Cash vs. Fund — What's the Difference?
By Tayyaba Rehman — Updated on September 19, 2023
Cash is immediate currency or liquid assets; Fund is a pool of money set aside for a specific purpose.
Difference Between Cash and Fund
Table of Contents
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Key Differences
Cash refers to physical money like coins and bills, whereas a Fund pertains to a sum of money saved or allocated for a particular purpose. Both can serve as a means to facilitate transactions, but the former is immediately accessible while the latter might be tied up in investments or accounts.
Cash is often used for day-to-day transactions. It's what you might have in your wallet or purse. On the other hand, a Fund might be something you contribute to, like a retirement fund, which accumulates over time and serves a long-term objective.
Cash is considered a liquid asset, meaning it can be quickly and easily converted into other assets or used to buy goods and services. A Fund, depending on its type, might be less liquid if its assets are tied up in investments that can't be quickly sold without a loss.
Cash is universal and doesn't typically earn interest unless deposited into an interest-bearing account. A Fund, especially investment funds, is designed to grow over time, potentially earning interest or dividends, but also carries risks.
Cash transactions are immediate and leave no room for ambiguity. When you pay with cash, the payment is finalized. With Funds, there might be conditions attached, such as withdrawal penalties or time restrictions, which can affect its immediate accessibility.
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Comparison Chart
Nature
Physical currency or liquid assets.
Pool of money allocated for a specific purpose.
Liquidity
Highly liquid; easily accessible.
Can vary; might be tied up in investments or accounts.
Purpose
Used for immediate transactions.
Set aside for specific, often long-term, objectives.
Growth
Doesn't grow unless in an interest-bearing account.
Typically aims to grow over time, possibly through investments.
Restrictions
No restrictions unless stipulated by law (e.g., large amounts).
Might have withdrawal penalties, time constraints, etc.
Compare with Definitions
Cash
Coins and bills used for transactions.
I paid in cash for my coffee.
Fund
A sum of money saved for a specific purpose.
He set up a fund for his child's education.
Cash
Refers to payment without borrowing.
We operate on a cash basis.
Fund
Money pooled from various sources to be invested.
She invested in a mutual fund.
Cash
Payment done instantly without credit.
The vendor prefers cash payment.
Fund
Monetary resources allocated for a cause.
The government has a fund for disaster relief.
Cash
Something that can be accessed without delay.
Keep some cash on hand for emergencies.
Fund
A sum of money saved or made available for a particular purpose
He had set up a fund to coordinate economic investment
Cash
In economics, cash ( (listen) kash, or kaysh in AuE) is money in the physical form of currency, such as banknotes and coins. In bookkeeping and financial accounting, cash is current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately (as in the case of money market accounts).
Fund
Provide with money for a particular purpose
The World Bank refused to fund the project
Cash
Money in the form of bills or coins; currency.
Fund
A source of supply; a stock
A fund of goodwill.
Cash
Liquid assets including bank deposits and marketable securities.
Fund
A sum of money or other resources set aside for a specific purpose
A pension fund.
Cash
Money paid in currency or by check
Paid in cash.
Fund
Funds Available money; ready cash
Short on funds.
Cash
Any of various Asian coins of small denomination, especially a copper and lead coin with a square hole in its center.
Fund
An organization established to administer and manage a sum of money.
Cash
To exchange for or convert into ready money
Cash a check.
Cash in one's gambling chips.
Fund
Funds The stock of the British permanent national debt, considered as public securities. Used with the.
Cash
(uncountable) Money in the form of notes/bills and coins, as opposed to cheques/checks or electronic transactions.
After you bounced those checks last time, they want to be paid in cash.
Fund
To provide funds for
Funded the space program.
A fully funded pension.
Cash
Liquid assets, money that can be traded quickly, as distinct from assets that are invested and cannot be easily exchanged.
Fund
To convert (short-term government debt) into a long-term or floating debt with fixed interest payments.
Cash
Money.
Fund
A sum or source of money.
The fund of a bank, commercial house, manufacturing corporation, etc.
A fund for the maintenance of underprivileged students
Cash
Cash register, or the counter in a business where the cash register is located.
Let me just bring these to the cash for you.
Fund
An organization managing such money.
Cash
An instance of winning a cash prize.
Fund
A money-management operation, such as a mutual fund.
Several major funds were declared insolvent recently.
Cash
A place where money is kept, or where it is deposited and paid out; a money box.
Fund
A large supply of something to be drawn upon.
He drew on his immense fund of knowledge.
Cash
Any of several low-denomination coins of India, China, or Vietnam, especially the Chinese copper coin.
Fund
(transitive) To pay or provide money for.
