Summary
Since launching Aspire Yield, we've heard from hundreds of businesses curious about how it works, whether it's right for them, and what happens to their money. Some of you have been quick to dive in, while others are (understandably) taking a more cautious approach and asking the important questions before making any moves.
We get it. When it comes to managing your business's cash, you want clarity: no jargon, no fine print surprises, just straight answers.
So, we've rounded up the most common questions we've been getting about Yield and answered them here. Whether you're trying to figure out if your business qualifies, wondering about the risks, or just want to understand how money market funds actually work, you'll find your answers below.
How it Works
How does Aspire Yield work?
Yield allows you to earn returns by investing SGD and USD in relatively low-risk money market funds. Your funds are invested in the Fullerton SGD Cash Fund Class A and Fullerton USD Cash Fund Class A, managed by Fullerton Fund Management.
Your Yield Account is integrated with your Business Account, so you can switch between spending and investing anytime. There is no minimum investment amount or lock-in period, and you rmoney is accessible with next-business day liquidity.
What are Money Market Funds?
Money Market Funds (MMFs) are a type of low-risk investment where your money is pooled together with other investors' fundsy and placed in safe, short-term financial products such as government bonds, treasury bills, or cash-like instruments.
These underlying investments are high-quality instruments with short maturities (within a year), which helps MMFs keep your money safe while still earning interest. Unlike fixed deposits, MMFs have no lock-in periods—you can redeem your funds on any business day, making them ideal for businesses managing cash flow.
What am I investing in?
Fullerton SGD Cash Fund:
- SGD deposits with eligible financial institutions in Singapore
- Singapore government bills
- Non-deposit investment as defined under Money Market Funds guidelines (CIS Code)
Fullerton USD Cash Fund:
- USD deposits with eligible financial institutions in Singapore
- US government bills
- Non-deposit investment as defined under Money Market Funds guidelines (CIS Code)
How much can I expect to earn?
The funds aim to provide consistent earnings, but returns are not guaranteed and may fluctuate with interest rate environment and broader market conditions.
Returns shown are calculated based on the interest and income earned from the underlying assets held in the fund, such as government bills and fixed deposits placed with approved financial institutions. As per market convention, these are expressed as annualised yield, an estimate of what you could earn over a year if the current daily return rate remains consistent.
Can any business open a Yield account?
Due to compliance and tax laws and regulations, Yield is currently available only to businesses incorporated in Singapore that qualify as active Non-Financial Entities (NFEs), defined as:
- Having passive income* less than 50% of total gross income in the previous year
- Having less than 50% of assets used in production of passive income*
We are also not able to onboard companies that are more than 75% owned by U.S. Persons, or financial institutions and investment companies.
*Passive income includes: investment gains, dividends, interest, rents, royalties, etc.
Do I need to pay taxes for my earnings?
Aspire is not authorised to provide tax, legal or accounting advice. This guide is for informational purposes only. We recommend consulting a qualified tax professional if you have questions about your tax obligations.
For businesses operating in Singapore:
- Returns earned through Yield may be considered taxable income according to Singapore's tax laws
- The tax treatment can vary depending on your business activities, structure, and whether any exemptions or incentive schemes apply
- For detailed information, refer to the IRAS website, or speak with your tax consultant
Safety and Security
Are my investments risky?
Yield invests your funds in relatively low-risk money market funds managed by Fullerton Fund Management. These funds primarily hold short-term, high-quality financial products such as T-bills.
That said, all investments carry some level of risk. The value of your investment may fluctuate, and any past performance is not a guarantee of future or likely returns. We provide you real-time visibility of your earnings and the option of withdrawing your funds at any time with next-business-day access.
What happens to my money if Aspire or the fund manager becomes insolvent?
Your money is held in a trust account with a licensed bank, segregated from Aspire's corporate funds or assets. In the unlikely event of Aspire's insolvency, your monies remain protected.
In the unlikely event of Fullerton becoming insolvent, the fund's assets will not be affected as they are held by a third-party custodian and protected from Fullerton's creditors.
Is Aspire Yield regulated by MAS?
Aspire Yield is offered in Singapore by AFT SG 2 Pte. Ltd. (ASG2), which is regulated by the Monetary Authority of Singapore (MAS). ASG2 holds a Capital Markets Services (CMS) licence under the Securities and Futures Act, which allows it to:
- Deal in capital markets products (such as collective investment schemes, including money market funds), and
- Provide custodial services for those investments
You can verify ASG2's licence on the MAS Financial Institutions Directory.
Still have questions?
We're here to help. If you have questions that aren't covered here, reach out to our support team or check out our Help Center.
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Ready to start earning on your idle cash? Open your Yield account today.