Syfe Cash+ vs Dash PET – Which Is Better?

Syfe Cash vs Dash Pet

With interest rates on bank accounts being really low, you may want to look for alternatives to store your funds.

2 of the more popular options include Syfe Cash+ and Dash PET.

How do they differ and which one should you choose?

The difference between Syfe Cash+ and Dash PET

Syfe Cash+ is a cash management portfolio, while Dash PET is an insurance savings plan. Dash PET provides a slightly better rate of return (only for the first year). Meanwhile, Syfe Cash+ gives you more flexibility as you do not have to meet that many conditions.

Here is an in-depth comparison between these accounts:

Type of account

Syfe Cash+ is a cash management portfolio. Syfe invests your money into funds that contain the following assets:

  1. Short term fixed deposits
  2. Short term bonds
  3. Commercial bills

These assets allow you to earn a higher yield compared to leaving it in your savings account!

Meanwhile, Dash PET is an insurance savings plan provided by Singtel Dash.

However, the actual insurance policy is underwritten by Etiqa, an insurance company.

This plan provides you with insurance for certain conditions, such as:

  1. Death (105% of Account Value)
  2. Financial assistance benefit for COVID-19

Since this is a life insurance plan with a ‘sum assured‘ payout, you are able to make multiple claims from your insurance policies.

You are also able to earn a decent return rate on your savings too.

It is important to note that neither account is a savings account or a fixed deposit!

Yield rates

Here are the projected yields that you’ll earn from each account, based on the amount that you have inside:

AmountSyfe Cash+Dash PET
$0 – $10,0001.5%1.7% (1st year)
≥ $10,0001.5%1.2% (1st year)

The yield rate for Syfe Cash+ is slightly higher compared to StashAway Simple’s yield.

Syfe Cash+’s yield depends on the funds’ performances

The yields you receive from Syfe Cash+ are not guaranteed.

Syfe recently lowered its projected yield from 1.75% to 1.5% to reflect the low interest rate environment we are in.

However, this is a projected yield. There is a possibility that the underlying funds in Syfe Cash+ may perform better or worse than this projected yield!

Dash PET’s crediting rate is not fixed

Dash PET has a slightly different crediting rate. For the first year, you are able to receive a guaranteed 1% rate, with a bonus of:

  1. 0.7% for the first $10k
  2. 0.2% for any amounts above $10k

However, both of these crediting rates are only guaranteed for the first year after you’ve started the policy.

Dash PET Crediting Rate

After that, Dash PET has a guaranteed crediting rate of 0%!

Etiqa may choose to change the crediting rate, if market conditions are poor.

As such, you’ll need to consider this uncertainty of the crediting rate being changed any time!

Investment of your funds

Syfe Cash+ invests your money into 3 funds:

  1. LionGlobal SGD Money Market Fund
  2. LionGlobal SGD Enhanced Liquidity Fund
  3. LionGlobal Short Duration Bond Fund
Syfe Cash Dashboard

As such, they are just a platform that gives you access to these funds!

Meanwhile, Etiqa does not disclose where they invest your funds into. However, this should most likely be short term bonds.

This is could be how they are able to give you a rather high yield for your first $10k!

Crediting of yield

For Syfe Cash+, your money is invested into the 3 funds that form the portfolio. These funds are mutual funds.

As such, each unit that you purchase will have a net asset value.

Mutual funds will only update their net asset value at the end of each trading day. This means that if the fund has increased in value, your portfolio will increase too!

You can see how your Cash+ portfolio changes in value each day.

Syfe Cash Portfolio Change

For Dash PET, your returns are calculated daily based on the crediting rate.

However, the returns will only be credited on the 1st of every calendar month.

This is similar to how a bank account works.

Are the funds capital guaranteed?

Syfe Cash+ is not a capital guaranteed investment as it invests your money into individual mutual funds.

The returns you receive from Cash+ depends on the performances of these funds.

However, the funds that Syfe invests in are relatively safe. Even if you may have negative performances in one day, you should still receive a net positive return in the long run.

Meanwhile, Etiqa states that Dash PET is capital guaranteed in the policy form.

Dash PET Capital Guaranteed

As such, Dash PET gives you slightly more assurance if you are more risk averse.

