Whether you open a money market account or a certificate of deposit (CD), at an FDIC-member bank like Ally Bank, your money is insured up to the maximum allowed by law. The differences between the two are what make each account a good fit for your goals.

Beyond Rates: Important Features of CDs and Money Market Accounts
According to rates published by Bankrate.com, bank money market rates are usually lower than short-term CD rates, and although their respective interest rates should play a factor in how you decide which account is right for you, there are other key differences between the two you may want to consider.

CDs have fixed terms.
CDs generally offer higher rates than money market accounts because they have fixed terms—you usually can't withdraw money from a CD account until it matures without paying a penalty. One potential exception is the Ally Bank No Penalty CD, but the premise of a CD is that higher interest rate is a trade-off for allowing the bank to hold your money until the account matures. At that point you can withdraw your initial deposit and any interest earned, or put the money into a new CD.

Money market accounts have flexible access.
By contrast, the fact that bank money market rates tend to be lower than short-term CD rates could be seen as a trade-off for the increase in flexibility a money market account affords you. Unlike a CD, you generally can access the funds in a money market account at any time, subject to federal limits on transactions. With the Ally Bank Money Market Account, for example, you can withdraw money by online electronic funds transfer, telephone transfer, check, debit card and ATM.

Which Account Is Best?
Deciding to open either a money market account or short-term CD often boils down to whether you prefer higher rates or greater flexibility. Short-term CDs might be a good option if you're saving for a specific event in the future. A money market account might make sense if you're looking to earn interest on your deposit, but you're not sure when you'll need access to your money. And you could use both together to help you reach a variety of financial goals.

The Ally Bank Advantage
Based on interest rates published by Bankrate, Ally Bank money market rates and CD rates are consistently among the most competitive in the country, and you can open and fund any account with any amount, with no monthly maintenance fees.Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559).

Ally Bank, member FDIC

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