What is a CD and a MMAs?

Question

Please provide examples.

Answer 1

A CD is a certificate of deposit, you put ion money and can't get it out for a time without paying a penalty they pay higher interest than a standard savings account. FDIC insured up to $100,000 if at bank (or $250,000 if in an IRA account)

$10,000 CD for 2 years paying 3.6%

MM Money market account, you can withdraw your money at any time without penalty. FDIC insured up to $100,000 if at bank (or $250,000 if in an IRA account)  Pays higher interest than standard savings but lower than CDs

$10,000 in money market paying 2.35%

Regular Savings $10,000 paying .6% to 1.3%