FDIC
3 questions
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What is a certificate of deposit (CD)?
A certificate of deposit (CD) is a bank savings product where you deposit money for a fixed term — typically 3 months to 5 years — and earn a guaranteed interest rate in return. You cannot withdraw the money early without paying a penalty, but the rate is locked and FDIC-insured up to $250,000.
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What is a high-yield savings account?
A high-yield savings account (HYSA) pays significantly more interest than a standard savings account — typically 4–5% APY vs the national average of 0.38% — while carrying the same FDIC insurance and no lock-up period.
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What is a money market account?
A money market account (MMA) is a deposit account at a bank or credit union that typically pays higher interest than a standard savings account, is FDIC-insured up to $250,000, and allows limited check-writing or debit card access — but usually requires a higher minimum balance than a regular savings account.