At Telco Credit Union, we know how important it is to save money. One such way is to invest in a money market fund. Telco serves the Eastern North Carolina area, including Greenville, Tarboro, and Rocky Mount. You can trust Telco with all your financial needs, whether you’re looking to open a checking or savings account, take out a loan, finance your mortgage, or become a Telco member/owner.
So, what exactly are money market funds? This type of mutual fund is an option for investors to buy a pool of securities that provides higher returns than normal bank accounts. There are different types of money market funds. Some invest in government securities, municipal securities, or bank debt and corporate securities. Typically, these types of funds cater to different types of investors. For example, some money market funds are meant for investors in retail, while others are meant for institutional investors. The regulations ruling money market funds are dependent on the type of fund.
One type of money market fund is a prime fund, which mostly invests in taxable short-term corporate and bank debt securities. Another is a government money market fund, which invests 99.5% or more of their total assets in liquid investments like cash and other types of investments. Retail money market funds are another type of mutual fund.
Typically, money market funds invest in things like certificates of deposit (CDs), commercial paper, U. S. Treasuries, Bankers’ Acceptances, and Repurchase agreements. Like other mutual funds, money market funds release shares to their investors, and they must follow the guidelines set by the SEC. All characteristics of a mutual fund also apply to a money market fund, with only one exception (which relates to its net asset value).
At Telco, we offer money market funds as one of our many services. If you invest in this type of mutual fund with us, there is no monthly fee and funds are not tied to maturity restrictions. Your dividends will be compounded quarterly and they begin to accrue on the day you open your account. Another benefit of investing in a money market fund through Telco is that there is no service charge. The requirements for opening this type of account with us include a $2,500 minimum deposit and a $2,500 minimum required in the account at all times. If you have questions about money market funds, or are ready to open an account with Telco, contact us today!