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Britam Money Market Fund Review 2024

Money market fund is an investment where institutions trade safe short-term debt securities, cash and cash equivalents

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Founded in 1965, Britam is an insurance and investment holding company that offers diversified financial services, including money market funds among insurance, asset management, and property development in Kenya and across Africa.

The markets have been rocky for borrowers ever since the Central Bank of Kenya (CBK) raised its base lending rates multiple times in the past two years to squelch inflation by slowing the economy.

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Mortgages and personal loans have become more expensive. Customers also pay more as interest charges on credit cards and the cost of financing a car have risen because, right now, as the Central Bank Rate (CBR) stands at 13%, most banks and financial providers have pushed their interest rates on loans to above 14.63%.

With interest rates on loans higher than they’ve been in some time, it is painful for borrowers, but it’s been a glorious time for savers and investors, especially those stashing their cash in certificates of deposit (CDs), a type of savings account with a fixed interest rate on money that remain untouched over a specified period, and in money market accounts that pay fabulous yields like the Britam Money Market Fund.

Britam Money Market Fund

First, a money market fund is an investment fund where institutions trade safe short-term debt securities, cash, and cash equivalents that are easy to buy and sell and have a very high credit quality, like government bonds, hence paying enticing interest rates than traditional savings accounts.

Britam Money Market Fund is one of them, and it pays one of the most attractive money market account rates out there with awesome checking account features, no monthly fees, and no minimum balance requirements.

To open a money market account with Britam, dial *778# on your mobile phone and follow the instructions or download the Britam App on Google Play or Apple Store.

Britam Money Market Account offerings

The Britam Money Market Fund is a great option for those chasing higher returns, but note that it requires a minimum opening deposit of Ksh1,000 to register for the money market account. Also, a minimum top-up of the same amount applies to subsequent investments.

The Fund’s objective is to preserve capital and provide an income over rolling 12-month periods on an impressive 9.50% annual yield rate on all balances, which may vary based on the current economic conditions and other factors.

In the past few years, Britam has been paying well above the average money market account interest rate of 9% in Kenya, and its recent highest-ever effective annual yield was 10.34%, recorded in 2022.

Britam Money Market Fund has zero monthly maintenance fees, and it is free to make withdrawals before the funds reach the maturity period, but investors may have to forfeit accrued interest.

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JUSTUS KIPRONOhttp://www.businesstoday.co.ke
Justus Kiprono is a freelance journalist based in Nairobi, Kenya. He tracks Capital Markets and economic trends, infrastructure reform, government spending, and the financial impacts of state decision-making nationwide. You can reach him: [email protected]
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