Types of Savings Accounts

Missouri Credit Union offers standard savings accounts that are connected to your checking, certificates of deposit (CDs) and Money Market Accounts. Each of these accounts have pros and cons, and offer benefits for different goals.

What is a savings account, and who is it best for?

Savings accounts can be used by anyone. You can instantly deposit and access money in your savings account, even from your phone using our mobile banking app. While this freedom is excellent, a standard savings account has a lower interest rate. So while you can access your money whenever you need, you aren't gaining as much interest over time.

What is a CD, and who is it best for?

A certificate of deposit is another type of savings account that is popular with our members. When you purchase a CD, you can set the term (aka the maturation date) of the account. MCU offers CDs with maturation terms from 12 months through 60 months. The longer the term, the higher the rate and annual percentage yield. CDs are great for those who want to earn a higher interest rate and don't need to access the money for a while. CDs are not as beneficial for those may need to access the funds before the term, or who have under $500 to deposit.

With Missouri Credit Union, you can also do a Payroll Deposit CD (PD CD) that allows you to add money directly to your CD from your paycheck. This is a great way to open a CD without the minimum $500 deposit required for a traditional CD.

What is a Money Market Account, and who is it best for?

Money Market Accounts are insured by the NCUA & ESI, making them an excellent and safe savings investment. Money Market Accounts are more liquid, or easier to access than CDs or other savings accounts such as IRAs. Money Market Accounts carry higher rates and annual percentage yields than a traditional savings account and accumulate interest monthly. However, the interest rates are not as high as CDs and the number of withdrawals per month is limited. Another consideration for this type of account is it requires a minimum deposit of $1000. This type of savings account is excellent for those who want a higher interest rate and the ability to access their money as needed.