Weekly Sprout Newsletter 🌱

Gain financial insights in minutes

The newsletter that keeps you up-to-date on the financial markets. It’s fun, informative, and free!

Insights

Savings

Webull Moneybull Review: Latest cash management account to park your idle cash

28 Mar 2023

Webull Moneybull allows you to potentially earn more on your idle cash without missing out on any trading opportunities.
Webull Moneybull review

Beansprout exclusive flash deal:  Receive a S$20 Grab voucher in addition to welcome rewards worth up to US$500 when you sign up for a Webull account via Beansprout and fund any amount*

What happened?

Many investors have been looking for ways to make their spare cash work harder as interest rates have gone up.

In the past week, Webull launched Moneybull as an option for investors to explore outside of T-bills and Singapore Savings Bonds

Let's take a look at the Webull Moneybull to see whether it is a cash management account you should consider. 

What is Webull Moneybull?

In case you are not familiar with Webull, it is a low-cost broker which launched in Singapore last year. Read our review here.

Moneyball is a wealth management tool that allows you to earn a yield on your idle cash. 

The yield is generated by automatically investing your idle cash into underlying cash funds. 

These cash funds are effectively mutual funds that invest in short-term debt securities that are seen to be low-risk. 

What does Webull Moneybull invest in?

When we checked what these funds are, we found out that they are Fullerton USD Cash Fund A  and Fullerton SGD Cash Fund A.

As of 28th March 2023, the Fullerton USD Cash Fund A generated a 7-day annualised yield of 4.73%. 

The Fullerton SGD Cash Fund A generated a slightly lower 7-day annualised yield of 3.82%. 

This is not surprising, since the investment objective of the Fullerton SGD Cash Fund A is to “provide investors with liquidity and a return that is comparable to that of the Singapore Dollar Banks Savings Deposits rate”

The USD fund generated a higher yield as the deposit rate in the U.S. has been higher than that in Singapore. 

Source: Webull app screenshot

 

What are the advantages of Webull Moneybull?

#1 – Fund is held as bank deposits 

Using the USD fund as an example, it holds US dollar deposits with eligible financial institutions. 

Based on the fund’s latest factsheet, these US dollar deposits are held with financial institutions such as Saudi National Bank and Sumitomo Mitsui Trust Bank.  

The placement period to maturity of these assets is generally very short term, with 99% of assets maturing within 4 weeks.

A picture containing graphical user interface

Description automatically generated
Source: Fullerton Fund Management

#2 – Relatively low cost

Webull does not charge any subscription and redemption fees for Moneybull.  

The fee incurred lies mainly in the expense ratio of the funds. For example, the Fullerton USD Cash Fund an expense ratio of 0.12% as of February 2023. 

#3 – Greater flexibility 

You can continue trading with your Webull account even when your funds are in Moneybull.

You will receive 99% of the market value of your Moneybull position as your Buying Power for your trades. 

When you do not have sufficient cash to settle your trades, the funds from your Moneybull position will be auto-redeemed.

What are the risks of Webull Moneybull?

#1 – Not capital guaranteed

While the money is put into US dollar deposits, they are not completely risk free.

Moneybull is not capital guaranteed. This means that there is still a possibility that you might lose your money.

For example, we have recently seen how the collapse of Silicon Valley Bank led to delays faced in the withdrawal of deposits before US regulators stepped in. 

It might be worth knowing that deposits into Webull Moneybull is not insured under Singapore Deposit Insurance Corporation Limited (SDIC).

What would Beansprout do?

Webull Moneybull can allow you to earn a potentially higher yield on your idle cash as a money market fund.

To make this an even better deal, new account holders who open a Webull account and fund any amount will receive a welcome gift of US$50-US$500. Read our step-by-step-guide on how to do so.

Beansprout exclusive flash deal:  Receive a S$20 Grab voucher in addition to Webull welcome rewards when you sign up for a Webull account via Beansprout and fund any amount* 

If you are looking to take advantage of the promotion, sign up with Webull today!

*T&Cs apply. 

lightbulb Flash deal!

Sign up for a Webull account via Beansprout and earn S$20 Grab voucher and welcome rewards of US$50-500.

Read also