It has been 3 years since I began placing my cash in Chocolate Finance, because it provided Singaporeans a brand new mannequin of investing our spare money to get returns increased than fastened deposits and with none lock-ins.
If you happen to’ve been following my protection since I first grilled their CEO Walter de Oude over espresso again in 2023, you’ll know I’ve by no means been one to simply take an organization’s phrase for it and name it a day. And if there was ever a 12 months that examined whether or not Chocolate Finance deserved the belief Singaporeans positioned in it, 2025 was completely that 12 months.
So right here’s my sincere 2026 replace: the charges have come down – as has the remainder of the market, it went by means of a worrying episode in March 2025 that despatched 1000’s of individuals right into a panic, and but – I’m nonetheless in.
It’s not solely satisfying to see my every day returns trickle in, but in addition a big elevate from how a lot my funds had been getting from the place they had been stored beforehand (in my checking account):
Let me stroll you thru all the pieces so you may resolve for your self whether or not Chocolate Finance deserves a spot in your private finance technique this 12 months.
What March 2025 confirmed
Some individuals misplaced religion in Chocolate Finance after its March 2025 incident final 12 months. Nevertheless, the best way I see it, what that confirmed was:
– the precise lack of information by most clients, in addition to
– the resilience of the corporate’s enterprise mannequin.
Once I first got here to find out about Chocolate Finance throughout their launch in 2023, I’ve repeatedly mentioned that they’re not a financial institution. However this truth appeared to have been misplaced on many individuals – maybe they signed up just because they had been hungry for the juicy returns, and did not do their due diligence (akin to studying this text first).
When a few YouTube movies went viral and brought on worry {that a} “financial institution run” was about to occur, 1000’s of consumers opened the app and requested to tug their funds suddenly.
Over S$500 million in withdrawals had been processed in that single week, and this was simply in Singapore’s market alone.
To be honest, I’m unsure if even the bigger finance establishments may have supported the identical. In spite of everything, only a few weeks in the past, even the world’s largest asset supervisor with greater than $10 trillion in property i.e. BlackRock blocked almost half of its traders who requested withdrawals from its $26 billion personal credit score fund from getting their a reimbursement. Not as a result of the fund had collapsed, however just because too many individuals needed out on the similar time, and the fund didn’t have the liquidity to pay all of them.
Now, right here’s the half that I feel acquired misplaced in all of the noise:
Our cash was by no means in danger.
When Chocolate Finance suspended on the spot withdrawals on 10 March 2025, citing “excessive demand”, what they actually meant was that the sheer quantity of withdrawals exceeded their skill to repay (by promoting funds) quick sufficient.
The panic acquired so dangerous that MAS needed to step in on 12 March to substantiate Chocolate Finance had absolutely met all necessities for buyer asset segregation.
Your funds – mine included – had been held in ringfenced, impartial custody accounts with custodians like HSBC and State Road your complete time. That is basically totally different from a financial institution run, the place depositors’ cash really sits on the financial institution’s stability sheet and might be in danger if the establishment fails.
That’s precisely why I didn’t see the necessity to pull my funds. If you happen to perceive how the underlying mechanism works, you’d know that the panic was unwarranted.
The moment withdrawal pause was precisely what it was described as: a suspension of a promotional liquidity programme, not proof that the underlying funds had been in hassle.
And the usual fund redemption timeline of 3-10 enterprise days that kicked in later? That’s really the norm for the sort of funding product.
Most individuals simply hadn’t learn the T&Cs carefully sufficient to know that on the spot withdrawals had been by no means a assured function – they had been merely a perk provided by Chocolate Finance.
Sadly, this can be a perk that we will not get again after MAS mentioned so, in mild of what occurred.
“Immediate withdrawals are unlikely to be potential once more in Singapore. Nevertheless, we at the moment course of 90% of withdrawal requests inside 30 hours, and we’re working to get it right down to 90% on the identical day quickly.”
– Walter de Oude, founder and CEO of Chocolate Finance
Having survived such an enormous disaster, I feel it’s honest to say that Chocolate Finance has grown even stronger by now.
With over 100,000 clients and $1.1 billion in property beneath administration, Chocolate Finance has not solely delivered on its promise to present us returns increased than fastened deposits and with none lock-ins, however they’ve additionally launched newer choices inside their ecosystem.
Suppose a Visa debit card – one which I’ve been utilizing to earn Max miles on all of my public transport fares and for any purchases under S$5 (as a result of my banks solely award me miles in S$5 spending blocks).
There’s additionally a USD account, which now permits direct deposit vs. conversion by way of your SGD Chocolate Finance account. This made it engaging for me to switch my USD funds over, since they had been simply sitting in my multi-currency checking account as emergency funds incomes minimal curiosity anyway.
And earlier this 12 months, they even expanded to Hong Kong!
