A money market account is a type of interest-earning bank account. Unlike CDs, you can deposit funds — and withdraw them — whenever you like . They often come with debit cards and check-writing capabilities, so you may want one if you need easy access to money and don't want to get hit with penalties.
"The difference between a money market account and a CD is that money market accounts offer greater liquidity than CDs, as you can usually access your funds at any time without penalty," Petersmarck says."CDs, on the other hand, have a fixed term, and you generally can't access your money until the term is up without incurring an early withdrawal penalty.". They may also have larger minimum balance requirements, meaning they're not an option for every budget.
If you're not sure which is the best option for your money, it might be wise to talk with a financial professional. They can point you toward the right accounts for your goals and budget.