FSMOne sweep account vs cash account - Dividend Machines by The Fifth Person

Q&A › Category: Miscellaneous › FSMOne sweep account vs cash account

Casey asked 8 months ago

Which is better to park money for investment ?
The sweep account will,automatically convert to different currencies eg USD, HKD, RMB, MYD whereas cash account need to convert manually to respective currency when buying stock of that country.

cash account or sweep account ? Thanks.

1 Answers

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Rusmin Ang Staff answered 8 months ago

Hi Casey

Sweep accounts allow you to earn interest on idle cash but you must manually sweep it in to enjoy the interest. You can turn on auto sweep if you wish but note that it may take a few days before you can use the cash. Cash account earns lower interest rate but you can deploy it right away. SSB is still the best but if you already max it out, then you can choose between the two, depending on your liquidity needs.

Rusmin Ang Staff replied 8 months ago

Generally I won’t convert to different currency (ie SGD to USD) just to earn higher rate since there is currency risk. I would only convert when I need to deploy them.

Casey replied 8 months ago

Thanks for your advice. What is SSB by the way ?

Casey replied 8 months ago

Thanks for your advice. What is SSB by the way ?

Casey replied 8 months ago

Thanks for your advice. What is SSB by the way ?

Rusmin Ang Staff replied 8 months ago

Singapore Saving Bonds

Rusmin Ang Staff replied 8 months ago

If you own a CDP account in Singapore and a local Bank account, you can apply it via the online banking

Rusmin Ang Staff replied 8 months ago

https://www.mas.gov.sg/bonds-and-bills/singapore-savings-bonds

Casey replied 8 months ago

Thanks Rusmin.