Yield on Money Market Fund

Dear Mr Tan,

The fixed deposit interest rate is very low at the moment (<2%). I consider parking a sum of said $30,000 in the Flex-Cash (ie Money Market Fund) as it return is stated at 3% or more.
What do think, is it a right move?

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REPLY:

The yield on Flexi Cash has also fallen in recent weeks. It should be about 2% p.a. now.

I think that it is all right to put into Flexi Cash as you have the flexibility to take it out at any time, without any penalty.