Stabilize and grow your portfolio with Mintos Smart Cash

Mintos Smart Cash allows you to invest your money in a money market fund (MMF), providing a unique opportunity to optimize your cash holdings. Money Market Funds are low-risk, highly liquid investments that focus on generating income by investing in safe, short-term assets such as bonds and bank deposits. Mintos Smart Cash stands out with its attractive returns currently up to 3.75% interest, combined with instant access to your money and low risk in a AAA-rated money market fund. With its many benefits, Mintos Smart Cash empowers you to maximize the potential of your money.

Mintos Smart Cash — part of a diversified portfolio

Mintos Smart Cash offers numerous benefits, including diversification, liquidity, capital preservation, and income. Let’s take a deeper look at each of these benefits.

  • Diversification: Smart Cash is a great addition to a diversified portfolio, helping protect against market volatility and ensuring a more balanced approach to growing wealth.
  • Enhanced liquidity: Smart Cash offers quick and easy access to cash for emergencies or short-term needs without disrupting the long-term investment strategy.
  • Capital preservation: By investing in a money market fund with the highest credit quality (AAA from the major rating agencies, S&P, Moody’s, and Fitch), Smart Cash focuses on maintaining the value of the initial investment while providing steady income. Smart Cash adds a low-risk element, smoothing out the effects of market fluctuation and reducing the impact of poor performance in any single asset class.
  • Income generation: Smart Cash provides regular interest income due to the higher yield on cash, which strengthens the income generating part of the portfolio.

When to use Smart Cash

Mintos Smart Cash can be a good match for certain investment goals. Let’s explore the different scenarios that are just right for Smart Cash.

Emergency fund

Situation: You want to maintain an emergency fund that is easily accessible but also earns some interest, instead of sitting idle in your checking account.
Action: You invest your emergency fund in Mintos Smart Cash.
Benefit: The fund remains liquid and can be withdrawn without penalties when needed, while still generating a high return.

Short-term savings for specific goals

Situation: You’re saving for a short-term goal, such as a vacation, home renovation, or a large purchase planned within the next year.
Action: You invest the savings in Mintos Smart Cash.
Benefit: The investment earns interest, increasing the savings over time, and can be withdrawn when the goal is reached without worrying about market volatility or long-term commitments.

Cash management for businesses

Situation: You have a small business or are a freelancer and want a way to manage excess cash that is not immediately needed for operational expenses.
Action: You invest surplus cash in Mintos Smart Cash.
Benefit: The funds remain liquid for any unexpected business needs, while earning a return, thereby improving overall cash flow management.

Temporary parking of funds

Situation: You are awaiting a better opportunity to invest in higher-yield but riskier assets, such as stocks.
Action: You temporarily park your funds in Mintos Smart Cash.
Benefit: Your funds are preserved and earn a stable return in the meantime, and you can quickly reallocate the money when the right opportunity arises without incurring losses or penalties.

Let’s compare: Smart Cash vs. bank deposits

When comparing Smart Cash to competing products, such as bank deposits, the advantages become clear. Smart Cash allows for easy and penalty-free withdrawals at any time, making it highly suitable for short-term financial needs or emergency funds. In contrast, bank deposits often lock funds for a specified term, with penalties for early withdrawal. Smart Cash also offers variable returns that can potentially be higher than the interest rates of bank deposits, providing greater earning potential.

Mintos Smart Cash

Overnight bank deposits

Term deposits

Withdrawals at any time

Withdrawals allowed at the end of the day

Locked funds for a specific period of time

Penalty-free withdrawals

Penalty-free withdrawals

Early withdrawal penalty

Up to 3.75% returns

Averaging 0.39% returns1

Returns are around 3.16%2

Interest is calculated daily and paid monthly

Interest is paid daily or monthly

Interest is paid annually, half-yearly, monthly, or on the maturity date

Highest credit quality (AAA from the major rating agencies, S&P, Moody’s, and Fitch)

Credit quality varies

Credit quality varies

Highly diversified by hundreds of issuers where funds are invested

Low diversification, with exposure to 1 bank

Low diversification, with exposure to 1 bank

Investors should consider their investment goals, risk tolerance, market conditions, and associated fees when determining the proportion of Smart Cash in their portfolio.

Whether used for emergency funds, short-term savings, cash management, or temporary parking of funds, Mintos Smart Cash provides flexibility. By integrating Smart Cash into a diversified investment strategy, investors can achieve a blend of liquidity, safety, and returns, meeting both immediate and long-term financial goals with confidence.

1 According to the European Central Bank, the average interest rate for overnight bank deposits in the EU is 0.39% as of March 2024.

2 According to the European Central Bank, the average interest rate for term deposits in the EU is 3.19% as of March 2024.

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