![]() ![]() If CASA is really badly affected, it’s going to affect Malaysian banks Basel 4 capital adequacy ratios compliance. It remains to be seen how retail banking business such as housing loans etc will be affected. GO+ will over time probably affect bank funding costs. There could be implications not foreseen by Bank Negara.īanks with their CASA holdings (Current Account Savings Accounts) unfairly enjoy access to cheap funding. It’s going to be interesting to see the impact on banks. You will have to decide on either getting “freebies” from eWallets which are funded with your cash balances in the eWallets or earning investment returns such as GO+. GO+ is probably the start of financial products tsunami weaving into people’s daily lives.ĮWallets will need to take the same route. Additionally as mentioned, it’s neither capital guaranteed nor capital protected under PIDM. ( 5) Not Shariah Compliant and no PIDM protected.Ĭurrently Principal’s e-Cash offered isn’t shariah compliant. It allows the ordinary person to have all the advantages of compounding of investments. ![]() If it’s after 4pm, you only start earning daily returns on that amount the following day. To earn daily earnings from your GO+ total balance, you must CASH-IN (invest) before 4pm to start earning the next day. ( 4) Returns are credited to your investment account daily. Note there is no auto sweep into GO+, and rightly so, as this is an investment and not a deposit. For requests made after 4pm, the funds will be in your bank account 2 days later. If you request a cash out to a bank account before 4pm, your funds will be available the next day. This is a neat feature as it makes seamless use of the money market fund. There’s currently no charges for that.Ĭashing out to the eWallet is done automatically whenever the eWallet balance is too low to transact. Investors can cash-out directly to their bank account. Instead of the “Cash In” icon which implies a bank deposit, it should have been “Invest” or “Entry”. The main caution isn’t so much the fees (after all 1.47% after fees is better than zero), but to highlight your monies aren’t deposited (as in a bank account) but rather invested.īecause it’s an investment (and not a bank deposit), it’s neither capital guaranteed nor PIDM protected i.e there’s risk present, even though it’s a money market fund.īecause of the tiny risk, Touch ’n Go and Principal should have done a better job with the interface. There has been a lot of noise on social media complaining about the fees involved and how consumers aren’t aware it’s actually an investment. The bank account needs to be under your name i.e. You can CASH-IN via your Touch ’n Go balance or via online banking through FPX. This service is only for Malaysians above 18 years old with a verified account. Touch ’n Go eWallet users can start investing with a minimum of RM10. This is where the financial inclusion “feature” comes in. ![]() GO+, Touch ’n Go is offering you to invest with Principal’s e-Cash Fund - a Money Market Fund. Touch ’n Go is licensed by the Securities Commission to operate as a Recognised Market Operator. (1) You are investing with CIMB’s Principal Asset Management. Here are the 5 things you need to know about GO+ To get started with GO+, simply upgrade your account by tapping the GO+ icon located at the home screen. Idle cash balances in eWallets are the norm. Rather than the delay tactics unit trust companies put their customers into, go allows you to redeem your investments automatically or with the click of a button. GO+ also makes it easier for investors to redeem their investments. Making it convenient for ordinary consumers to access money market funds for interest income 4x to 5x better than savings account, banks are now in a quandary. GO+ is “revolutionary”, because it closed a gap for banks and unit trust companies refused to plug. With GO+, ordinary consumers enjoy money market interest rates (which are much higher than savings accounts) with all the convenience of e-wallets.īy launching GO+, Touch ’n Go has signalled to the public, fintech is more than getting bonus points for lucky draw. Take note with any investment, there is the risk of capital loss, no matter how low the risk. In essence it is a micro-investment scheme. GO+ shouldn’t be mistaken for a deposit taking service. Touch ’n Go officially launched GO+ with a new investment feature allowing it’s eWallet users to earn daily returns from their balance. ![]()
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