Tiger Vault Review: Most comprehensive cash management account

What is Tiger Vault?

Tiger Vault is a cash management solution by Tiger Brokers. 

It offers you a way to earn a potentially higher yield on your spare cash by investing in various mutual funds with relatively stable returns, low risk ratings and high liquidity. 

What does Tiger Vault invest in?

There are nine funds available on Tiger Vault as of 28 June 2024.

This would include five SGD denominated funds and four USD denominated funds.

The SGD denominated funds include:

• Fullerton SGD Cash Fund 'A' Acc
• United SGD Money Market 'D' Acc
• Lion Global SGD Money Market 'A' Acc
• Lion Global SGD Enhanced Liquidity 'A' 
• Phillip Money Market Fund 'A'

The USD denominated funds include:

• CSOP USD Money Market Fund
• Phillip USD Money Market Fund 'A'
• Lion Global USD Enhanced Liquidity 'A' 
• Fullerton USD Cash 'A' Acc

As we share in our Guide to Best Cash Management Accounts in Singapore, the Fullerton SGD Cash Fund has the largest fund size, lowest expense ratio, and one of the highest gross yield amongst the money market funds as of June 2024. 

You can read more about the Fullerton SGD Cash Fund here.

The Fullerton SGD Cash Fund offers a 7-day annualised yield of 3.66% as of 28 June 2024. This is close to the yield on the 6-month Singapore T-bill, and above the 1-year return on the SSB. 

What are the advantages of Tiger Vault?

#1 - Relatively safe investment option

According to Tiger Brokers, one of the benefits of Tiger Vault is that the risk of negative return on any one day is low, as the underlying funds invest in safe assets like fixed deposits and government bonds. 

Looking at the historical returns of Fullerton Cash Fund since its inception in 2009, there has not been any negative monthly return.

Fullerton is a reputable fund management company and part of Seviora, a holding company established by Temasek. NTUC Income is also a minority shareholder of Fullerton. 

#2 - Low-cost 

The other benefit is that this is a low-cost investment option as subscription and redemption fees are zero. 

The fee incurred lies mainly in the expense ratio of the funds. For example, the Fullerton Cash Fund has an expense ratio of 0.15% for financial year ended 31 March 2022. 

#3 - Start with a small amount

You can invest from as low as $1, which is great if you want to start with a small amount. 

#4 - Flexible

Tiger Vault is highly liquid. There is no lock-in period and you can use your funds in Tiger Vault to pay for investment products on the Tiger Brokers platform with no lag time. 

However, do note that you can only use 99% of your balance in Tiger Vault to pay for investments. This is to provide a buffer for any changes in the value of the underlying funds and foreign currency exchange rate fluctuation. 

What are the risks of Tiger Vault?

#1 - Not capital guaranteed

Tiger Vault is not capital guaranteed. While the primary objective of the cash management fund is to achieve a return that is comparable to the SGD savings deposit rate, there is effectively still a chance that there could be a negative return in a single day in some extreme cases. 

#2 - Not insured under SDIC

Deposits into Tiger Vault are not insured under Singapore Deposit Insurance Corporation Limited (SDIC).

What is Tiger Vault Auto-Sweep?

You may have noticed an option to set up Auto-Sweep within Tiger Vault. 

When you opt-in to the Auto-Sweep feature, Tiger Brokers will sweep your cash balance into Tiger Vault. 

You will need to select one fund per currency when setting up Auto Sweep. 

If you would like to pause Auto-Sweep, you may choose to pause for 3 days, 7 days, 10 days or just pause indefinitely and restore whenever you want.

What is Tiger Brokers?

Pros: Licensed by the Monetary Authority of Singapore (MAS) Competitive fees for trading US stocks, ETFs and options Offer access to money market funds through Tiger Vault Attractive sign-up promo	Cons: Not able to invest with CPF/SRS funds No access to London Stock Exchange

What would Beansprout do?

If you are looking for another place to park your idle cash, the Tiger Vault would be another option to explore.

It offers you the following advantages:

• Quick subscription and redemption as the funds can be withdrawn at any time
• Relatively safe underlying fund selection 

Compared to other cash management accounts, Tiger Vault offers the widest selection of funds to choose from. 

To compare Tiger Vault to other cash management accounts, check out our Guide to Best Cash Management Accounts in Singapore.

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