CD and Money Market Comparisons

Compare CD rates and money market accounts to determine the best option for you

When you're looking to start saving more you generally have three options: basic savings accounts, money market accounts and certificates of deposit (CDs). Savings accounts are perfect for those individuals just starting to save because these accounts have low minimum balances, easy access and low fees; however, they also may have lower interest rates.

If you've been saving for a while and want to grow your portfolio faster, an account with higher interest rates like a money market or CD could be very beneficial. Compare CD rates and money market accounts to decide which option is best for your current financial situation.

Money market comparison and benefits

Compare money market accounts with other savings accounts by getting a better understanding of the way they function as well as their fees and benefits. Money market accounts have several features you don't find with conventional savings accounts, such as:

  • A higher interest rate that translates into higher yields
  • A higher rate without a fixed term.
  • A system to automatically transfer funds from checking to the money market account
  • A larger required opening balance than savings accounts
  • A larger required minimum balance to avoid fees
  • A set of checks and an ATM card to provide easy access to funds
  • An interest rate that fluctuates with the market

Certificate of deposit comparison and benefits

Compare CD rates to decide whether you should invest in a long-term CD, shorter-term CD or breakable CD. A breakable CD allows you a one-time, penalty-free withdrawal within the fixed term. It's important to note that these accounts tend to have higher opening balance requirements. CDs can earn you more interest in exchange for the commitment of your funds until the end of the term. Learn about some more CD options so you can compare them with money market accounts. Certificates of deposit have:

  • A fixed term that can be as short as a few months or as long as five years
  • A fixed interest rate that will not fluctuate with the market
  • A requirement that funds stay in the account until the end of the term; you'll be charged fees for early withdrawal
  • A larger required opening balance than savings accounts but less than money markets

Decide where to invest your savings with a CD and money market comparison

Now that you have a better understanding of CDs and money market accounts, you are more equipped to make a decision about which one is right for you.

  • A CD can be a good idea if you have a substantial amount of money that you do not need access to but would like to earn a higher rate of interest on. It's also a good idea if you are happy with the fixed interest rate and don't foresee the market rate going higher than this during the term of your CD.
  • Money market accounts may be a better choice if you want to have access to your funds but still desire a higher yield. This can also be a good idea if you see the market improving as this would positively affect your interest rate.

While you need to have a little more cash on hand to invest in a money market account or a CD, you'll earn better interest on that money, and in the long-term, your savings portfolio will benefit more than if you leave your money in traditional savings accounts.

Compare money market accounts and CD rates

Still not sure which option is right for you? Citizens Bank can help you compare CD rates and money market accounts to find the right option based on your current savings level. Compare bank accounts for recommendations that are more specific to your situation, or call 1-877-360-2472 to talk to a representative about your options. If you're ready to open a money market account or CD, you can start saving more today.


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