When it comes to making money online, most people are understandably skeptical. There are so many potential scams out there looking to part people from their hard-earned cash. So when something like RinggitPlus comes along promising high returns with little risk, it understandably raises red flags.
In this in-depth review, I’ll share everything I’ve learned about RinggitPlus from my own research as well as feedback from customers to help you decide if it’s a scam or a legit opportunity. By the end, you’ll understand the full story and be able to make an informed decision about whether RinggitPlus is right for you.
Let’s get started!
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What is RinggitPlus?
RinggitPlus is an Islamic digital banking platform based in Malaysia that allows users to earn interest on deposits in a Shariah-compliant way. Some key things to know:
Founded in 2017, it’s licensed and regulated by the Central Bank of Malaysia. Offers savings accounts, fixed deposits, and personal financing options.
RinggintPlus Uses a “Profit-Sharing Model” where profits from financing activities are shared with depositors according to fixed ratios instead of paying interest, to comply with Islamic law.
It also promotes itself as a halal alternative to conventional banks that pay interest, which is forbidden or “riba” in Islam. Minimum deposit to open an account is RM100 (~$25 USD). No maximum deposit amounts.
So in summary, RinggitPlus presents itself as a licensed, Shariah-compliant digital bank for Muslims and others seeking halal investing and banking options. On the surface, it looks legit. But is it really too good to be true? Let’s dig deeper.
Is the Return Too Good to Be True?
One of the biggest red flags with any investment opportunity is an unusually high return that seems unsustainable. With RinggitPlus, depositors can earn daily returns of up to 0.8% annually on savings accounts.
At first glance, 0.8% doesn’t sound incredible. However, when you do the math on compound annual growth over time, it adds up significantly:
- After 1 year on RM10,000 at 0.8% daily profit-sharing, the balance would grow to RM10,800.
- In 5 years at the same rate, RM10,000 would become RM15,968.36.
- In 10 years, RM10,000 would have a projected balance of RM25,576.31.
Compare those returns to a traditional savings account paying maybe 1-2% annual interest, and the RinggitPlus rates start to look very attractive. Plus, there is no fixed deposit period – you can withdraw your money anytime without penalties.
So is 0.8% daily really sustainable? To evaluate this, let’s look at how RinggitPlus generates returns.
How RinggitPlus Makes Money
RinggitPlus doesn’t reveal many specifics, but based on publicly available information, here’s what we know about their business model:
They use depositor funds to provide financing for small businesses, home loans, auto loans, and other Shariah-compliant financing in Malaysia.
Profits from these financing activities are shared between depositors and RinggitPlus according to fixed profit-sharing ratios, rather than interest payments.
As the business grows, they gain economies of scale which allows them to offer more competitive financing rates to borrowers while still generating profits to share. Management claims careful underwriting and risk management helps control defaults and losses.
So in theory, as long as RinggitPlus experiences continued business growth and prudent financing/risk practices, it’s plausible their profit-sharing model could sustain daily returns around 0.8% over time, perhaps with some variation depending on market conditions.
It’s no “get rich quick” scheme, but a legitimate business model – as long as it’s implemented properly. The key question is whether RinggitPlus can execute long-term.
Is RinggitPlus Legitimate and Licensed?
To be a legitimate Shariah-compliant digital bank, RinggitPlus would need the proper licensing and oversight. Thankfully, public records confirm they do indeed have all required approvals:
RinggitPlus is Licensed by Bank Negara Malaysia (Malaysia’s Central Bank) as a Restricted Money Broker under the Money Services Business Act 2011.
Also they hold a Capital Markets Services License from the Securities Commission Malaysia to conduct financial planning. Governed by guidelines from the Shariah Advisory Council of Bank Negara Malaysia to ensure full Shariah-compliance.
This licensing provides assurance that RinggitPlus has undergone thorough due diligence and continues to abide by all regulatory requirements for anti-money laundering, consumer protection laws, capital reserves, and prudent business practices.
So when it comes to legitimacy and legal status, RinggitPlus checks all the right boxes. They are most certainly not operating illegally or without proper oversight as some scam operations might.
What Do Customers Say?
No review would be complete without looking at direct customer feedback. Here’s what I found in my research:
Positive reviews:
- Easy sign up process and intuitive mobile app interface.
- Money transfers between accounts happen quickly.
- Customer support responds promptly through live chat.
- Many users report earning daily returns consistently as advertised over 6-12 months.
Negative reviews:
- A small number of complaints about delayed withdrawals, though most were eventually resolved.
- Interface can be slow or buggy sometimes.
- Some users express doubt about sustainability of returns long-term.
Overall, the vast majority of reviews are positive about the customer experience. While not perfect, it seems most users receive returns as promised without major issues – at least within the first year or so of using the platform. Of course, the real test will be maintaining service quality and returns over 5-10+ years of operation.
My Personal Take on RinggitPlus
After reviewing all available information objectively, here are my impartial thoughts on whether RinggitPlus seems legitimate or like a scam:
Pros: Licensed and regulated digital bank with legitimate business model; Many real customers reporting returns as advertised short-term; and has a Growth potential could allow sustained returns long-term
Cons: Still relatively new so long-term track record unknown; Returns may vary or become unsustainable in different markets; and Some user complaints indicate occasional service issues.
My conclusion is that RinggitPlus does appear to be a real, licensed Islamic finance platform – not an outright scam. However, there are risks given its short operating history. Returns are not guaranteed and could fluctuate or cease to be profitable at some point.
That said, if managed well, 0.8% daily earnings may very well prove sustainable as the business scales. And for conservative Muslim investors seeking halal options, it represents one of very few available choices in the market currently.
Overall, RinggitPlus seems legit but comes with business/market risks like any new startup. Income should not be counted on too heavily. Diversification across banks/investments and emergency funds are wise precautions.
Should You Use RinggitPlus?
If you’re a Muslim investor looking for Shariah-compliant options and comfortable with some risk, then RinggitPlus could potentially be a good fit under the right conditions:
Only deposit amounts you can afford to lose without major impact. Understand returns may fluctuate or stop depending on RinggitPlus’s success. Have other savings and income sources as a backstop. Monitor account regularly for any service issues and withdraw if needed.
However, for most conservative savers, a more diversified approach would be lower risk: Split funds across multiple established halal banks/platforms. Consider fixed-deposits that guarantee principal for portions. Maintain emergency cash reserves in non-profit sharing accounts.
Ultimately the best decision depends on your personal financial goals, timeline, and risk tolerance. Just be aware that while promising, RinggitPlus outcomes are not guaranteed long-term. Prudent diversification across proven options provides downside protection.
Conclusion – Should You Use RinggitPlus?
After extensive review and research into RinggitPlus, here are the key takeaways in summary:
RinggitPlus appears to be a real, licensed digital Islamic bank – not an outright scam. Their profit-sharing business model could plausibly sustain 0.8% daily returns if business grows as planned.
However, there are risks given their short track record and dependence on future success. Returns are not guaranteed.
Most customer reviews have been positive about stated returns and service – so far. For conservative investors, diversification across multiple proven halal banks is lower risk.
So in my view, while not a scam, RinggitPlus does carry some business and sustainability risks typical of a new startup. Their product could work well long-term, but there are no guarantees.
If you understand the risks and only allocate what you can afford to potentially lose, then RinggitPlus may be a worthwhile halal investment option to consider alongside a diversified portfolio elsewhere. But it’s not the only choice, so weigh all factors carefully for your situation.
With any promising new platform, only time will fully reveal how sustainable and trustworthy it proves in the long haul. For now, RinggitPlus appears legit on the surface – as long as you manage risks intelligently.
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