CD or Money Market: Where to Stash Your Cash

Both CDs and money market accounts offer good prospects right now. What's the difference and which should you choose?

A woman in her office looks at bills.
(Image credit: Getty Images)

You want to earn higher yields on your spare cash but you’re unsure of which account to store it in. Learn whether a CD or money market is a better fit for you. 

In a high-interest rate environment, it pays to save your money. There are several savings vehicles to choose from, but CDs and money market accounts typically pay higher interest rates or Annual Percentage Yield (APY) for storing your extra cash. The two account types bear a few similarities, but which one is better for boosting your savings? 

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Seychelle Thomas
Contributing Writer

Seychelle is a seasoned financial professional turned personal finance writer. She’s passionate about empowering people to make smart financial decisions by combining 10 years of finance industry experience with solid research and a wealth of knowledge. Seychelle is also a Nav-certified credit and lending expert who has explored money topics such as debt consolidation, budgeting, credit, and lending in her work for publications including GOBankingRates, LendEDU, and Credible.