What is the difference between a money market account and a certificate of deposit CD

What is the difference between a money market account and a certificate of deposit (CD) Introduction: The Quest for Financial Growth Greetings, everyone! In today's video, we're exploring the world of banking, specifically the differences between money market accounts and certificates of deposit. As we navigate the intricacies of these financial tools, we'll equip you with the knowledge to make sound decisions for your hard-earned money. So, let's dive in! Section 1: Defining Money Market Accounts A money market account is a type of savings account offered by banks and credit unions. It combines the features of a traditional savings account with certain aspects of a checking account. One key characteristic is the higher interest rate compared to regular savings accounts. This is because the funds deposited in a money market account are often invested in low-risk, short-term securities, such as Treasury bills or commercial paper. Additionally, money market accounts typically come with check-writing privileges, making them more versatile for day-to-day transactions. Section 2: Unraveling Certificate of Deposits (CDs) Certificates of deposit, commonly known as CDs, are time deposits. When you open a CD, you agree to keep your money with the bank for a specified period, known as the term.