CD, Money Market, savings account: Which is right for you?

Savings accounts, Money Market accounts (MMA) and certificate of deposit (CD) accounts are all types of federally-insured deposit accounts which earn interest. They have many things in common, but they differ in some important ways. Understanding those differences can help you pick the type of account you need.

Decide which type of account is best for you

Which is right for you? CD, Money Market, savings

  Savings account Money Market account

Certificate of deposit

Best for

Members who want to earn interest on their money and want to access their money without fees or penalties.

Members who want to earn a higher interest rate on their money than offered by a Basic Savings Account, and who want to access their money without fees or penalties.

Members who want to earn more interest on their money than offered by a Basic Savings Account or Money Market, and who do not need to access their money during the period of the term.

Interest

Lowest of the three, subject to change.

Higher than a savings account, subject to change.

Highest of the three, stays constant for the duration of the term and is influenced by the length of the term and how much money is deposited into the CD.

Term

Open ended, does not apply.

Open ended, does not apply.

Is predetermined at time account is opened, ranges from 6-60 months

Deposits

Unlimited deposits.

Unlimited deposits.

Once CD is opened, no further deposits allowed until maturity.

Withdrawals

Unlimited withdrawals in branch. Limited to six withdrawals outside of a branch.

Unlimited withdrawals in branch. Limited to six withdrawals outside of a branch.

Withdraw at the end of the term when the CD matures. Can withdraw accrued interest prior to maturity. Withdrawing capital prior to maturity incurs a fee.

Fees

Low-to-no monthly fees depending on your account balance.

Low-to-no monthly fees depending on your account balance.

No monthly fees; will incur fee if redeemed prior to maturity.

Acess funds

Branch, ATM

Branch, ATM

Branch

Check balance

Branch, ATM, online banking, PAT

Branch, ATM, online banking, PAT

Branch, online banking, PAT

 

 

 

Back to financial education resources

Go to main navigation