Growing your savings can be easier with the right account choice. Two popular options are Certificates of Deposit (CDs) and Money Market Accounts (MMAs).
Both can earn more than a standard savings account. They work differently, depending on your goals. Here’s a look at how each one works, and how to decide which might be a better fit for you and your savings needs.
What is a CD?
A Certificate of Deposit (CD) is a savings account. You agree to keep your money in it for a set time.
The term can last from a few months to several years. In return, you earn a fixed interest rate. At Needham Bank we offer CDs with terms ranging from 3 months to 5 years, with a minimum opening deposit as low as $1,000.
Pros of a CD:
- Fixed rate for the full term, so you’ll know exactly what you’ll earn regardless of market changes
- Competitive rates
- FDIC insured up to applicable limits
Cons of a CD:
- Limited access to your funds during the term (early withdrawal may result in a penalty)
- Less flexibility— once your rate is locked in, you can’t benefit from rising rates
- Not ideal for emergency funds or short-term needs
Explore our CD Options and see how you can lock in a competitive rate today.
What is a Money Market Account?
A Money Market Account (MMA) offers the earning potential of a savings account. It also provides the flexibility and liquidity of a checking account. At Needham Bank, we offer three Money Market options for different savings goals. These include the NB Money Market, the Super Saver Money Market, and the Premium Money Market.
Pros of a Money Market Account:
- More flexibility than a CD— access to your funds when you need them through Online & Mobile Banking
- Competitive rates that reward higher balances
- FDIC Insured for security confidence
- No monthly maintenance fees on select accounts
Cons of a Money Market Account:
- Variable rates are subject to change based on market conditions
- Lower earning potential than a longer-term CD if rates decline
- May require a higher minimum balance to avoid fees or earn the top rate
Learn more about our Money Market Accounts find the option that fits your balance and goals.
So, which should you choose?
It depends on what you’re saving for:
- Choose a CD if you can set funds aside for a fixed period and want the certainty of a guaranteed term.
- Choose a Money Market Account for flexibility.
- You can access your money easily.
- You can also earn a competitive rate.
Some savers use both. They keep part in a CD for steady long-term growth. They keep the rest in a Money Market Account for short-term access. That way you get the benefits of both.
Unsure which one is right for you? Our team is happy to help you build a savings strategy that fits your needs and goals.
Open a CD | Open a Money Market Account