He used his inheritance to fund his gambling addiction.
Cash
(transitive) To exchange (a check/cheque) for money in the form of notes/bills.
Fund
(transitive) To place (money) in a fund.
Cash
(poker slang) To obtain a payout from a tournament.
Fund
(transitive) To form a debt into a stock charged with interest.
Cash
To disband. To do away with, kill
Fund
An aggregation or deposit of resources from which supplies are or may be drawn for carrying on any work, or for maintaining existence.
Cash
(slang) Great; excellent; cool.
Fund
A stock or capital; a sum of money appropriated as the foundation of some commercial or other operation undertaken with a view to profit; that reserve by means of which expenses and credit are supported; as, the fund of a bank, commercial house, manufacturing corporation, etc.
Cash
A place where money is kept, or where it is deposited and paid out; a money box.
This bank is properly a general cash, where every man lodges his money.
£20,000 are known to be in her cash.
Fund
The stock of a national debt; public securities; evidences (stocks or bonds) of money lent to government, for which interest is paid at prescribed intervals; - called also public funds.
Cash
Ready money; especially, coin or specie; but also applied to bank notes, drafts, bonds, or any paper easily convertible into money
Fund
An invested sum, whose income is devoted to a specific object; as, the fund of an ecclesiastical society; a fund for the maintenance of lectures or poor students; also, money systematically collected to meet the expenses of some permanent object.
Cash
To pay, or to receive, cash for; to exchange for money; as, cash a note or an order.
Fund
A store laid up, from which one may draw at pleasure; a supply; a full provision of resources; as, a fund of wisdom or good sense.
An inexhaustible fund of stories.
Cash
To disband.
Fund
To provide and appropriate a fund or permanent revenue for the payment of the interest of; to make permanent provision of resources (as by a pledge of revenue from customs) for discharging the interest of or principal of; as, to fund government notes.
Cash
A Chinese coin.
Fund
To place in a fund, as money.
Cash
Money in the form of bills or coins
Fund
To put into the form of bonds or stocks bearing regular interest; as, to fund the floating debt.
Cash
Prompt payment for goods or services in currency or by check
Fund
A reserve of money set aside for some purpose
Cash
Exchange for cash;
I cashed the check as soon as it arrived in the mail
Fund
A supply of something available for future use;
He brought back a large store of Cuban cigars
Cash
Assets that can be quickly turned into cash.
She has a lot of cash in her savings account.
Fund
A financial institution that sells shares to individuals and invests in securities issued by other companies
Fund
Convert (short-term floating debt) into long-term debt that bears fixed interest and is represented by bonds
Fund
Place or store up in a fund for accumulation
Fund
Provide a fund for the redemption of principal or payment of interest
Fund
Invest money in government securities
Fund
Accumulate a fund for the discharge of a recurrent liability;
Fund a medical care plan
Fund
Furnish money for;
The government funds basic research in many areas
Fund
An organization managing a sum of money for a purpose.
The scholarship is provided by a charitable fund.
Fund
A source of a necessary thing.
The library is a fund of information.
Common Curiosities
How is a fund different from cash?
A fund is a pool of money set aside for a specific purpose, while cash is immediate currency.
Can cash be considered a fund?
While cash can be part of a fund, not all cash is necessarily set aside for a specific purpose like a fund.
Can cash earn interest?
Cash itself doesn't earn interest, but when deposited into interest-bearing accounts, it can.
What's the main advantage of having cash?
Cash offers immediate liquidity, meaning it's readily accessible for transactions.
What's a mutual fund?
A mutual fund pools money from multiple investors to buy securities like stocks or bonds.
What is cash in simple terms?
Cash is the physical money, like coins and bills.
Are there risks associated with funds?
Yes, especially with investment funds. The value can go up or down based on market conditions.
How do organizations use funds?
Organizations might use funds for operations, projects, or to further their mission or goals.
Do funds always consist of cash?
No, funds can consist of investments, stocks, bonds, or other assets, not just cash.
Is digital money considered cash?
Digital money represents cash but isn't physical currency. It's an electronic version of cash.
Why would someone set up a fund?
People set up funds for specific goals, like retirement, education, or investment growth.
Is "cash on delivery" a type of fund?
No, "cash on delivery" refers to paying in cash when a product is delivered.
Can the term "fund" be used outside of finance?
Yes, "fund" can also refer to a store or supply of something, like knowledge or information.
Why might someone prefer funds over keeping cash?
Funds, especially investment funds, have the potential to grow over time, while cash might not.
Is "cashback" the same as getting cash?
"Cashback" often refers to a rebate or reward, which might be in the form of actual cash or a credit.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
