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CDs vs Money Market Accounts: Which Should You Choose for Your Savings?

CDs vs Money Market Accounts: Which Should You Choose for Your Savings?

Finances
SouthEast Bank| November 7, 2023
CDs vs Money Market Accounts: Which Should You Choose for Your Savings?

When it comes to saving and growing your money, there are various options to consider. Among the most popular choices for individuals looking to earn interest on their savings are Certificates of Deposit (CDs) and Money Market Accounts. At Southeast Bank, we’re here to help you make an informed decision about where to invest your hard-earned money. 

What are CDs?

Certificates of Deposit (CDs) are a time-bound savings option that allows you to deposit a fixed sum of money with a financial institution for a predetermined period, typically ranging from a few months to several years. In return, you’ll receive a higher interest rate compared to a standard savings account. Here’s why CDs can be a good choice:

However, there are some downsides to consider:

Learn more:  Are CDs a Good Investment? Exploring the Pros and Cons

What are Money Market Accounts?

Money Market Accounts are a type of savings account that combines some features of both savings and checking accounts. They offer a balance between the availability of your money and higher interest rates. Some banks offer debit cards with the account, which allows owners to make deposits, withdrawals and transfers. Along with debit cards, features such as check writing are also often available. Here’s why Money Market Accounts might be an attractive option:

What is the downside of a money market account?

Choosing the Right Option for You

The choice between CDs and Money Market Accounts depends on your financial goals, risk tolerance, and the need for access to your funds. Here are some guidelines to consider:

Choose CDs if:

Choose Money Market Accounts if:

Ultimately, whether you opt for a CD or a Money Market Account, we provide viable and secure options for both at SouthEast Bank as a Member FDIC. Consider your financial goals and needs carefully to make the right choice. Diversifying your savings strategy with a combination of both can also be a smart move, ensuring you enjoy the benefits of both easy access to your money and guaranteed returns.

Contact Us to discuss your specific financial goals and select the option that aligns with your objectives. Your financial future is in your hands, and we’re here to help you make the most of it.