Compare fixed deposit with money market fund

Hi Mr Tan,

I am just curious about NTUC's Flexi-cash investment versus MayBank's iSavvy time deposit.

iSavvy returns between 3% to 3.15% (returns variou with different lock-in period), with minimum of $25,000.

Say if I don't forsee an immediate use of my cash, would iSavvy suit me better?

When you have decided to invest your $100k into Flexi-Cash, have you too considered the merits of iSavvy? (being higher returns)

MT

-----------------

Dear MT

The advantage of Flexi-cash is its flexibility. I can withdraw my money at any time, without any penalty. This allows me to invest in an equity fund at the right time, eg if the market has corrected.

Another advantage is that the return is flexible. If the interest rate in the money market goes up, the return in flexi-cash will also go up. As interest rate is expected to increse, it will be to the advantage of the saver to be on "floating rate".

For the small difference in return, compared to the "locked up deposit" from Maybank, I prefer to be in flexi-cash.

Tan Kin Lian