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What is the difference between a certificate of deposit and a money market account?

April 26, 2017account Certificate of Deposit difference Money Market

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What is the difference between a certificate of deposit and a money market account?

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A certificate of deposit is a term account requiring you to deposit an amount of money for a specified length of time in order to benefit from the interest rate offered. An early withdrawal usually entails a penalty. A money market account is a liquid account, meaning you can make withdrawals, deposits, or close the account at any time without fees or penalties. However, with a liquid account, the interest rate is also variable.