High-yield savings certificates vs. money market accounts: What’s the difference?
September 21, 2026
If you’re trying to decide between opening a certificate or a money market account, here is the main difference: Certificates lock in your dividend rate for a set period of time and funds typically cannot be accessed until the end of the certificate term (anywhere from 3 months to 5 years at Redwood Credit Union), while money market accounts offer immediate access to your funds anytime.
Both accounts can help you set money aside and earn higher dividend rates than regular savings accounts. The right choice depends on whether you can lock money away for a while or you need to keep it readily available for shorter-term needs.
If you have money you won’t need right away, a certificate may be a good fit for earning higher dividends. If you need ongoing access to your money, a money market account may be a better fit.
Here is the easiest way to compare them:
| Feature | Certificate | Money market account |
| Access to funds | Less flexible because you commit to a specific term | Easier access to funds |
| Best for | Money you can put aside for a set period of time | Money you need to access sooner (for example, for emergency savings, upcoming bills, or other short-term needs) |
| Dividend rate | Locked in for the term of the certificate | May be subject to change |
How do these options compare at RCU?
At RCU, the same basic comparison applies: certificates lock in your rate for the term, while money markets offer easier access to funds. However, RCU also offers one-time options for certificates that allow you to “bump up” your dividend rate if rates increase during the certificate term OR to deposit additional funds in your certificate. And, there are no transaction limits or monthly or minimum balance fees with any RCU money market account.
If you need help deciding which account fits your savings goal, contact us and we’ll help you take the next step.
PPP Forgiveness Application Deadline
Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:
- PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
- RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
- Your correct deadline will be reflected in your online banking account.
If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.
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