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Summary: A CD (certificate of deposit) is an agreement with a bank to hold money for specific durations, which is different than a money market account. Discover more about the difference between CD and money market accounts with tips from a registered financial consultant in this free video on financial planning.
Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more
"This is financial adviser, Patrick Munro, talking about what is the difference between CD and a money market account. A CD is a certificate of deposit with a bank or financial institution. As such the money is tied up for a definable period of time. It can be one month, three months, six months, a year or more. During that time you do not have access to your money or there will be a penalty. A money market account on the other hand is a completely liquid vehicle. You can place it with a financial institution and at your will, you can take it back into your control. So, it is clear to see here that the most liquid investment between a CD, a certificate of deposit, and a money market account is clearly the money market account that is the most liquid investment. This is Patrick Munro talking about the differences in liquidity between a certificate of deposit and a money market account."