Which is better- Money Market or CD?

Question

Which is better- Money Market or CD?

Answer 1

If you need access to you money quickly, or you think rates are going up, do MM fund.

If you think rates will fall and can lock up a high rate for a while do CDs.

Answer 2

It depends on when you want access to your money.

A certificate (CD) usually pays a higher rate of return, but you have to commit your funds for a specific period of time.

A money market account allows you more convenient access, and often includes check-writing privileges.  Most often, a money market account pays a lower return than a CD.

You should also be aware that only the types of money market accounts offered by banks and credit unions are federally insured.  Money market accounts offered by brokerage firms are not federally insured and also are not covered by Regulation E, which offers protection from fraud involving electronic transfers.

Answer 3

It depends on:

who is the issuer?

In todays world, make sure your MM or CD is covered by FDIC.

If you do not need your funds for a certain time, then a CD should pay more interest.