What is a Money Market Fund Account?

A money market fund account  is a short term  low- risk savings account that  earns you interest..

 

Different people pool their funds together (like a chama) and he funds are used to make other financial investments that are less risky like lending money to the government, banks and corporations. When profits are made, they are shared with you in form of interest

Money in this account can be withdrawn any time without incurring penalties.

 

 

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How much will you make if you invest Kes 60,000 in a money market fund?

• Assuming the interest rate is 11.5%
• You deposit the funds  once in January for 12 months
• You do  not touch the money
• You will have between Kes 67,275- Kes 67,4000
• Interest is KES  7,275 -7 400

Here is the breakdown

 

	No.	Date	Payment	Principal + Payments		Interest	Cumulative Interest	Balance
1st Jan	0.00	42370.00		60000.00				60000.00
31st Jan	1.00	42401.00	0.00	60000.00		588.81	588.81	60588.81
Feb	2.00	42430.00	0.00	60000.00		556.05	1144.85	61144.85
Mar	3.00	42461.00	0.00	60000.00		600.04	1744.89	61744.89
Apr	4.00	42491.00	0.00	60000.00		586.29	2331.18	62331.18
May	5.00	42522.00	0.00	60000.00		611.68	2942.87	62942.87
Jun	6.00	42552.00	0.00	60000.00		597.67	3540.53	63540.53
Jul	7.00	42583.00	0.00	60000.00		623.55	4164.08	64164.08
Aug	8.00	42614.00	0.00	60000.00		629.67	4793.75	64793.75
Sep	9.00	42644.00	0.00	60000.00		615.24	5408.99	65408.99
Oct	10.00	42675.00	0.00	60000.00		641.89	6050.88	66050.88
Nov	11.00	42705.00	0.00	60000.00		627.18	6678.05	66678.05
Dec	12.00	42736.00	0.00	60000.00		654.34	7332.39	67332.39

 

 

Use this Money Market Fund  Calculator to estimate the value  of your investment.

The calculations above have not yet been adjusted for 15% withholding tax and management fee.