After years of saving a bit here and there, you can finally see the cash reserve building up! Now the question is, where should you put that money to get the best yield with the least amount of risk? A Money Market Account or Term Share Certificate at the Credit Union can certainly offer a higher yield than most savings accounts at other financial institutions, but which one is best for you?

The main difference between a Credit Union Money Market Account and Term Share Certificate is in the liquidity of the investments. Money Market Accounts are set up so you can readily access your funds without penalty. The price for this convenience is usually a slightly lower yield on your investment. You will have a minimum balance requirement, but you may withdraw from the account at any time (up to three times per month) without penalty. A Term Share Certificate, commonly referred to as a CD, is meant to be a buy-and-hold investment. Your investment is intended to stay on deposit for a specified period of time and therefore, generally earns a bit higher yield. Usually, the longer the term, the higher the yield. However, if you need your money prior to the scheduled maturity date, you may be subject to paying a penalty for early withdrawal. That penalty is typically the loss of three to six months’ worth of dividend income.

Whatever investment you choose with the Credit Union, you can rest assured that your funds are safe. Money on deposit with the Credit Union is insured up to $100,000 per member by the National Credit Union Administration (NCUA), a US Government agency. *Some restrictions may apply