Share Certificates vs Money Markets


You have some cash and are in between investments. Until you're ready to make a long-term investment, you need to put your money somewhere, but what's the best option? Share Certificate (similar to banks' Certificates of Deposit) and Money Market accounts are both great short-term investment products that will yield more than a regular savings account, but it's important to know which best suits your needs and priorities.

Share Certificates

A Share Certificate is similar to a certificate of deposit (CD) issued by a credit union that pays a certain dividend if held for a specific period or term. Funds are not "liquid," as a penalty is usually assessed if any portion of the principal is withdrawn before maturity.

In general, Share Certificates are a good choice if:

  • You do not need to access your funds for a certain length of time, usually a minimum of 30 days (the longer the term, the higher the rate)
  • You want to calculate your expected earnings at the outset of the investment
  • You want a federally insured investment product with a guaranteed rate of return
  • You can meet the minimum opening balance requirement, typically between $500 and $1,000
  • You want a higher interest rate than a Money Market Account or Regular Savings Account

Money Market Accounts

A Money Market Account is a special savings account that offers an adjustable rate and the ability to withdraw funds at any time without incurring a penalty.

Invest in a Money Market Account if:

  • You want a higher savings rate than a regular savings account
  • You want access to your funds at all times without incurring a penalty (as long as the minimum balance requirement is met)
  • You have the minimum opening deposit, typically between $0 and $10,000
  • You want a federally insured investment product
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