Time Commitment

Certificate: One of the defining characteristics of Certificates is that they have a fixed term, ranging from several months to several years. During this period, you agree not to withdraw your funds without incurring a penalty. At Launch, our Certificates range from 6-month to 60-month terms.

Money Market: They offer a high level of flexibility when it comes to time commitment. With a Money Market, you are not bound by a predetermined maturity date. This means you have the freedom to access your funds without incurring early withdrawal penalties. They do, however, tend to have lower dividend rates than Certificates.

Dividend Rates

Certificate: Certificates typically offer higher dividends compared to Money Markets. Once you choose the Certificate term you want, your rate is locked in for the entire duration.

Money Market: Their dividend rates are generally competitive but can fluctuate based on market conditions. They may not be as high as the rates offered by Certificates.

Access to Funds

Certificate: With a Certificate, you have limited access to your money until the term matures. If you need to withdraw your funds before the maturity date, you may face early withdrawal penalties.

Money Market: With a Money Market, you can make withdrawals and transfers without a fixed term or penalties. This can make it an ideal option for an emergency fund.

Minimum Deposit

Certificate: The minimum deposit varies at different financial institutions, but at Launch, we require a minimum of $1,000 to open a certificate.

Money Market: At Launch, our minimum opening deposit rate is $2,500.

Choosing Between Certificates and Money Markets

The choice between a Certificate and a Money Market Account depends on your financial goals, risk tolerance, and the need for access to your funds. Here are some factors to consider:

Emergency Funds: If you need to maintain a readily accessible emergency fund, a Money Market may be more suitable due to its liquidity.

Long-Term Savings: If you have a sum of money you can lock away for a specific period without needing access to it, Certificates can offer higher dividend rates and help your money grow over time.

Risk Tolerance: Certificates are more predictable and low-risk, while Money Markets offer more flexibility but with potentially variable dividend rates. Assess your risk tolerance when making a choice.