Investing in CDs/Money Market

[J14K]

Hi all,

I'm looking to invest a small portion of my paycheck every week into either a CD or Money Market account.

Is there any benefit of purchasing CDs when the APR is basically the same as having a money market account?

[GaTech]

The problem with CDs is that yiu cannot withdrawal any $$$$ until the time expires (unless its a liquid CD, which would have a lower rate of return anyways).

[takeshi74]

Benefit is always subjective on any topic.  If you need restaint enforced on you the terms of the CD may help you from spending money that you shouldn't be spending.  If you need the funds to be liquid then the MMA is beneficial.

What does this have to do with credit?

[J14K]

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@takeshi74 wrote:

Benefit is always subjective on any topic.  If you need restaint enforced on you the terms of the CD may help you from spending money that you shouldn't be spending.  If you need the funds to be liquid then the MMA is beneficial.

What does this have to do with credit?

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I would delete it if I could.

I was just looking for insight into potential investment on a forum where users are financially savvy on these types of options.

Thanks for the replies

[IOBA]

I use to purchase a CD every payday for just over a year.  The interest rate was higher than the MM accounts (which rates can change daily, up and down).

It helped us get through furlough without any worries.  Still in furlough status, but we are, for the most part, debt free and living with cash, paycheck to paycheck.  I still set aside xxx amount of money each paycheck in savings, but just not putting it in a CD right now, JUST IN CASE...  

we have no idea how long furlough will last.  And we have one in college to help support.  [He is not eligable for any financial aid.]

So for us, building a nice CD ladder - with CD's maturing 2-4x a month has been nice.  Now we just put xxx into savings to build a cash reserve.  Once furlough is finished, then we will go back to CD's each payperiod.