 TITLE: What’s the Difference Between Money Market Accounts, CDs and Savings Accounts? CONTENT: Certificates of Deposit\n-----------------------\nCDs, available from banks and credit unions, are deposit accounts like savings and money market accounts, but there are key differences. When you purchase a CD, a minimum deposit is required. Furthermore, you're not allowed to withdraw money from a CD before a certain period of time expires, such as six months or two years. Otherwise, you'll be hit with a financial penalty.\nAnother disadvantage: You can't use a check, ATM or electronic transfer to access your money.\nThat said, CDs typically provide higher interest rates than savings accounts and sometimes money market accounts. For instance, the average APY for a six-month CD with a balance below $100,000 was 0.10% as of January 21, 2021. The average APY for a 60-month CD was 0.32%. In most cases, the interest rate for a CD doesn't change while the account is open, which is a big perk if you open it before rates are cut.\nOnce the CD's term ends, you can withdraw the money or roll it over to a new CD.\nThe FDIC and NCUA insure CDs up to the same $250,000 limit (per institution and type of account) as savings and money market accounts. END