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2006-08-23 12:11:59 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
airbob61@ver... misunderstands money market accounts. Money market funds pool money the invest in extremely short term securities. Usually corporate debt payable in days or overnight. While they are not insured, the risk of lost is vanishingly small. Money market accounts are usually savings accounts with interest rates tied to the earnings of money market funds.
Cd's pay a fixed rate of interest for a set amount of time. The rates tend to be higher, but there are penalties for early withdraw. Penalties can be as much as 3 months interest.
2006-08-23 15:11:56 · answer #1 · answered by STEVEN F 7 · 1⤊ 0⤋
In a money market acc. your money is pooled with others and is used to make investments on the stock market,real estate ventures etc. Down side is that you can lose your money which is not insured by the government. CD the interest rate paid is guaranteed and compounded daily during the life of the CD. Accounts are insured by the gov. up to $100,000.
2006-08-23 12:22:34 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Money Market is liquid and the interest rate it pays can change constantly.
CD locks your money up for a certain period of time & pays the interest rate listed.
I have a money market for my emergency savings account as I can write checks from it as needed... CDs suck actually.
2006-08-23 12:18:28 · answer #3 · answered by Dubberino 3 · 2⤊ 0⤋
CD you can't get your money out without a penalty. Money market, you can get your money out although sometimes there are limits.
2006-08-23 12:29:43 · answer #4 · answered by Anonymous · 1⤊ 0⤋