After all, when it comes to their charges, these have dropped since 2023 – and that’s not shocking should you’ve been being attentive to the broader rate of interest surroundings.
Once I wrote my earlier overview, Chocolate Finance was providing 4.2% p.a. in your first S$20,000. In the present day, their charges appear like this:
| SGD Account | USD Account | |
| First S$20k | 2% p.a. | 4.1% p.a. |
| Subsequent S$30k | 1.8% p.a. | 3.8% p.a. |
| Above S$50k | As much as 1.8% p.a. | As much as 3.8% p.a. |
Now, earlier than you roll your eyes on the SGD charges, you’ll want to recollect what occurred to the broader rate of interest surroundings throughout this similar interval:
– Banks have been slashing their rates of interest on financial savings accounts.
– Fastened deposit charges at native banks have slipped to round 1.6% p.a.
– The newest Singapore Financial savings Bonds challenge is providing a first-year yield of simply 1.35%.
– MAS T-bill yields have steadily declined up to now few years.
In different phrases, charges have come down throughout the board as a result of that’s basically the place the market has gone.
Chocolate Finance has at all times positioned itself to supply round 50 foundation factors above the very best out there 3-month fastened deposit charges, and that’s precisely what they’re nonetheless doing.
So sure, 2% p.a. on SGD is decrease than it was. However in comparison with what else is on the market proper now to your spare money with no lock-ins? By that measure, it’s nonetheless aggressive.
I had the pleasure of attending a media briefing hosted by Chocolate Finance to speak about their Hong Kong launch and upcoming modifications, and realized that they hope to launch a brand new funding product later in 2026:
“Many traders need two issues from their cash: progress and earnings. That’s why we’re constructing a easy, set-and-forget funding product designed to ship long-term returns alongside month-to-month dividend earnings.”
– Benjamin Tan, Chief Funding Officer
They’ve but to launch additional details about this for the time being, so I’ll replace when data turns into publicly out there.
“Chocolate isn’t a financial institution. We compete with banks. Our job is to focus on returns in extra of financial institution fastened deposits in order that we make cash happier, and folks’s lives richer. And we’re doing a fantastic job at that.
Subsequent, we plan to compete with insurance coverage firms as a result of I feel ILPs suck and they’re a horrible long run financial savings answer. I ought to know!”
– Walter de Oude, March 2026
Not like the banks, which generate returns by investing buyer deposits primarily in mortgages and credit score, Chocolate Finance is a managed account that primarily invests in short-duration fixed-income funds and cash market funds, giving them larger flexibility to make your cash work onerous for you.
At this second in 2026, the portfolio is at the moment made up of:
- Dimensional Brief-Time period Funding Grade Fastened Revenue SGD Fund (DSF)
- UOBAM United SGD Fund (USF)
- Fullerton Brief Time period rate of interest SGD Fund (FST)
- LionGlobal Brief Period Bond SGD Fund (LGF)
- Amova Brief Time period Bond Fund (NST)
In comparison with 2024, you may see how the portfolio has advanced so as to add extra funds and unfold out the liquidity threat whereas balancing returns.
And for individuals who want to geek out over the fund paperwork earlier than you make investments (like I sometimes do), you will discover them right here.
As for DIY traders who could be tempted to purchase the identical funds straight your self as an alternative, the easy reply is that we will’t.
- That’s as a result of Chocolate Finance invests in institutional share courses of the underlying funds i.e. the cheaper variations that aren’t out there to common retail traders. In different phrases, a DIY portfolio replicating the identical funds (offered you efficiently set it up) would already be paying increased charges for a similar funds from the beginning.
- As well as, Chocolate Finance solely earns its efficiency charges after they beat the acknowledged return, whereas most DIY platforms cost charges upfront upon your transaction (or recurring portfolio charges yearly) no matter efficiency.
Given the funds and the extent of returns being focused, I don’t view the hassle as value my whereas to DIY – therefore I’m comfortable to go away my mid-term money in Chocolate Finance to be managed for me as an alternative.
Why the Prime-Up Programme units it aside
What some individuals initially thought can be a short-lived promotional stint has continued to be prolonged, 12 months after 12 months.
The Prime-Up Programme is critical, as a result of it demonstrates Chocolate Finance’s dedication that if the underlying portfolio doesn’t hit the acknowledged charges, they’ll make up the distinction out of their very own pocket.
Over the previous few years, the Prime-Up Programme hasn’t stopped at the same time as Chocolate Finance grew, and that is at the moment nonetheless in place till 30 June 2026, or till whole property beneath administration hit S$1.5 billion – whichever comes first.
This implies you may take into account the two% p.a. SGD and 4.1% p.a. USD charges in your first S$20,000 to be the returns promised by Chocolate Finance – for now.
And in the event that they fail to ship? Properly, that’s when you may resolve whether or not you want to pull out your money and transfer it to the place you may confidently get increased returns.
