Chocolate Finance Hits 150,000 Users as Singaporeans Shift Away From Low-Yield Savings

A New Home for Spare Cash

Singapore's retail savers are voting with their wallets. Chocolate Finance, a licensed cash management platform, has crossed 150,000 users and S$1.5 billion in assets under management since its 2024 launch. The growth comes as fixed deposit rates have slid from their 2023 peaks to around 1.5% per annum for 12-month tenures, while many traditional savings accounts continue to deliver minimal base interest.

Founder Walter de Oude, who previously launched Singlife in 2014, identified the gap during his tenure there. Singlife's insurance savings product, the Singlife Account, pulled in 60,000 customers within its first year by offering rates above typical bank accounts. That product confirmed the demand: Singaporeans wanted better returns on liquid cash, not more complex investment structures.

When Singlife merged with Aviva, the savings product was deprioritised due to thin margins and capital requirements, according to de Oude. He left to build Chocolate Finance as a dedicated solution for the same problem.

How the Model Works

Chocolate Finance operates as a licensed fund manager, not a deposit-taking bank. Customer funds flow into a professionally managed portfolio of short-duration fixed-income securities and money market funds. The structure aims to generate competitive returns while maintaining daily liquidity with no withdrawal penalties or lock-in periods.

At present, the platform offers 2% per annum on the first S$20,000, 1.8% on the next S$80,000, and up to 1.8% on balances above S$100,000. A US dollar account delivers 4.1% on the first US$20,000 and 3.8% on amounts up to US$100,000. Customer funds sit in segregated accounts, separated from the company's operating capital.

Because Chocolate Finance invests customer deposits rather than holding them as insured bank deposits, returns and principal are subject to market movements. Deposits do not fall under Singapore Deposit Insurance Corporation coverage. To support advertised rates, the company runs a Top Up Programme that covers any shortfall in portfolio performance on the first S$100,000 and US$100,000 through December 31, 2026, or until assets reach S$2 billion.

Beyond the Core Account

The platform has added features that appeal to frequent travellers and small business owners. Its Visa debit card carries zero foreign exchange fees and integrates with HeyMax, allowing users to convert cash returns into airline miles. The card has gained traction among miles collectors who prefer to avoid spending requirements tied to traditional credit card rewards.

Chocolate Finance also launched a business account this year, offering eligible companies 1.5% per annum on their first S$300,000. The move extends the same value proposition to corporate cash management, where treasury teams face similar trade-offs between liquidity and yield.

The company has no account fees and no minimum deposit, lowering the barrier for retail customers testing alternatives to bank savings. Sign-up is handled digitally, reflecting the platform's target demographic of digitally comfortable savers.

The Broader Context

Fixed deposit rates in Singapore peaked in 2023 when central banks were still tightening. As monetary policy has stabilised, 12-month rates from major banks have retreated. Many consumers still park substantial household cash in basic savings accounts that yield negligible interest. A S$50,000 balance in a standard account earning 0.05% generates roughly S$25 annually. The same amount in a cash management account offering around 2% would produce closer to S$1,000 in a year, with no lock-in.

Chocolate Finance's user base suggests appetite for these alternatives is growing. The platform has scaled faster than Singlife's original savings product, which took a year to reach 60,000 users. Chocolate Finance doubled that figure and added significant assets in roughly the same timeframe.

De Oude has indicated that the cash account is the foundation, not the end state. The company plans to roll out additional products tailored to different savings goals and time horizons, while maintaining simplicity as a core design principle.

What Comes Next

Chocolate Finance's traction reflects a shift in how Singaporeans think about short-term savings. The traditional playbook of salary-crediting accounts and fixed deposits made sense when interest rates were higher and digital alternatives were scarce. Today's environment offers more choice, and platforms like Chocolate Finance are capturing the segment that prioritises both yield and flexibility.

Whether the model can sustain its growth as it moves past S$2 billion in assets and the Top Up Programme winds down will depend on portfolio performance and the competitive landscape. For now, the platform has carved out a clear position in Singapore's evolving savings market.