Is a CD or a money market account better now? Here's what 3 experts think.

We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms.

The Federal Reserve held its benchmark rate at a range of 3.5% to 3.75% at its July meeting, the fifth straight pause on rate changes. However, three Fed officials broke ranks and voted to raise it at the latest meeting, and that split has led some analysts and experts to believe there will be more rate hike pressure at its next meeting. Case in point? As of early August, the CME Group's FedWatch Tool shows a nearly 70% probability of a rate hike at the next Fed meeting.

"We entered 2026 with the market expecting multiple rate cuts," says Derik Farrar, senior vice president and head of everyday banking and borrowing at U.S. Bank. "We've had no cuts, and now the next move is likely up."

If the Fed does raise interest rates, yields on deposit accounts may follow suit. That could benefit savers who open certain accounts now. Traditional savings accounts return a paltry yield, but many certificates of deposit (CDs) and money market accounts are currently offering rates of about 4% on average, slightly above the current 3.5% inflation rate. So. if you've got savings you want to start earning interest on, it may help to understand how these two accounts compare right now.

We asked banking and financial experts to weigh in on whether a CD or money market account could make more sense for savers in today's rate climate. Here's what they had to say:

A guaranteed rate is the main reason a CD could be a solid choice right now, experts say, regardless of what the Fed does next. Opening this type of account could make a lot of sense considering CD rates are still high — and the rate you lock in will remain the same until the CD matures.

"Right now I'd point most savers toward a CD, not a money market account," says Jeff Judge, a managing partner and certified financial planner at Chesapeake Financial Planners.

While interest rates could rise, no one knows for certain where rates will go next, and recent events show how quickly expectations can change. When Kevin Warsh took over as Fed chair this spring, many expected him to support rate cuts amid pressure from the current administration. Instead, Warsh has held rates steady at the last two Fed meetings and has taken a tougher stance on inflation.

Will Warsh return to supporting lower interest rates, or will the committee continue to hold rates or even raise them? When it comes to CDs, you don't need to predict the correct answer. You can simply lock in a solid, guaranteed CD rate whi