Bankable Funds

DEFINITION of 'Bankable Funds'

Forms of payment that are accepted at financial institutions. Retailers and other organizations that directly accept payments from customers typically request that any payments be made in forms that can be redeemed and accepted by the bank.

BREAKING DOWN 'Bankable Funds'

For example, cash and cashier checks are forms of bankable funds; they are readily accepted and deposited at all major banks. On the other hand, other forms of assets such as precious metals and stocks (although they may have considerable value), will generally not be accepted as a form of payment.

RELATED TERMS
  1. Acceptance Market

    Investment market based on short-term credit instruments. An ...
  2. Stop Payment

    A request made to a financial institution to cancel a check or ...
  3. Acceptance

    A contractual agreement on a time draft or sight draft to pay ...
  4. Banker's Acceptance - BA

    A short-term debt instrument issued by a firm that is guaranteed ...
  5. Time Draft

    A type of foreign check that is guaranteed by the issuing bank, ...
  6. Two Name Paper

    A nickname assigned to trade paper. Both Trade Acceptances and ...
Related Articles
  1. Investing Basics

    Banker's Acceptance 101

    A banker's acceptance, a common way of financing international trade activity, provides a relatively safe, short-term vehicle for investors. An acceptance is a negotiable time draft that a bank ...
  2. Retirement

    Money Market: Banker's Acceptance

    A bankers' acceptance (BA) is a short-term credit investment created by a non-financial firm and guaranteed by a bank to make payment. Acceptances are traded at discounts from face value ...
  3. Personal Finance

    The Banking System: Commercial Banking - What Banks Do

    ByStephen D. Simpson, CFA Accept Deposits / Make LoansAt the most basic level, what banks do is fairly simple. Banks accept deposits from customers, raise capital from investors or lenders, ...
  4. Taxes

    What IRS Form 990 Tells About a Nonprofit

    Want a picture of an organization's activities? This annual form, open to the public, sums up everything from salaries paid to missions accomplished.
  5. Professionals

    Forms 3, 4 and 5

    These forms show the changes in ownership and purchases by the company's directors.
  6. Investing

    How Digital Payments Will Change Commerce in 2016

    The way we transfer and spend money is constantly evolving, and 2016 is poised to expand digital payments like we've never seen before.
  7. Forex Fundamentals

    Top 5 US Cities That Accept Bitcoin

    Discover why bitcoins are a popular form of payment among many consumers, and learn the top five cities in the United States that accept this currency.
  8. Credit & Loans

    What is a Financial Institution?

    A financial institution is in business to, among other things, accept deposits, make loans, exchange currencies, and broker investment securities.
  9. Professionals

    Payments For Market Making

    It is a violation of FINRA rules for any member or associated person to accept any payment or consideration from another party for quoting, making a market or applying to make a market in any ...
  10. Retirement

    What is a Lump-Sum Payment?

    A lump-sum payment is a one-time payment for the total or partial value of an asset.
RELATED FAQS
  1. How do I obtain a banker's acceptance?

    Find out how to obtain a banker's acceptance, why you should treat it like a short-term loan and when you would most likely ... Read Answer >>
  2. How can I look up average banker's acceptance yields?

    Discover what a banker's acceptance note is, how it is commonly used, and where investors can find information on available ... Read Answer >>
  3. Why is marketing important to a company in the utilities sector?

    Find out what a banker's acceptance is, how it works, and why it should be considered a safe and liquid money market instrument. Read Answer >>
  4. What is the Activities of Daily Living (ADL) hierarchy scale?

    Find out how a banker's acceptance is different than a post-dated check, even though both instruments represent a claim against ... Read Answer >>
  5. Why do long-term care insurers require the loss of two Activities of Daily Living ...

    Find out why an importing or exporting merchant might turn to a banker's acceptance to help facilitate an international trade ... Read Answer >>
  6. Excessive trading is:

    A. acceptable if the client is young enough to recover from any losses before retiring.B. acceptable if the firm mandates ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center