CD vs. money market account: Which is best for you?

There are many different ways to earn interest on money in your savings account. Certificates of deposit (CDs) and money market savings accounts are two of the most popular financial tools that can help individuals boost their savings. 

Certificate of Deposit

A certificate of deposit (CD) is a savings account that holds a lump sum of money for a specific period, typically at least one year. Credit union members or bank customers earn interest on the total deposited amount, and fees are applied if the cash is withdrawn early. The longer the money remains in the account, the more interest you will earn. CDs with longer terms (at least two years or more) usually receive higher interest rates than one-year CDs. 

What are the benefits of certificates of deposit?

  • Certificates of deposit usually offer higher interest rates than savings or money market accounts because the funds are pledged for a fixed amount of time. 
  • Some financial institutions offer lower to no penalties for early withdrawals if emergencies or financial issues occur. 
  • Certificates of deposit tend to be safer investments than buying and selling stocks or bonds, with guaranteed rates of return. However, returns are often smaller. 

Money Market Savings account

Texas Tech Credit Union’s Money Market Savings account is a savings account that provides members with a higher interest rate than a traditional savings account, as long as the minimum account balance is met. 

The TTCU Money Market Savings account is a great choice for anyone who maintains a higher balance in their savings account—the more money you put away, the more interest you will earn.  

What are the benefits of a TTCU Money Market Savings account?

  • Free e-statements and online banking benefits. You can sign up to have banking statements sent to your email at no cost. 
  • No monthly fee. The Money Market account is free, as long as your daily balance averages $1,000 or more. 
  • Free checks. You will receive your first 25 checks at no cost. 
  • Low fees for accounts under $1,000. If your Money Market account dips below $1,000, pay a $5 monthly service fee.

What are TTCU’s Money Market Savings account interest rates

  • Actual rates are subject to change, based on account qualification and underwriting criteria and fees may reduce earnings. For Current Rates visit or call (806) 742-3606.

Money market account vs. certificates of deposit: Which one is the best option for your financial situation?

A certificate of deposit is ideal if:

  • You don’t need cash immediately and can put it away for at least 1-2 years. 
  • You are looking for a low-risk investment that is guaranteed to yield moderate returns. 

A money market savings account may be a better option if: 

  • You can maintain the minimum balance required to avoid monthly fees.
  • You are interested in upgrading from the interest rate earned on a conventional savings account to a higher earning rate. 
  • You need access to your cash regularly or in the near future. Unlike a CD, withdrawals made from a money market account aren’t penalized and can be made at any time. 

Get the information you need.

Want to learn more about Texas Tech Credit Union’s certificate of deposit and Money Market Savings account options? Stop by and speak with a personal banker or visit our CD and Money Market pages.