Two of the most popular savings options are Certificates of Deposit (CDs) and Money Market Accounts (MMAs). While both offer safety and strong returns compared to a standard savings account, they serve different goals. Here’s a simple breakdown to help you decide which one might be best for you.
What Is a CD (Certificate of Deposit)?
A CD is a type of savings account where you agree to keep your money deposited for a set period of time, in exchange for a fixed, higher interest rate.
It’s ideal if you want to lock in a rate and won’t need to access the funds right away.
Key Features:
- Fixed term
- Fixed interest rate for the life of the CD
- Typically higher yield than a standard savings account
- Early withdrawals may result in a penalty
Best for:
Those who want a “set it and forget it” approach — perhaps saving for a future goal like a home, vacation, or large purchase.
What Is a Money Market Account?
A Money Market Account (MMA) is a flexible savings option that combines features of both checking and savings accounts. You earn a competitive interest rate without locking your money away — and you can usually make limited withdrawals or transfers each month.
Key Features:
- Competitive, variable interest rate
- Easy access to funds via transfers or checks
- Often higher balance requirements than a traditional savings account
- Great for short-term goals or emergency funds
Best for:
Those who want to keep their money growing while maintaining access for unexpected expenses or opportunities.
How to Decide Which One Fits You Best
|
Your Goal |
Best Option |
Why |
|
You want to earn a guaranteed rate for a set time |
CD |
Locks in your rate regardless of market changes |
|
You need flexibility to access funds if needed |
Money Market |
Lets you earn while keeping access to your cash |
|
You're building an emergency fund |
Money Market |
Liquidity matters when life happens |
|
You're saving for something specific in the next 6-12 months |
Short-Term CD |
May offer higher returns for a brief commitment |
|
You want to diversify your savings |
Both! |
Split funds - some for flexibility, some for fixed growth |
A Smart Strategy: Combine the Two
Many Nova customers find success using both. For example, you might:
- Keep your emergency fund in a Money Market for easy access.
- Open a CD for money you know you won’t need soon — locking in a guaranteed rate and peace of mind.
This approach lets you balance liquidity and earning potential, making your money work smarter for you.
Let’s Find What Fits You Best
Whether you’re focused on saving steadily or securing the best possible return, Nova Bank is here to help you choose confidently.
Our team can walk you through today’s CD specials, Money Market rates, and how each option fits into your broader financial goals.
✨ Stop by or contact us today to start the conversation — because at Nova, your goals are our mission.
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