What is better a CD Account or a Money Market account?

Right now Citi Bank has a really good CD 6 months 5.0%apy or should i do a money Market which i dont know too much about?
What is better a CD Account or a Money Market account?
Compare the interest rates between them. Money markets invests in debt securities (such as government bonds) and may sometime perform better than a CD account.





I don't particularly like CDs because you have to hold the money in there for a period of time before you can take it out. Money markets are easily liquidable.
Reply:Without doing the research, I can't give you a definite answer, but here are the things I'd consider:


- What return is the money market account giving?


- Is there any chance you'd need the money before 6 months? (Money market accounts usually allow you to get your money at any time, without penalty)


- Do you think interest rates will go up, down, or stay the same over the next 6 months? (The CD rate won't change during the 6 months, the money market rate will probably go up or down along with interest rates.) I think most people expect rates to stay pretty much the same for the next 6 months.





If the return is the same, I personally would choose the money market account just because of the flexibility to take the money out whenever I want. If the CD is yielding significantly more, though, I'd do that.





If you're investing for the long-term (10 years or more) however, I think both are poor choices. For long-term investments, stocks have historically provided a much higher return than either CDs or money market accounts, which after taxes usually barely keep up with inflation.