Is a Certificate of Deposit Better than a Money Market Account?

• CDs are safe when purchased through a NCUA or FDIC insured credit union or bank. 
• CDs offer a higher interest rate than regular savings accounts. This means that your money will grow faster in a CD than it would just sitting in a savings account. And since CDs typically have longer terms than savings accounts, you can end up earning a lot more money in interest over time.
• No monthly maintenance fees. Some financial institutions charge fees for having a savings or money market account. You wouldn't have to worry about that with a CD. Woo-hoo, you get to keep the interest you earn (all of it). Just don’t withdraw your funds before it matures or else you’ll get hit with fees.  
• Guaranteed returns. When you  invest your money for a predetermined period of time, you'll earn interest on the money that you have deposited, ensuring a predictable return on your initial investment.
  For example, say you open a five-year (60-month) Regular CD with $6,000 and earn a 4.00% APY. At the end of your CD term, you’d have $7,300 and change. If you’re saving for a long-term goal that has a specific end date, you can tailor your choice of CD terms and interest rates to help you meet your goal.

Here's a CD calculator so you can see how much your CD could be worth.

• Have to wait to use to access funds.  With CDs the requirement for many institutions is that you have to wait until your funds mature before you can access it. 
• Your money will be inaccessible for a certain period of time. Meaning that you won't be able to access it in the event of an emergency.
  Also, many people find that having their savings held up over long periods of time can be limiting and make it more difficult to achieve their financial goals. 
• Interest rate may not grow. There's always the risk that your rates are low  and there won't be a great return of funds.  

• Can access your money often times out of the month. Unlike certificate of deposit accounts where you're limited to accessing your money until it matures. 
• Offer higher interest rates than regular savings accounts. This means that your money will grow more quickly over time, helping it to keep pace with inflation.

• Can offer stability. This is by maintaining an established interest rate that does not fluctuate unpredictably. By keeping money in this type of account, you know exactly how much your money will grow over time, making money market accounts a great option for those who want to invest their money but also need some degree of certainty. 

• High minimum deposit or balance requirement. This may be higher than what's required for a checking or savings account depending on the financial institution.  Money market accounts often come with minimum balance requirements, or limits on the amount of money that can be deposited at one time, which may not work for people who want to save up a substantial sum of money.
• Transaction restrictions  Even though you can access and withdraw funds from the account, many financial institutions typically allow a certain number of purchases and transfers each month (typically 6), which may not be appealing if you need quick access to your funds more often. Psst... If you do more than 6 transactions per month, financial institutions could charge a fee. The fee could be anywhere from $5 or $10 and up. 
• Interest rates won't stay the same. Interest rates for an MMA may vary depending on the overall market's interest rates. This can mean you'll earn less interest. Psst... interest rates can rise as well but you can't predict what may happen with market rates.