Chocolate Finance Review - Guaranteed 3.6% Returns True?

If you’re looking for a way to grow your savings beyond traditional bank accounts, Chocolate Finance offers a fresh alternative. With guaranteed interest, daily updates on your earnings, and no hoops to jump through, it’s a straightforward way to make your money work harder. But how does it really compare to savings accounts? Here’s everything you need to know:

Chocolate Finance is a Managed Funds Account

Chocolate Finance isn’t a pure savings account like the ones offered by traditional banks. Instead, it functions as a managed funds account. This means your money is pooled and managed to generate returns, and the interest is passed on to you.

Key Difference:

• Bank Savings Account: Your funds are held securely with SDIC insurance, but interest rates are low unless you meet stringent conditions.

• Chocolate Finance: Your money is actively managed to earn higher returns (up to 3.6% p.a. as of time of writing), and you see daily earnings, but it doesn’t come with SDIC protection.

Higher Interest Rates Without Tedious Requirements

While some bank savings accounts can offer higher interest rates, they often come with complex conditions:

• Minimum monthly salary crediting.

• Hitting a specific credit card spend.

• Paying bills or making investments with the same bank.

Missing even one of these requirements means losing out on the advertised interest.

With Chocolate Finance, it’s simple and straightforward:

• No salary crediting requirements.

• No credit card spending needed.

• Just deposit your money and start earning.

At the time of writing you’ll earn a guaranteed 3.6% p.a. for the first $20,000 deposited, and 3.2% for the next $30,000.

For funds after the initial $50,000 the target returns is at 3.2% p.a. (note this is not guaranteed anymore and depends on how well Chocolate Finance’s investment is performing)

Daily Interest Updates Keep You Motivated

Unlike bank savings accounts, where interest accrues monthly, Chocolate Finance lets you see your earnings daily.

• S$20,000 balance: ~S$1.97 per day.

• S$50,000 balance: ~S$4.60 per day.

This daily growth makes saving more rewarding and encourages you to keep your funds growing.

When Might Your Money Be at Risk?

While Chocolate Finance offers attractive returns, there are scenarios to consider:

• Liquidity Risk: If many users withdraw their funds at the same time, the app could face challenges managing liquidity.

• No SDIC Protection: Unlike traditional banks, funds in Chocolate Finance are not covered by Singapore’s Deposit Insurance Scheme.

That said, the chances of everyone withdrawing at the same time are quite low, and Chocolate Finance actively manages its funds to mitigate this risk.

Flexibility: Access Your Money Anytime

One of the biggest advantages is that Chocolate Finance doesn’t lock up your funds. Unlike fixed deposits or investment products:

• You can withdraw anytime without penalties.

• There’s no lock-in period, so your funds remain fully liquid.

This makes it ideal for emergency savings, short-term goals, or simply as a smarter alternative to parking cash in low-interest bank accounts.

Do note that for withdrawals over S$20k (or multiple withdrawals adding up to more than S$20k within any 1 given day) – You will receive your money in the next 3-10 business days.

Withdrawals under $20,000 within a given day would be almost instant.

Straightforward Savings with Higher Returns

Here’s how Chocolate Finance compares to traditional options:

You may want to explore Mari Bank Savings account which offers guaranteed 2.5% interest p.a. or GXS Bank Savings account which also offers guaranteed 2.68% interest p.a.

While their returns are lower than Chocolate Finance, but they’re insured with SDIC, so they’re like a traditional savings account but with substantially higher interest rate.

Conclusion: A Simple and Smart Alternative

If you’re tired of juggling banking conditions just to earn a slightly better interest rate, Chocolate Finance is a straightforward solution. With higher guaranteed returns, daily earnings updates, and full flexibility, it’s a great option for anyone looking to grow their savings.

While there are minimal risks, the benefits of earning 3.6% interest without hassle make Chocolate Finance a worthy alternative to traditional savings accounts.

If you’re interested you can use my referral link to sign up for an account.
https://share.chocolate.app/nxW9/0i5argav

Disclaimer: I’ll earn $5 for every successful sign up and when funds are deposited into the new account. The referee (i.e. new sign up) does not earn any bonus.

My Chocolate Finance Use Case

Here’s how I generally make use of Chocolate Finance