Returns are guaranteed because your funds are placed in fixed deposits for your selected term with multiple partner banks to ensure your funds are diversified. This means your investment is not subject to market fluctuations.
The rate you lock in at the start of your term is fixed and will not change. At the end of the term, you will receive the full displayed return, subject only to the credit risk of the underlying banks.
When your selected term ends, you will receive the fixed deposit returns at the guaranteed rate locked in at the start of the term.
How guaranteed return works for Cash+ Guaranteed (USD)
For Cash+ Guaranteed (USD):
- Both your capital and returns are guaranteed in USD.
- If you fund your portfolio in SGD (or any non-USD currency), your deposit will first be converted to USD for investment.
- At maturity, both the capital and returns will be in USD.
If you choose to withdraw your proceeds in SGD (or another currency), the final amount you receive will depend on the prevailing exchange rate at the time of withdrawal.
As such, the SGD (or non-USD) amount received may differ from your original funding amount due to FX movements not because of changes to your guaranteed USD returns.
Example
You invest SGD 13,500 when the USD/SGD rate is 1.35, which converts to USD 10,000.
At maturity (1-month term at 4.35% p.a.), you receive USD 10,036.25.
Scenario 1: SGD strengthens
- USD/SGD at maturity: 1.30
- USD 10,036.25 → SGD 13,047
- This is lower than your original SGD deposit due to FX movement.
- Your USD capital and returns remain unchanged.
Scenario 2: SGD weakens
- USD/SGD at maturity: 1.38
- USD 10,036.25 → SGD 13,650
- You receive more SGD due to favourable FX movement.
- Again, your USD capital and returns remain unchanged.
Note: The capital and returns are guaranteed only in USD for Cash+ Guaranteed (USD).
