CD vs Money Market vs Savings: Which is Right for You? | WaterStone Bank

Saving is critical to your financial security and wellbeing. You never know when you might need to tap into your savings to offset an unexpected expense. Plus, saving is a great way to build toward goals like purchasing a home or booking a vacation.

But there is no one-size-fits-all solution when it comes to saving. In addition to a traditional bank savings account, you might also be curious about certificate of deposit accounts (CDs) and money market accounts, which accrue interest at higher rates than a savings account.

Here are a few pointers to help you decide which account is right for you.

Savings accounts

A savings account is an important part of everyone’s financial portfolio. These accounts have low minimum balances and minimal or zero fees. At WaterStone Bank, we also offer a special savings account for kids with no minimum balance and only $25 required to open an account. It provides a great way for kids to start learning good financial habits early on.

Compared to CDs and money market accounts, saving accounts earn less interest, but they come with fewer requirements and make it easy to access your money any time you need it.


CDs are an excellent option if you want to earn more interest than a traditional savings account offers but you aren’t comfortable with the volatility of the stock market. They’re also ideal for savers with a longer horizon who can afford to set some money aside for a while.

A CD requires keeping your money in the account for a set period of time, which can be anywhere from one month to several years. CDs come with a fixed interest rate, which means your rate is locked in for the term of your CD.

The interest rates, minimum balances and terms vary across products. At WaterStone Bank, you can open a CD account with as little as $100. You can also compare the current rates for CD accounts on our website.

Money market accounts

A money market account is an excellent option for savers that are looking for higher interest rates than savings accounts but don’t want to set money aside for a set period in a CD.

Money market accounts have lower interest rates than CDs, but they also offer more flexible terms and easier access to your cash. At WaterStone Bank, your money market account can even be used for overdraft protection on a linked checking account.

Ready to open the account that fits your needs? Visit your local WaterStone Bank branch or call (414) 761-1000 today.

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