3.3% p.a. Returns: Chocolate Finance is (Finally) Open to New Sign-ups

Update: Chocolate Finance top-up rates have dropped to 3.3% p.a. but the rest of the article should still stand

After a lengthy hiatus of almost 10 months, Chocolate Finance is finally accepting new applications again. Oh, and after a short stint as “Core Managed Account”, it’s back to being called Chocolate Finance, a name I very much prefer.

If you’ve been waiting to get in on Chocolate Finance’s fuss-free 4.2% p.a. returns, you can now come onboard by signing up below, though do note that it is technically an investment so be aware of how it works before putting funds in.

How does Chocolate Finance work?

For those unfamiliar with how Chocolate Finance works, I would say it is a fairly interesting concept. While it is an investment, for the first S$20,000 of a user’s deposit, Chocolate Finance will give 4.2% p.a. 3.3% p.a. returns which are credited daily regardless of how the underlying assets perform.

So if the underlying funds give a return of 3% p.a. or even make losses, Chocolate Finance tops up the difference until the return is 4.2% p.a. 3.3% p.a. If the fund does 5% p.a, Chocolate Finance will take the difference and give users 44.2% p.a. 3.3% p.a. and that is how they make their money.

On the next S$30,000, the top-up programme rate is 3% p.a.

Beyond the first S$50,000, there will be no more top ups and returns will depend on the performance of the underlying fund. This means that for amounts above S$20,000, the returns can also be negative, so do keep your balance under S$20,000 if volatility like this bothers you.

Withdrawals up to S$20,000 within a day is instant and can be done easily through the Chocolate Finance app. Above that, it will take 1 to 5 business days for funds to be credited to your account.

New Rates from Feb 2025

Balance	Current Returns	Returns From 1st February 2025
Up to S$20,000	3.6% p.a. with top-up programme	3.3% p.a. with top-up programme
S$20,000 to S$50,000	3.2% p.a. with top-up programme	3% p.a. with top-up programme
Above S$50,000	Target 3.2% p.a.	Target 3% p.a.

How the bond funds work

Customer monies are currently invested into 3 funds that are mostly short-term investment-grade bond funds. That’s quite a mouthful, but essentially, money is being loaned to relatively big and reputable companies in pretty short durations.

When you loan money to people, the risk level depends on how reliably the borrower can repay the debt, as well as how long the loan is for. Generally, the more trustworthy the borrowers are and the shorter the time frame, the less risky the loan is. In my opinion, the 3 funds that form Chocolate Finance’s portfolio are pretty safe and they are diversified across entities that are unlikely to default.

Even then, fluctuations are to be expected when it comes to bond funds. Imagine if the prevailing rate for loans is 3% p.a. rate and you lent someone money. If interest rates decrease to 2% p.a, the loan you own will now become more attractive, and you can now resell your bond for a profit. Conversely, if interest rates increase to 4% p.a, your 3% p.a. loan no longer looks attractive and you will have to sell it at a lower price. Funds that invest in a whole basket of bonds would naturally see their net asset value go up and down each day.

Trading returns for better peace of mind

Regardless of the situation, as long as you hold your bond to maturity and the person pays you back your capital and interest, you would have captured your original investment’s yield. But in the short term, you can expect the value of your investment to dip every now and then, and this is where Chocolate Finance’s top up would prove useful. Your downside risk is lowered in times when the fund value goes down.

Of course, you are also trading away potential upside when you enter into such an arrangement. If the funds do above 4.2% p.a, Chocolate Finance will keep returns in excess of 4.2% p.a. Effectively, you have traded away higher potential returns for something that is less volatile and this is something I talked about in my recent video:

If Chocolate Finance collapses

It’s important to note that Chocolate Finance is an MAS-regulated entity and while that does not provide any guarantee that the company wouldn’t collapse, it does give some assurance that someone is watching over any funny business. To that end, your assets are held separately from Chocolate Finance, so in the event Chocolate Finance goes bust, your assets with them are still safe.

As this is not a bank deposit, note that there is no SDIC coverage. Do also take note that this article and my video are not personal finance advice and you should sign up only if you are comfortable with the product.

Stay subscribed for more updates and deals

Personally, a family member and I have S$20,000 each in this since last year. It’s a fuss-free way to set aside some spare cash, and we are comfortable with the arrangement. The underlying assets are – in my opinion – not YOLO high returns type, and the top-up arrangement from Chocolate Finance gives us stable returns.

Do stay subscribed for more updates on related products and promos!

Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.

He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.

Subscribe to the channel for free updates!

Disclaimer: I may receive an affiliate/referral fee when you sign up for services/products on this site, and such fees keep the site running. I would only recommend services/products I would personally use or recommend to my own friends and family, but I do not provide any warranty or guarantee for the quality of these services/products. Thank you for supporting my site!

Please exercise due diligence when signing up for any service/product as I will not be liable for any personal loss, financial or otherwise. Content published here are my sole views and personal opinion, and none of the information here constitutes personal financial advice nor represents the views of my employer(s).