I am trying to decide to invest some money, but undecided b/w money market and CDs.?

I am trying to decide to invest some money, but undecided b/w money market and CDs. Does any body know the formula to calculate the profit of each? Thanks

Which ever one has the highest yield, pays more. The only thing you need to look at to determine which one pays more is the yield.

There is no formula to calculate. You need to decide which one is best for you in regards to interest & liquididty. If you have no need for immediate liquidity & the rate is better, go with a CD. For a better rate, you may have to sacrifice liquidity, for better liquidity, you may have to sacrifice rate.

Both CD & money market dont pay that great, but you will not lose money like you will in the market. That is what you sacrifice. Depending on where you go, you will find lots of bank or credit union CDs around 4% or so. My credit union is running a "crazy 8 promotion" next month to get more CD business. They offer 8% for 8 months & you have 8 days to sign up!

Rate of return for both money markets and CDs are extremely low, probably lower than the rate of inflation. If you really want to make your money work for you, and if you are willing to take losses at first, you might want to consider the....

...stock market! :O

My financial advisor seems to think that the 'recession' is coming to an end. I believe it too. I put in $1000 to BAC a few weeks ago.

I would go to a bank, its sort of their job to give you advice at no obligation. And with the recession, I'm sure they'd be more than happy to help you out, they sure don't have anything else to do.

I don't know the formulas offhand, but both are tied to the current prime rate, which is very low. I would personally recommend another investment vehicle, such as the stock market, but only after thorough research. I recommend IBD.com as a good starting point.

Depending on how much you have to invest CD may give you a little more return but they tie your money up longer. If you only have a couple thousand than go with a Money Market because if you need the money then you can get it easier and the return will be about the same. If you don't need it for a while then look at a mutual fund. T Rowe Price & Vanguard have some good ones. Much better return, at least 2-3 times that as a CD or MM.

Interest rates are so low now that either one will not keep up with inflation. Invest in quality utility stocks. The interest rates are higher and the tax rates lower. At least you'll stand a chance against inflation.

If I had to decide between cd's or money market, I would go with the money market because they both don't pay off alot but the money in more liquid. If you're interested in stocks I would really do my research because who knows how low the market will go. You could end up losing a lot of money.

There are better options.
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I wish you success!

Money market but not stock market as the crisis is coming this year.

Diversity is the key.

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