When it comes to money market accounts and certificates of deposit (CD) of investments, there is little glamor. Perhaps for good reason, because they are not the sexiest investments available today. However, they play a valuable role. money market accounts and CDs for more conservative investors. When it comes to CD accounts and money market, capital preservation is paramount. Let’s look more closely at the role of these investments have little sexy.

In fact, money market accounts and CD accounts often play a role quite different. Very often, money market accounts and money market funds meet the need for temporary placement. This allows active investors, the possibility of using money market accounts and investment vehicles in the short term. Investors and traders who buy and sell securities, often need a place for active when not in use. This is very important, because operators are able to keep his money working for them, but at relatively low interest rates. Investment CD-ROM is a more often related to the prudent investor seeking safety. Certificates of deposit are insured by the FDIC for up to $ 100,000 per account. The downside to CD investing is that CDs often require that you lock your money for a period of time, usually one to two years. This makes them less likely than their counterparts in the money market. As a compromise, CDs, usually pay a higher yield, but this is not always the case. » Read more: Finding Money Market Accounts and the Best CD Rates