Jennifer Lough

Nov 06 2019

What’s the Difference between Money Market Accounts and CDs?


Once your basic account needs are met with a checking and/or savings account, you may decide that opening a more robust account  would better suit your financial needs. Money market accounts (MMAs) and certificates of deposit (CDs) typically earn a higher interest rate than basic checking or savings account, but are two very different accounts.

Money Market Account

A money market account is a type of savings account that typically earns more interest than a basic savings account – and also requires a larger minimum deposit. As with most  savings accounts, MMAs limit your monthly transaction amount.  Overall, this account type is intended to hold your money for an extended period of time with minimal withdrawals.

Certificate of Deposit

A CD is a timed deposit, which means you leave your money with the bank and are unable to withdraw it until a certain amount of time has passed. This amount of time can be anywhere from a few months to several years. Typically, the longer you leave your money in a CD, the higher the interest rate on that CD will be. If you are considering a CD, be sure you are comfortable with the terms of the agreement, because withdrawing any money before the end of the CD term can result in penalty costs.


When deciding which account will best fit your financial situation, first decide how long you intend to keep your money in the account. You also do not have to pick just one account to house all your money in. A mix of account types is beneficial to anyone’s overall financial portfolio.

If you are interested in learning more about the accounts Hills Bank offers, visit us online at to live chat with us, speak with a banker at 1-800-445-5725 or through our HERE app on your smartphone, or stop by any of our locations to have a conversation today!

Jennifer Lough

About Jennifer Lough

Jennifer Lough is a Vice President and Branch Manager at Hills Bank’s Coralville location and University of Iowa Hospital and Clinics location. She has been at Hills Bank since 2000 helping customers with checking, savings, and loan needs. Jennifer has 20+ years of experience in the banking industry. Her joys in life are her two sons, her husband Brian, returning to her family’s farm, and exercising. She can be reached at

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