What is better for saving money. CD or saving account?

Question

and CD it say if u said 12 months then u cant take ur money before 12 months. BUT what if u said 12 months ... and when 12 months are gons and u didnt take ur money can it still work if u keep them for more than 12 months?

Answer 1

CD's pay more interest than a regular savings account.  At the end of the term, you can just put it in another CD.

Answer 2

Id check www.daveramsey.com.  He is a radio host/financial expert and a best selling author.  He says cds are horrible.  He calls them "Certificate of depression".  There might be some stuff on his site that could help you out.  He is always talking about Roth IRA's

Answer 3

CD pays higher interest rate but you can't touch your money for certain amount of time.

Answer 4

It's definitely better interest to go with a cd. Not being able to take the money out for the term of the cd helps you resist temptation.. After the term, you have to roll it over or shop for a better rate elsewhere, but it stops accumulating interest until you roll it over.  

Answer 5

After the CD term is up, you can roll the money over to a new CD.  It doesn't have to be the same term as the last CD.

But money market rates can be fairly competitive with most CDs.  Check the rates on both at http://www.bankrate.com.  (Not affiliated, just a happy user.)