end, half yearly or ?
      4) Is there a maximum amount allow per withdrawal
      5) How soon will the deposits be received in KDI Save (online instant transfer) and (cheque deposit) ?
      4) Read this in KDI website “For offline deposits, we accept cheque deposits via our designated Custodian Maybank Account” Can we also transfer cash, rentas, ibg over the bank into this custodian Maybank acc ? .

      • KCLau

        1) Minimum balance to maintain to be eligible for the 3% (The thresehold to maintain KDI Save is RM100).
        2) 3% interest on KDI Save credit to KDI Save or KDI Invest ? (3% interest rate is on KDI Save only, so credited to KDI Save)
        3) When will the Interest be credited, each month end, half yearly or ? (The returns of KDI Save is credited into your account on daily basis).
        4) Is there a maximum amount allow per withdrawal? (No maximum amount limit for withdrawal)
        5) How soon will the deposits be received in KDI Save (online instant transfer) and (cheque deposit) ? (Online deposit before 11am on a business day will be processed on the same day. After 11am will be on the next business day. Cheque deposit will take about 3 – 4 days to process).
        6) Read this in KDI website “For offline deposits, we accept cheque deposits via our designated Custodian Maybank Account” (We only accept cheque at the moment. Rentas, IBG and Cash deposit not allowed).

    • Viki Lee

      Hi, thanks for sharing. After our first initial deposit, can we top -up or need to trigger another deposit account?

      • KCLau

        You can top up anytime, only one account needed.

    • YM

      Hi KC
      Are all these investments in RM or USD? If USD we will have forex exposure right?

    • Ben

      Hi KC, I wonder the KDI save is protect under PIDM?

      • KCLau

        KDI Save is not protected by PIDM.
        PIDM usually protect banks savings, FD and insurance products.

        However, KDI Save’s underlying assets are treasury products by Kenanga Investment Bank, and also regulated by BNM, where the risk is minimal as well.

    • BC

      Is the interest paid subject to income tax? Need to file income tax?

      • KCLau

        The interest paid for KDI Save is not subjected to income tax for personal account. By the way, they do not accept corporate account at this moment.

    • Rocky Nair

      Hi KC, I have rm70k savings. not doing anything with it. can i know, if i wish to invest rm65k, for a short term return, how much will KDIsave allow me to invest and how long do i need to leave the money there until i get my interest rate of 3.0% ? thanks bro

      • KCLau

        The 3% return for KDI Save is good for the first RM 200k. The rate is confirmed till year end 2022.
        There is no restriction on withdrawal. Your interest is calculated daily.

    • Vincent

      Hey KCLau,
      Is this safe?
      The site is asking for my IC and that of my spouse too.
      Why the spouse IC as well?

      • KCLau

        Regarding the spouse IC, those are the requirements by BNM. As KDI is regulated by both BNM and SC. Hence, there is a slight difference compared to the those platform who’s just regulated by SC.

    • Garry Chow

      Are these DCMP regulated in Malaysia by the authorities eg. BNM or SC?
      In other words, are they safe?

      • KCLau

        Yes it is regulated. They need licensing to operate.

    • SK GOH

      Appreciate the information provided to us.
      However , can you kindly look into SPPN, guarantee return about 3 to 4% with no charges.
      Furthermore can entitle for 8k tax relief.

      Do you think this SSPN investment is one of the most competitive outside. Plus it is guarantee by govt of Malaysia.

      Please advise the potential of this SSPN investment

      • KCLau

        SSPN is great too – backed by government, flexible and got tax relief too.
        However, the return rate is not known, until announced next year. They just announced 3% for 2021 deposits.
        By the way, the return is not calculate daily, but on monthly basis.

    • Arvin

      HI, first, thanks for the sharing, it is really helpful!

      After seeing the comparison chart, I would definitely consider using KDI save.

      Just a quick question, so the additional RM20.00 will be deposited into KDI Invest instead of KDI Save right? Are we able to switch that money back to KDI Save?

      Thank you.

      • KCLau

        Yes, it is deposited into KDI Invest. You will be able to switch anytime.
        As for the RM20, yes, the money will be credited into KDI invest. Feel free to switch the money around or even withdraw it as KDI do not have any restrictions on switching.

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