What is a certificate of deposit?

A certificate of deposit is another type of deposit account in which the account holder agrees to leave her money on deposit for a set term, at a set interest rate. "It allows the member to earn a higher interest rate than savings accounts as an incentive on larger account balances that are deposited for longer time periods," Arreola says.

Are certificates of deposit accounts better than money market accounts?

Certificates of deposit and money market accounts are two different options for savings. Both have pros and cons and one may be better suited to your needs than the other. Taking time to learn the ins and outs of CDs and money market accounts can help you decide which one is right for you. What Is a Certificate of Deposit Account?

What is a money market account (MMA) & a certificate of deposit (CD)?

Money market accounts (MMAs) and certificates of deposit (CDs) each provide a boost to your savings by offering competitive rates but differ in how liquid — the ability to be converted into cash easily at any time — they are.