Estimated reading time: 7 minutes
Let’s be honest. Most of us have some extra money sitting in a normal savings account, not because it’s good, but because it’s easy.
The money is safe, you can withdraw anytime, but the return is almost nothing. Still, we leave it there because we don’t want risk, and we don’t want our cash locked up either.
So the real question is:
Is there a place to park your money where it stays accessible, but earns a bit more than a normal savings account?
That’s where things like money market funds and Cash Plus come in.
In this blog, I’ll explain:
- What a money market fund actually is
- How Cash Plus works
- Comparison of money market fund
- Things to know before subscribing to cash plus
- How to subscribe to cash plus
TABLE OF CONTENTS
What is a Money market fund?
Think of a money market fund as a low-risk parking spot for your cash. Instead of letting it sit idle, these funds put your money to work in ultra-short-term loans to banks and governments. The goal is to keep your principal safe while earning a little bit every single day. It’s not a get-rich-quick play but never underestimate the power of those daily gains compounding over time.
Why is the risk of money market funds low?
Money market funds focus on stability by investing only in short-term, high-quality instruments, such as:
- Banks (short-term deposits or interbank loans)
- Government (Treasury Bills or short-term government securities)
- Cash-equivalent securities (very short-term, high-quality instruments)
Because these borrowers are highly creditworthy and use the money briefly and pay a small interest – which is how many market funds get your money.
(Low risk does not mean risk-free.)
Earning
Let’s say you put RM100 into a money market fund and the fund earns roughly 2-4% annually, that works out to just a few sen over a short period. These gains appear as small daily increases, rather than big jumps.
If the fund distributes an interest of 0.3 sen per unit today:
- Interest received: 100 units x RM0.003 = RM0.30
- Your new total: RM100.30
It may feel insignificant day to day, but over time, this is generally more efficient than leaving cash idle in a standard savings account. The best part? There’s no lock in – you can withdraw your cash whenever you need.
But accessing money market funds directly isn’t always convenient. You often have to research specific funds, track your own units, and manage everything manually. That’s where Cash Plus comes in.
What is cash plus?
Cash Plus is a cash management account that automatically places your money into low-risk money market funds, so you can earn daily interest without dealing with the complexity.
Your cash is invested in short-term, high-quality instruments such as bank deposits and government securities – the same types of assets used by professional investors.
With Moomoo Cash Plus, you can start with as little as RM0.01, making it easy to put idle cash to work without changing how you manage your money.
If you’re a new Moomoo MY user, you can currently grab a boosted 6% p.a. return on your Cash Plus balance for the first 30 days (on deposits up to RM30,000). You can choose from any of these three funds to enjoy the promo:
- United Money Market Fund – Class R
- Maybank Retail Money Market – I Fund
- Eastspring Investments Islamic Income Fund – Class R
Tips: Smart Save provides the ability to auto subscribe and redeem Cash Plus. For example, when there is idle cash in your moomoo account, the funds will automatically be bought into CashPlus to earn interest. However, if the account is in arrears, the system will automatically redeem CashPlus to repay the arrears.
Comparison of the different money market fund
Things to know before subscribing to cash plus
1. Currency options
One of the best features of Moomoo Cash Plus is that you are not limited to just one currency. You can choose to park your cash in Malaysian Ringgit (MYR) or US Dollars (USD).
While the USD funds often offer higher returns, keep in mind they come with a few risks such as exchange rate swing, interest rate shifts and conversion costs.
2. Performance
Want to see the historical returns? You can check the performance of any Cash Plus fund before you subscribe. Just toggle between the monthly, quarterly, or annual historical returns to see how steady those daily gains have been over time.
3. Trading rules
Before you hit subscribe, take a quick 10-second look at the buying, redeeming, and fee rules. Knowing the ground rules now ensures a smooth, surprise-free experience later.
4. Holdings
Lastly don’t just look at the returns – look at the holdings too. Understanding exactly what the fund is investing in is the best way to see the fund potential gains and the risks involved.
Step by step how to subscribe to cash plus
Final Thought
At the end of the day, financial freedom isn’t just about the ‘big wins’, it’s about the efficiency of your cash. If you have RM1,000 just sitting there, it could be earning you RM0.10 a day. That might sound small, but never underestimate the power of compounding, every sen counts toward the bigger picture.
Stop letting your cash sit idle. With Moomoo Cash Plus, you can start putting your money to work with as little as RM0.01 without changing how you manage your portfolio.
*T&Cs apply. All views expressed in this blog are the independent opinions of Ziet, which are not shared by Moomoo Securities Malaysia Sdn. Bhd. (“Moomoo MY”). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
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