CD vs Money Market... Which One is Right for Me?

In the rising rate environment that we find ourselves in today, you may see CD rates as well as Money Market rates. You might be thinking to yourself which one is right for me, and why should I care? If you care about your money, you should make a studied decision on which account you should open. A Money Market account functions like a checking account with limitations on how many transactions you can preform before a fee is assessed. With a Money Market account, the bank has the flexibility to change the rate at anytime without notifying the customer.  A CD (Certificate of Deposit or Time Deposit) is set at a term (3 months, 6 months, 12 months, 36 months etc.) and your money will draw that interest till the end of the set term. 
 

When it comes to saving money, choosing the right account is essential. Two popular options to consider are Money Market accounts and Certificate of Deposits (CDs). While both offer interest on savings, they have unique features that make one better suited to your needs.

Money Market

A Money Market account is similar to a checking account but with restrictions on the number of transactions you can make. It's ideal for those who want easy access to their funds and interest on their savings. Unlike CDs, Money Market accounts have no fixed term and offer flexibility, but the interest rate can fluctuate at any time without notice.

Certificate of Deposits

On the other hand, CDs are time deposits with fixed terms, ranging from 30 days to 60 months or more. They usually offer higher interest rates than Money Market accounts, but withdrawing funds early may result in penalties. CDs are best for long-term savings goals, as they require a commitment of funds for a specific period.

Okay Which Account is Right for Me? 

At First State Bank, we understand that selecting the right account can be overwhelming. That's why we offer a range of savings accounts to fit your unique goals. Our Prime Money Market account is a flexible option that offers competitive rates, click here for more information. Our experts monitor the rate environment to ensure our customers get the best possible deal. For higher interest rates and a set term, a CD may be a better choice. We offer CDs with various terms to meet your savings goals.

At First State Bank, we're committed to providing top-notch service and expertise. Our savings experts are available to help guide you in making the right choice for your financial goals. Whether you're new to saving or an experienced saver, we're here to support you. Start saving with confidence and come talk to us today!



*See banker for details on available certificate of Deposit and Money Market products
*Fees may apply, see schedule of fees for details
*See banker for details on current rates