Putting cash surplus into fixed deposit to earn the interest sounds pretty common right? Have you ever wondered the alternative way to maximize your company’s cash surplus or company savings?
Before moving any forward, let’s review how a traditional fixed deposit works.
Hereby, let’s introduce you to the most effective alternative method to grow your cash surplus —Cash Management Solution !
Basically, you put the cash surplus of your company into cash management fund. The gained interest is called income distribution. Since it is a retail fund, hence, the interest earning is considered as capital gain. With that is said, you will be exempted from corporate tax !
Let’s have a look at the comparison chart between the traditional fixed deposits method and also the cash management solution.
Sounds exciting right ? The matter doesn’t end here.
Let’s have a quick look of a case study of what the impact of Company X when putting its cash surplus as fixed deposits and as cash management solution.
What are the advantages of Cash Management Solution?
Making good choice is hard, but when you are offered a better choice, why not take it ?
Hope this article has given you new insights on the alternative method of handling your cash surplus.
Stay tuned to our next article !