Never used RPlus, sus AF 😅 I don't trust their security protocol when submitting personal info. Applied Versa standalone without through 3rd party.

This post has been edited by DragonReine: Apr 13 2021, 12:42 AM

Check app Help Center > Frequently Asked Questions > How Is Interest Calculated, they give a rough formula there.

Note that MMF net asset value fluctuates to a small degree which might affect your interest calculation.

If based strictly on Versa's declared policy, Xander's words are incorrect because Versa calculates only based on days it's reflected in balance

In fact the way you're going about by doing withdrawal before dividend payout, you cannot pakai the idea of "interest"

How MMF works:

1) When you "deposit" money into Versa, you buy units at the net asset value (NAV) for the day the units are booked for you
2) As you hold into those units, profits slowly increase, which will reflect in NAV of each unit which will increase as profits are calculated into the NAV
3) On the day of distribution, the fund will deduct the profits accrued from NAV and pay out in the form of cash (dividend) which Versa auto reinvests as units. The amount they pay is depending on the number of units you hold on dividend calculation day (example: if you hold 10000 units on distribution calculation date, and distribution is 0.0009 sen per unit, you get 0.0009 x 10000 = 9 sen). So your NAV per unit goes down, but the number of units go up, so you've profited in terms of number of units (and why your balance won't exactly change).
4) If, however, you deposit and then withdraw shortly after you buy units BEFORE dividend payout date, what happens is that usually you actually sell your units off at a higher NAV, so you effectively "earn interest" because you bought lower and sell higher. If you want to know if you've earned interest, you can look at the NAV price booked during your deposit processing vs the NAV price when your withdrawal is processed.
5) The every two week dividend will only pay based on number of units you have on dividend day, but if you withdraw in the case of #4 you essentially got your dividend/profit early.

Hope that makes sense to you.

This post has been edited by DragonReine: Apr 14 2021, 09:19 PM

If liquidity is your concern but you want current FD-like rates, stick to Versa. Go+'s rate is projected to be lower than FDs

Yes, you've been looking at it the wrong angle.

Your misunderstanding is because you're stuck on the idea of "interest" in the way that it works with savings account/current account/fixed deposit or hybrid accounts like Frank, where it's calculated on monthly average balance/yearly average balance.

Versa/StashAway Simple etc. DO NOT work the same way because you're dealing with money market funds which to end user works like Unit Trust/Mutual Funds, where earnings are paid in the form of distribution based on number of units.

refer back again to my post here, item #4 and #5:

This post has been edited by DragonReine: Apr 19 2021, 10:32 AM

You're "earning interest" from cash instruments aka Fixed Deposits (and a small percentage in short term bonds (loans) to government and corporate bodies) that MMFs invest in, the interest from FDs and the loan interest from bonds indirectly goes to you via the NAV and distribution. So technically not wrong, although it's again not the way most people think when related to savings accounts/FDs. I'm not sure if it's wrong per se, I'm no legal expert in marketing language

Versa explains how MMFs "gain interest" in their article "Where Does Your Money Go" published on their platform on 8 April 2021, in case you need an in depth explanation of how MMFs invest in FDs.

This post has been edited by DragonReine: Apr 19 2021, 11:10 AM