Minimum amount

For Syfe Cash+, you do not have any minimum to start using the platform. You can even invest $1 into the portfolio!

However if you have a small amount in your portfolio, the returns that you earn are pretty low too.

To earn a higher yield on your money, you may want to put a larger amount inside.

Meanwhile for Dash PET, you are required to put in a minimum of $50 to receive the interest credit each month.

Dash PET Minimum Amount

The minimum amount is really low, and you should be able to meet the requirement.

If your total amount falls below $50, any interest you earn will be forfeited!

Speed of deposits

When you deposit your funds into Syfe Cash+, you can do so by a few methods:

  1. FAST transfer
  2. PayNow

Syfe takes about 2-4 business days to receive your deposits. After that, they’ll still need to invest your money into the 3 funds!

This may take another day or so.

Syfe Cash Time Taken To Invest In Fund

Meanwhile for Dash PET, there are 3 ways that you can deposit your funds:

  1. Dash Wallet
  2. PayNow
  3. eNETs

The minimum top up using your Dash wallet or PayNow is $1. If you choose to top up via eNETS, the minimum top up amount is $50.

All of these methods will credit your funds instantly into Dash PET. As such, you can start to earn interest almost immediately!

Withdrawals

When you submit a withdrawal request to Syfe Cash+, it may take 2-5 business days before your funds are credited to your bank account.

This takes quite a while before you receive your funds! Due to this poorer liquidity, I would not suggest leaving your emergency funds with Cash+.

It is possible for you to leave a portion of your emergency funds inside Cash+. However, you should not leave your entire emergency fund inside!

Dash PET may have faster withdrawals

When you want to withdraw from Dash PET, you can use 2 methods:

  1. PayNow
  2. Transfer to Dash Wallet

When you make a transfer to PayNow, you will incur a withdrawal fee of $0.70. However, since you can withdraw funds from your Dash Wallet, you might as well withdraw to it instead!

Most of the time, the withdrawal should be almost instant. However, Etiqa has included this clause in their policy:

Dash PET Withdrawal Delay

Etiqa may delay your withdrawal for up to 6 months if there is a surge of withdrawals!

This may be a bit worrying for you. However, Etiqa has included this same clause in their previous policies, such as:

  1. ELASTIQ
  2. GIGANTIQ

As such, I think it’s more of a fail-safe, in the event that a huge surge of withdrawals happen! For most cases, I do not think they may take that long to process your withdrawal request.

Fees

Syfe Cash+ does not charge you any fees when you are using either account.

For Dash PET, you will only be charged a $0.70 transaction fee if you choose to withdraw via PayNow.

However, you will need to pay an expense ratio for the funds that you hold with Syfe Cash+.

FundExpense Ratio
LionGlobal SGD
Money Market Fund
0.35%
LionGlobal SGD
Enhanced Liquidity Fund
0.36%
LionGlobal Short Duration
Bond Fund
0.34%

Based on the portfolio allocation of these funds, you are expected to pay a total of 0.35% in fees.

However, Syfe has already taken these expense ratios into account. The projected yield that you receive is after the deduction of any fees.

Syfe also provides you with a trailer fee rebate too!

Trailer fees are fees that a fund manager pays a platform. This is similar to a commission that the platform receives for introducing the investor to the fund.

Syfe provides you with a 0.30% rebate. Essentially, you are only paying 0.05% in fees!

As such, this is how you receive the 1.5% yield.

Returns or FeesTotal Yield
Projected Return1.55%
Fund-Level Fees(0.35%)
Trailer Fee Rebate0.3%
Platform Fees0%
Net Return1.5%

Safety of your funds

You may be wondering how safe your funds are with either account. Here’s what you need to know:

Syfe has a Capital Markets Service Licence

Syfe holds a Capital Markets Service Licence that is issued by the MAS.

Under this licence, your funds with Syfe have to be kept separately from Syfe’s accounts.

In the even that Syfe closes down, you will still be able to have access to your funds!

Usually there will be 2 choices that you can make:

  1. Sell off your holdings at the current market price
  2. Transfer your holdings to another custodian that takes over Syfe

If Syfe closes down, it may not matter that much if you only invest in Syfe Cash+. This is because mutual funds can be traded in fractional units.

