When it comes to saving, many members wonder whether they should lock their funds in a Certificate of Deposit (CD) or keep them accessible in a Money Market Account (MMA) . Both options have benefits, but the right choice often depends on how much flexibility you want. 

Many savers prefer MMAs because they offer flexibility without sacrificing growth. Let’s take a closer look at how CDs and MMAs compare, and why a Money Market Account can be a smart way to build savings while keeping your funds accessible.

WHAT IS A MONEY MARKET ACCOUNT TODAY?

Money Market Accounts have changed over the years. They started as simple savings accounts with limited access. Today, they combine the earning potential of a savings account with access features similar to a checking account, giving you more control over how you manage your money.

Most modern MMAs offer check-writing privileges, making it easy to pay bills or make purchases. Balances earn competitive dividends that support savings goals, and online and mobile banking provide quick, convenient transfers between accounts.

At Texans CU, our MMAs are designed to make your savings work harder. Tiered APYs reward higher balances with higher rates, optional overdraft protection provides added coverage when needed, and there’s no monthly service fee as long as the required minimum balance is maintained.

KEY DIFFERENCES: MMA VS. CD

Before deciding which savings option is right for you, it helps to see how MMAs and CDs compare side by side. The chart below breaks down how they differ:

WHY CHOOSE AN MMA OVER A CD?

Although a CD may offer a higher interest rate, many people prefer MMAs for their flexibility. An MMA isn’t just a place to grow your savings — it also gives you the ability to add or access funds when needed, without early withdrawal penalties. And with our newly upgraded Performance Money Market Account , your savings now get the VIP treatment: more tiers and higher rates than ever before, meaning every time your balance levels up, your rate does too.

Here are four reasons why many people choose MMAs over CDs:

1. EASY ACCESS TO YOUR SAVINGS

With a CD, your funds are locked in until the maturity date, which can range from a few months to several years. But what if you need to access your money for an unexpected expense, like a car repair or medical bill? While early withdrawals are possible, they usually come with penalties that can cost you several months of earned dividends.

With an MMA, your money isn’t locked in. You can access funds as needed through transfers or check-writing features, without early withdrawal penalties. 

2. EARN COMPETITIVE RATES

MMAs typically earn higher dividend rates than standard savings accounts, which can help you reach your financial goals faster. They offer meaningful returns without the long-term commitment of a CD, giving you more control over how and when you use your money. This makes an MMA a smart option for building an emergency fund, saving for a large purchase, and other savings goals.

3. CONVENIENT ACCOUNT MANAGEMENT

Digital and mobile banking tools make it easy to manage your MMA, transfer funds, and stay in control of your finances — even when you’re on the go. Optional overdraft protection can also help prevent declined transactions and unexpected disruptions.

4. YOUR ACCOUNT IS PROTECTED

At Texans CU, our MMAs are federally insured by the National Credit Union Administration (NCUA) for up to $250,000 per depositor.

WHEN A CD MIGHT MAKE SENSE

Although Money Market Accounts offer flexibility and competitive rates, they aren’t always the best solution. Sometimes, a CD makes more sense. The right choice depends on whether you’re comfortable locking away your funds for the long term or need quicker access to your money.

An important benefit of CDs is that they lock in a fixed rate, which can be helpful if you want guaranteed returns and you don't need to access your funds for the term. You'll know exactly what you'll earn, regardless of what's happening in the market. MMAs, on the other hand, have variable rates that can rise or fall depending on actions by the Federal Reserve and economic conditions.

CDs can also work well for long-term goals where liquidity isn’t a priority. For example, a CD may be a good way to grow your money for a wedding, a down payment on a home, college tuition, or other large expenses. Since your funds are locked in until the maturity date, this may help you resist the temptation to make withdrawals for purposes unrelated to your savings goals, which helps you stay on track.

THE TEXANS CU ADVANTAGE

At Texans CU, our Money Market Accounts are designed to balance earning potential with easy access to your money. You can access funds in person, at an ATM, or through online and mobile banking , giving you flexibility when you need it. There are no monthly service fees as long as you maintain the required minimum balance of $2,500.

Our tiered dividend rates reward higher balances, helping your money grow faster without sacrificing access. This makes it easier to reach your financial goals. This means you can earn more without sacrificing access to your money, which makes it easier to reach your financial goals.

Opening an MMA at Texans CU is quick and easy. You can apply online in just a few minutes or drop by a branch. Our friendly team is always here to help and answer any questions you may have.

GET MORE FROM YOUR SAVINGS

With a Texans CU Money Market Account, your savings can grow while staying accessible when it matters most. It’s a smart way to earn more without locking your money away.

Ready for flexibility and growth? Open your Texans Money Market Account today.