Dear readers, there is a new financial firm in town: Chocolate Finance. And from what one can see on the Chocolate Finance’s website, there is an attractive tagline: “Enjoy 4.2% on your first $20K”. The footnote below the tagline reads “and a target of 3.5% per annum on any amount above that. Are your smiling yet?”.
I first came to know of Chocolate Finance via an article on the firm in The Edge Singapore magazine for last week. Henry Golding, who shot to fame in the 2018 movie, “Crazy Rich Asians” is the company’s ambassador. I understand from the article that Chocolate Finance was founded by the founder of Singlife, Walter de Oude. Walter de Oude spent nearly a decade in HSBC, holding a range of roles from Chief Actuary and Head of Products, Deputy CEO and then CEO.
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On the top of Chocolate Finance, there was a banner that says from 1 Nov 2024, the returns of Chocolate Finance’s will be updated to market shifts as follows:
a) 3.6% on first $20K
b) 3.2% on next $30K and
c) a target of 3.2% of balance above $50K
Looking at the above interest rates, it seems that this new kid on town could be offering one of the best interest rates in town. And it is also stated that the firm is licensed by Monetary Authority of Singapore, this seems to add another pedigree (beside the fact that the firm is founded by the Founder of Singlife) to the company.
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As I navigate through the website, I was greeted by a dialog box (with a picture of Henry beside it once more) to get the Chocolate Finance app and sign up now. And there does not seem to be any physical outlet of the company. In gist, this new kid on the block seems to be like many of the newer finance companies which operates solely through apps.
From Chocolate Finance’s website, the deposits from savers to Chocolate Finance is deposited into a portfolio of fixed funds to generate the said interest rates. If for some reasons, the portfolio is not able to generate the stated interest rates, the difference will be topped up so that the deposit holders can enjoy the target return during the qualifying period. The qualifying period is whichever the earlier of (a) from now until 31 Dec 2024 or (b) time when the assets under management for the Chocolate Managed Account reaches $500 million. It is also stated in the website that Chocolate Finance is not a bank and hence is not covered by the Singapore Deposit Insurance Corporation (SDIC). In the event that anything happens to Chocolate Finance, the funds will be ringfenced.I thought this is an important note that interested applicants should know.
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In terms of withdrawal, instant receipt of money for withdrawals up to $20K and receipts of money in the next 3 to 10 business days for withdrawals above $20K. There is also a referral commission of $5 per friend that Chocolate account holder successfully invites to sign up.
Like Chocolate, the interest rates from Chocolate Finance seems to be very attractive indeed! Please note that this article is not a recommendation for Chocolate Finance. What’s more for myself, I invest in the traditional vehicles: Equities, Singapore Savings Bonds and Money Market Funds.