The USD account is the place the true motion is.
That is the half of the present providing that I discover most compelling for 2026. Whereas SGD charges have dropped as Singapore’s charge surroundings cools, USD charges are nonetheless meaningfully increased – 4.1% p.a. in your first US$20,000 and three.8% p.a. on the subsequent US$30,000.
So when you’ve got USD financial savings, or should you’re comfy holding a few of your money in USD (and perceive the foreign exchange threat that comes with that), the USD account offers you these returns on as much as US$50,000.
Mixed with SGD returns in your first S$50,000, you’re taking a look at a complete of roughly S$117,000+ that’s being supported by Chocolate Finance for top-ups!
One factor value noting: the USD has been weaker towards the SGD currently, partly on account of tariff uncertainty and recession fears within the US. That truly makes proper now an attention-grabbing time to contemplate changing SGD to USD on the present cheaper charge and locking within the 4.1% p.a. – if the USD strengthens once more, you’d profit on each the curiosity and the change charge.
That mentioned, foreign exchange is foreign exchange, and this isn’t one thing I’d advocate with out considering it by means of rigorously primarily based by yourself monetary scenario.
Right here’s my sincere opinion.
The SGD charges immediately are much less thrilling than they had been in 2023 or 2024 – that’s simply the fact of the place rates of interest are proper now. If you happen to missed out since you had been too sceptical earlier than, that’s on you. In the present day, should you’re purely chasing yield, you’d want to just accept that this surroundings is more durable for money savers throughout the board.
However right here’s what hasn’t modified:
- Chocolate Finance nonetheless beats most SGD money options for a no-lock-in, daily-returns product.
- Your cash continues to be held in segregated custody with established establishments.
- The administration group has been by means of a really public stress take a look at and the cash got here again to everybody who needed it. (Paradoxically, administration confirmed that fairly a quantity who panicked and withdrew their funds throughout the saga later put it again!)
- MAS stepped in to substantiate the construction held.
- Chocolate Finance nonetheless has their license, and simply gained regulatory approvals to supply the identical in Hong Kong (license no. BSF252 by the Securities and Futures Fee of HK, should you had been questioning).
For me, the March 2025 episode really bolstered fairly than weakened my view of Chocolate Finance, as a result of when the mud settled, the construction did precisely what it was alleged to do.
The underlying funds had been superb.
Prospects acquired their a reimbursement.
MAS confirmed the ringfencing labored.
Most newer monetary start-ups haven’t even been by means of such a stress take a look at. So when one has been battle-tested, it deserves benefit over the remainder.
What I might say is that this: deal with it for what it’s.
Chocolate Finance isn’t a financial institution financial savings account.
It’s a managed money funding account, the place your funds get invested into short-term fastened earnings funds for increased returns.
When you’re not getting SDIC insurance coverage as a result of this isn’t a checking account, your funds with Chocolate Finance are held individually in custody i.e. HSBC, State Road, BNP Paribas, and Citibank.
This makes it acceptable for spare money that you simply gained’t want immediately at any second. Don’t use it to your emergency fund should you may want S$30,000 in a single day with completely zero discover.
However as a spot to park your non-emergency money and earn greater than your financial savings account?
That also is sensible to me.
As at all times, do your personal due diligence earlier than making any monetary selections. If you happen to discovered this convenient, you may join utilizing my referral hyperlink right here.
Disclosure: It is a overview and NOT a advice on whether or not to speculate your funds in Chocolate Finance. All opinions are my very own. This put up is written in collaboration with Chocolate Finance to make sure correct illustration of its choices. For brand spanking new readers to this weblog, I'm not a licensed monetary advisor – should you want personalised recommendation, please search out your personal MAS-licensed advisors.
Disclaimers: Chocolate Finance is a model of Chocfin Pte Ltd and is regulated by the Financial Authority of Singapore. The views and opinions expressed on this put up are solely these of the unique authors and contributors as of the date of this put up and are topic to alter primarily based on market and different circumstances. That is for data solely and doesn't represent a proposal or solicitation to purchase or promote any of the investments talked about. Neither Chocfin Pte. Ltd. (“Chocfin”) nor any officer or worker of Chocfin accepts any legal responsibility in anyway for any loss arising from any use of this put up or its contents.Please observe that Chocfin doesn't assure the accuracy, relevance, timeliness, or completeness of the non Chocolate Finance data offered on this put up. The inclusion of any hyperlinks doesn't essentially suggest a advice or endorse the views expressed inside them. Chocolate’s returns are at the moment supported by a promotional 'Prime-Up Programme', legitimate throughout the Qualifying Interval and topic to phrases and circumstances. Previous efficiency isn't indicative of future outcomes. All investments contain threat, together with the chance of shedding all the invested quantity and will not be appropriate for everybody. This commercial has not been reviewed by the Financial Authority of Singapore.