However, you may use some of their investment portfolios, including:

  1. Equity 100
  2. REIT+
  3. Global ARI
  4. Core

Syfe allows you to invest in fractional units of these ETFs. This may pose problems when Syfe closes down.

You can read my analysis on why Smartly closed down to find out more.

Dash PET is protected by the SDIC

Since Dash PET is a life insurance plan, it is insured under the Singapore Deposit Insurance Scheme (SDIC).

Your funds in Dash PET are protected by the Policy Owner’s Protection Scheme.

In the event that Etiqa closes down, your funds may be insured up to $100k.

This should give you some reassurance that your funds are rather safe with Etiqa!

Verdict

Here is a comparison between Syfe Cash+ and the Dash PET:

Syfe Cash+Dash PET
Type of AccountCash Management PortfolioInsurance Savings Plan
Yield Rate1.5%For first year:
1.7% (first $10k),
1.2% (≥ $10k)
Crediting of YieldDaily (depends on  market performance)Monthly
Are Funds Capital Guaranteed?NoYes (minimum crediting
rate is 0% after 1st year)
Minimum Account AmountNoneMinimum balance of $50
Minimum Top Up And Withdrawal AmountNone$1 for both top ups and
withdrawals, except
for eNETS ($50)
Speed of Deposits2-4 business daysAlmost instant
Speed of Withdrawals2-5 business daysAlmost instant, but may
be up to 6 months
Fees0.05% (after trailer
fee rebate)
$0.70 transaction fee if withdrawing funds via PayNow
Safety of FundsLicensed by MAS
(CMS Licence)
Insured under SDIC

So which account should you use?

Use Syfe Cash+ for more predictable returns

Syfe Cash+ has a slightly more predictable return rate. This is because they will invest your money into rather low-risk funds.

These funds should provide continuous and stable returns in the long run.

However, the rate of return is very dependent on the prevailing interest rates. If interest rates continue to be low, there may be a chance that Syfe may lower the projected yield again.

Moreover, the time taken to withdraw your funds is much longer compared to Dash PET. Due to this poorer liquidity, I would suggest using Syfe Cash+ if you are intending to save for a short-term goal.

Use Dash PET for faster withdrawals and a higher crediting rate for the first year

Dash PET has a higher guaranteed rate of 1.7% for your first $10k. However, this rate is only for the first year after you’ve started your policy.

If the interest rates continue to be low as well, Etiqa may decide to lower the crediting rates too!

Due to this unpredictability, you may want to consider only placing $10k inside.

Dash PET does provide faster withdrawals compared to Syfe Cash+. However, there may be a chance that your withdrawal may be delayed by up to 6 months!

As such, Dash PET is also less liquid compared to a bank account. I would not recommend placing your entire emergency fund inside Dash PET.

However, it may be possible for you to leave some inside as part of your tiered emergency fund strategy!

Conclusion

Syfe Cash+ and Dash PET are both good ways of ensuring that your cash reserves do not erode due to inflation.

Syfe Cash+ seems to have lesser conditions compared to Dash PET. Moreover, you are able to freely deposit and withdraw from the account.

Dash PET provides a slightly higher return, but only for your first policy year.

Ultimately, the rate of returns between both accounts are rather comparable! As such, it may be even possible for you to use both accounts together.

Syfe Referral (Up to $30,000 SGD managed for free for 6 months)

If you are interested in signing up for Syfe, you can use the referral code ‘FIPHARMwhen you are creating your account. You will have your first $30,000 invested with Syfe managed for free for your first 6 months.

You will be able to save up to $75 worth of fees!

This applies only to the money that you’ve invested in Syfe’s 3 portfolios. If you are only using Syfe Cash+, you will not be charged any fees by Syfe!

Syfe Referral

You can view more information about this referral program on Syfe’s website.

Dash Referral (800 Welcome Bonus Points)

If you are interested in signing up for Singtel Dash, you can use my referral link to sign up.

Alternatively, you can use my referral code ‘DASH-R1W67‘ when you sign up.

You will be able to receive 800 welcome bonus points once you either make a:

  1. Dash payment
  2. Singtel prepaid top-up (minimum $10)

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