Bankable Funds

  

Categories: Banking, Tech

Bankable funds are just that: funds that banks accept as a form of payment. Cash, checks, cashier's checks, money orders, Bitcoin. Not the huge zucchini you grew in your garden last week.

Related or Semi-related Video

Finance: What is a Money Market Fund?80 Views

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finance a la shmoop. what is a money market fund? isn't it a strange concept

00:08

to think about going to a market to buy money? [man walks through grocery store]

00:12

well yeah it's strange but the practice exists and it's a huge multi trillion

00:17

dollar market today. the key word here is money and not investment. why such a big

00:23

diff? well because the notion of investing implies duration. that is when

00:28

you invest in a nice fixer-upper home or a tractor distribution company or shares

00:34

in a fat dividend-paying bank you're investing for presumably a long time [people stand in line]

00:40

like years maybe decades maybe centuries if you can find the right miracle pill.

00:44

but here we're talking about money like the stuff you can buy candy with. so it's

00:49

short term not long and a money market fund basically comprises many series of

00:55

pretty safe bonds that are all coming due in the next 30 to 90 days. sometimes [pie chart]

01:00

longer than that sometimes shorter but generally in the very near future. so why

01:04

would you care about a money market fund? well because it pays you slightly more

01:09

interest on your money than say a bank checking account. and lots of people in

01:13

corporations need cash just sitting around to pay their bills, so there are

01:18

tons of money market funds out there available and that's the gist of a money

01:21

market fund. we're sure you'll have plenty of experience with them by the

01:25

time you hit your sixth hundredth birthday day [people cheer and hold birthday cake]

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