What’s the difference between these banking options?
Question by JudasHero: What’s the difference between these banking options?
What’s the difference between a CD, a money market account and a FOREX account? I know what they all are individually, but they all just seem like different forms of savings accounts to me. Are there any distinct differences between them?
Best answer:
Answer by jeff410
A CD is a time deposit. You have to leave it in the bank for a certain amount of time or pay a penalty.. A money market account is a demand deposit. You take it out any time you want without penalty. The interest rate is generally higher on a CD because of the time you have to leave it there. FOREX is exchange of the currency of one country for the currency of another country. Its a service banks offer.
What do you think? Answer below!
If you’re in the USA;
A CD and a money market account are insured by the US Gov’t. They are considered “safe” investments. Any FOREX (currency) account can and will fluctuate… sometimes greatly in it’s value. This is considered by many as not safe… you can suffer a significant loss.
Money Market – Cash available any business day.
CD – Held by the bank for a specific time period, chosen by you, in return for a higher rate.
Forex – Too many variables to explain here.
A Certificate of Deposit is a bank deposit that usually has a constant interest rate over a set period of time.
A money market account is a higher yielding checking account.
A forex account has nothing to do with banking. It is an account with a forex dealer in which you trade currencies (foreign exchange).