Why is the potential interest rate or return higher than the SGD Cash Account?
This is because the Cash Fund is actively managed by a dedicated Fund Manager – Prudential Asset Management (Singapore) Ltd. Unlike the existing FSM Cash Account where the monies will only be deposited on an overnight basis with a specific bank, the Cash fund has the flexibility to invest in fixed deposits with different tenures ranging from overnight up to 12 months. The average interest earned from the Cash Fund may be potentially higher than the one-month SIBID, and therefore should be higher than the interest earned from the existing FSM Cash Account.
