How is interest calcuated on Flexi-Cash?

Question: I have invested in flexi-cash and wish to clarify on the followings. You said that the investor earn based on the bid price minus 0.1%. Looking at SIBOR, there are 5 different rates, namely 1mth (3.5%), 2mths (3.5625%), 3mths (3.625%), 6 to 12mths (3.6875%).

If investor conduct withdrawals and/or additional deposits from time to time, which of these rates would be applicable and do you provide statements to show the details of all these transactions?

Reply: The interest will be based on the average yield of the money market fund. As the fund is invested in a mix of instruments of different tenure, you will get an effective average of these instruments.

Question: Your example shows that the interest rate would be converted to unit price. What is the formula on the conversion?

Reply: We compute the bid price of the unit every day. This bid price is posted daily. It should move daily according to the average rate yield earned by the investments.

Question: If I send a cheque, when will my interest start accruing?

Reply: We will compute the unit price based on the date of transaction. This should be the date that your cheque is submitted for clearance, or it could be the date that the cheque is cleared.