moomoo announces 180-day promotion of 6.8% yield on new customers’ cash balances

Rick Steves

“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.”

Investment and trading platform moomoo unveiled Cash Plus, a novel cash management feature. This feature significantly increases the interest rate for eligible new clients’ uninvested cash balances to 6.8% per annum (p.a.).

The 6.8% p.a. rate stems from moomoo’s strategy to offer variable interest rates, currently at 3.75%, on uninvested cash balances in both AUD and USD. Additionally, for eligible new clients, moomoo is boosting this rate to 6.8% p.a.

Promotion until end of January 2024

The offer is aimed at new clients who open a moomoo share trading account between December 2023 and the end of January 2024. It applies to uninvested cash balances up to AUD $100,000 per client.

Matt Wilson, Moomoo Vice President and Chief Market Strategist, highlighted the promotion’s design for Australian customers, acknowledging the challenging economic and investment climate in Australia in recent 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.”

Moomoo’s Cash Plus program is notable for its absence of account maintenance fees, minimum deposit requirements, and lock-in periods. The program’s structure ensures that joining it does not affect the buying power of brokerage accounts. Additionally, the funds remain a part of the client’s securities account, offering easy access and automatic management of balances.

moomoo subsidizing AU$1,500 out of cash balance of AU$100k

Moomoo can offer this high interest rate because it operates as an online share trading platform rather than a traditional bank. The 3.75% p.a. interest on AUD cash balances originates from interest earned in moomoo’s segregated client money trust account held with the Commonwealth Bank of Australia. The interest on USD cash balances comes through Futu Clearing Inc., from accounts held with JP Morgan Chase Bank N.A or BMO Bank N.A. in the United States.

The remaining difference between the basic rate and the 6.8% p.a. introductory rate is subsidized by moomoo. This subsidy is significant, as the maximum amount of interest a client can earn during the 180-day period is approximately AUD $3,353, with moomoo subsidizing about AUD $1,500 of this.

This introductory offer, valid only for a limited time, aims to attract new clients and introduce them to moomoo’s AI-powered trading platform features and services.

The Cash Plus program is part of Futu Securities (Australia) Ltd, trading as Moomoo AU, which adheres to strict regulatory standards in Australia (AFSL 224663). Moomoo AU ensures the security of client funds, maintaining complete segregation from its own funds.

Moomoo’s parent company, NASDAQ-listed Futu Holdings (NASDAQ: FUTU), boasts a market cap of US $7.39 billion as of 12 December 2023. Moomoo, a global brand, is licensed and regulated in various major markets and partners with key financial institutions like NYSE.

Moomoo supports a diverse range of Australian investors, offering tools and resources for all experience levels. The platform provides access to investment opportunities across Australia, the US, and Asia, and features AI-powered tools to enhance trading strategies.

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