31st December 2021 - 2 min read
Digital cash management platform Versa has notified its users that they will no longer be able to earn from overnight interest. This comes following the removal of the interest as one of the features offered by the Affin Hwang Enhanced Deposit Fund (EDF), slated to take effect starting from 1 January 2022.
To explain, Versa’s cash management service is provided in partnership with Affin Hwang Asset Management (AHAM), where users’ funds are invested in the Affin Hwang EDF. One of the perks allowed by the fund is the overnight interest – described as an interest that you earn if it takes 24 hours or more to process your deposits.
“This usually happens when you deposit on a Friday after 2.30pm (our cut-off time), on weekends, or on public holidays. This is an added bonus, and does not affect your returns when invested in the fund,” the platform shared in an email sent out to users.
Versa further clarified that the removal of the overnight interest is attributed to recent changes in tax ruling by the government, which in turn, prompted Affin Hwang to adjust the features provided by its retail-focused money market funds.
“In line with this, AHAM will be streamlining and differentiating the features that it offers for its retail-focused money market funds and its institutional investor-focused money market funds. Thus, Affin Hwang’s Enhanced Deposit Fund (a retail-focused money market fund) will no longer offer its investors Overnight Interest effective on 1 Jan 2022,” Versa elaborated.
Versa also took the opportunity to reassure its users that as retail customers, they will not be affected by any tax implications. It also advised users to time their deposits appropriately for a more seamless investment experience; whenever possible, try to deposit on working days before Versa’s cut-off period at 2.30pm, or if you must deposit after cut-off hours, ensure that the next day is a working day.
If you have enquiries regarding this latest update, you can email Versa at [email protected].
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world