For redemptions from SGD Cash goals, you may opt for the redemption proceeds to be credited to Cash Management goals to earn some yield while you wait for your next investment opportunity.
Cash Management goals, such as Endowus Cash Smart, are designed to manage cash with relatively stable returns while maintaining liquidity. Primarily composed of cash and money market funds, they are meant to preserve capital and offer a better yield compared to traditional savings accounts.
How do I redeem to a Cash Management goal?
The redemption to cash management feature is currently available for SGD Cash goals with a redeemable value of at least $100, via the Endowus app. This feature is available when redeeming from one of the following goal types:
- General investing
- Passive income
- Mid to long-term investing
When you make a redemption, you may opt to have the proceeds:
- Transferred to a Cash Management goal;
- Credited to your Endowus cash balance; or
- Withdrawn to a linked bank account.
Goals eligible for redemption to cash management will have the option available as a redemption destination.
If you do not have existing Cash Management goals
- Log in to your Endowus account.
- Go to “Transfers” > “Make a redemption”.
- Select the goal you wish to redeem from.
- Select the Redeem to cash management option.
- Following the subsequent steps will take you through creating a Cash Smart - Secure goal, where the redemption proceeds will be credited.
- Input your redemption amount.
- Review the confirmation page and confirm via OTP to proceed.
To set up a customised or single-fund Cash Management goal for your redemption proceeds instead, you can create a new Cash Management goal (via Cash Smart or Fund Smart). Thereafter, you can follow the steps for existing cash management goals below.
If you have existing Cash Management goals
If you have eligible Cash Management goals, you will have the option to make redemptions to an existing Cash Management goal.
- Log in to your Endowus account.
- Go to “Transfers” > “Make a redemption”.
- Select the goal you wish to redeem from.
- Select the Redeem to cash management option.
- You may opt to either have the proceeds credited to an existing Cash Management goal on your Endowus account, or to create a new Cash Smart - Secure goal.
- Input your redemption amount.
- Review the confirmation page and confirm via OTP to proceed.
What should I take note of for redemptions to Cash Management goals?
Redemption to cash management requests cannot be cancelled upon confirmation. Once you have confirmed the request, should you wish to have your proceeds credited to your Endowus cash balance or withdrawn to a linked bank account, you can submit a new redemption order from the Cash Management goal when the transaction has settled.
The process is automated and typically takes up to 7 business days. This timeline accounts for:
- Redemption execution: Your redemption is submitted for execution on a valid trading day, excluding Singapore public holidays and fund-specific holidays.
- Investment execution: Settled funds are then invested into Cash Management goals.
- Fund settlement: The respective transactions will each take 3-4 business days to settle.
On your Endowus account:
- If you have opted to create a new Cash Smart - Secure goal, you will see an empty goal on your account.
- On your Activity & Balances, you will see a Redemption transaction.
- Once the Redemption transaction has settled, you will see an Investment transaction for the redemption proceeds into the relevant Cash Management goal.
The redemption proceeds in your Cash Management goal will begin earning yield as soon as the transactions have settled (investment’s status is “Completed”).
Endowus does not charge any additional fees for redemptions to Cash Management goals.
How can I use the money in a Cash Management goal?
You can set up a Transfer between goals to seamlessly transfer cash from a Cash Management goal to another goal via “Transfers” > “Transfer between goals” on your Endowus account. For more information: How do I transfer funds between goals?
Alternatively, you may simply make a redemption from the goal by going to “Transfers” > “Make a redemption” on your Endowus account.
About Cash Smart Secure
Cash Smart Secure is a portfolio of cash and money market funds invested in a diversified basket of low-risk securities such as institutional bank fixed deposits, as well as high-quality investment-grade and ultra short duration government and corporate debt instruments.
Cash Smart investors have daily liquidity (no lock-ups or penalties). Please note that Endowus uses a projected yield range, instead of a fixed yield, and the projections are updated on a monthly basis based on the latest updates from the respective fund managers.
Additionally, Cash Smart is an investment product and is not capital-guaranteed. Hence, it may experience positive or negative returns at the point of redemption.
For more information: