Makes it easy to budget for a special occasion like a Christmas or a vacation. Usually an option of direct deposit. Money Market Account Initial deposit and minimum balance are usually higher than regular savings accounts. Interest rate is usually higher. Check writing privileges, a free checking account, free ATM use are possible extras offered.
CDs Pays higher interest.
The longer the period of time the CD is for, the higher the interest rate. No additional deposits are allowed. Penalties for early withdrawals. Hybrid CDs Usually lower interest rates than regular CDs, but higher than Money Market Accounts. Additional deposits allowed.