SYDNEY, Dec. 26, 2023 /PRNewswire/ — Amid the high interest rate environment in Australia, intuitive investment and trading platform moomoo has recently introduced Cash Plus, a cash management feature that sees the interest rate for eligible new clients’ uninvested cash balances increase to 6.8% per annum (p.a.) *.
The 6.8% p.a. rate is possible as moomoo aims to pay variable interest rates (currently at 3.75%) on participating clients’ uninvested cash balances in AUD and USD; on top of the standard 3.75% interest rate, moomoo would temporarily increase the interest rate received by eligible new clients to 6.8% p.a.
This competitive rate is available to new clients who sign up for a moomoo share trading account between December 2023 and end of January 2024, and is applicable to uninvested cash balances of up to AUD $100,000 per client.
Moomoo’s offer is one of the highest yields for uninvested cash in the entire brokerage industry and higher than the highest ongoing bank savings account interest rates (including bonus offers), according to Canstar[1] and Mozo[2].
Moomoo Vice President and Chief Market Strategist, Matt Wilson, says this promotion has been developed specifically with their Australian customers in mind, noting the turbulent economy and investing landscape Aussies have experienced in the last few years.
“Recent cash raises from the Reserve Bank of Australia may have impacted repayments for borrowers, but these raises also represent a fantastic opportunity for Australians seeking a competitive, high-yielding interest rate for their uninvested funds,” Mr. Wilson said.
In addition to the competitive 6.8% p.a. interest rate, moomoo Cash Plus program has no account maintenance fees, no minimum deposit requirement, and no lock-in period, which means join the Cash Plus program does not impact the buying power of your brokerage accounts. The funds in the program bank accounts are still part of a client’s securities account.
The Cash Plus program is easy and convenient—if your securities account dips into negative balance, funds will be automatically redeemed from the bank for repayment. When cash starts to grow in excess in your securities account, it will be swept into the bank account to earn interest.
How can moomoo pay an interest rate that is even higher than most high interest bank accounts？
The short answer is simple: it is not a bank account. Moomoo is an online share trading platform, not a bank, and the Cash Plus program is a cash management feature of a share trading account—not a bank deposit, a savings account, or deposit product.
The 3.75% p.a. interest on AUD cash balances are directly passed down from the interest earned from moomoo’s segregated client money trust account held with Commonwealth Bank of Australia. The interest on USD cash balances is passed down through moomoo’s US clearing partner, Futu Clearing Inc., ultimately from client fund accounts held with either JP Morgan Chase Bank N.A or BMO Bank N.A. in the United States.
The remaining gap between the variable basic rate and the 6.8% p.a. introductory rate, over the 180-day period, is then subsidised by moomoo at its own expense.
This introductory rate promotion is only applicable to uninvested balances of up to AUD $100,000 or equivalent per eligible new client, meaning the maximum amount of subsidised interest that can be earned by each client (assuming daily uninvested funds balance is maintained at exactly AUD $100,000 throughout the 180-day period) is approximately AUD $3,353.
Out of the maximum interest return of AUD $3,353, the amount subsidised by moomoo is approximately $1,500.
This generous subsidy aims to attract new clients, and allow them the opportunity to try moomoo’s unique features and services as an AI-powered share trading platform.
The promotional offer is only available for a limited period of time from 00:01 AM AET on 5 December 2023 to 23:59PM AET on 31 January 2024.
To join the Cash Plus program and enjoy the promotional offer, please visit: https://www.moomoo.com/au/activity/welcome
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[1] https://www.canstar.com.au/savings-accounts/best-savings-account-interest-rates/ |
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[2] https://mozo.com.au/savings-accounts/interest-rates |
*Additional Information about Cash Plus
The Cash Plus program is offered by Futu Securities (Australia) Ltd trading as Moomoo AU which is licensed and regulated in Australia (AFSL 224663).
Moomoo AU has robust internal systems and processes in place to ensure client funds’ security. All of Moomoo AU’s client funds are held in complete segregation with Moomoo’s own funds, complying with relevant laws and regulations in Australia.
The parent company of moomoo is NASDAQ-listed Futu Holdings (NASDAQ: FUTU), whose financial records are fully transparent and publicly available. As at 12 December 2023, FUTU has a market cap of US $7.39 billion.
As an international brand, moomoo is also licenced and regulated in other major markets including US, Hong Kong, Singapore, Japan and Canada. Moomoo is a strategic partner to key global financial institutions, including NYSE.
To view full Promotion T&Cs, please visit https://www.moomoo.com/au/support/topic6_428?from_platform=4&lang=en-us&platform_langArea=au
About moomoo
Moomoo supports Australian investors of all backgrounds and experience levels. Our mission is to eliminate barriers to investing and equip users with the tools they need to achieve their goals. Moomoo’s parent company is Nasdaq Listed (NASDAQ stock code: FUTU). It is a NYSE global strategic partner and is backed by various strategic and venture capital investors including Tencent, BlackRock Inc. and Sequoia Capital.
We believe investing and trading should be simple, seamless and intuitive. Moomoo has access to tools, resources and training to help you get ahead, regardless of your investment experience. Our community can invest in companies that they know and love across Australia, the US and Asia, all with just one app.
Whether you are looking to trade or invest in popular US stocks 24 hours a day, five days a week, see what asset management companies (AMCs) are buying and selling, access easy-to-understand company financials, or check analyst ratings, we’ve got you covered. Our free-to-access features allow you to learn from the pros, build your own strategies and leverage AI-powered tools to become a better trader.
For more information regarding moomoo, please visit moomoo’s official website at www.moomoo.com/au or feel free to email: pr@moomoo.com.
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SOURCE moomoo
