Both these types of investment accounts offer advantages and benefits depending on what you plan to do with the money and what you want to achieve. Here are a few points to consider when choosing which account is best for you:

• Opening Deposit: A Certificate has a minimum deposit of just $500 while you need $10,000 to open a Money Market Account.
• Ongoing Deposits: You can’t add funds to a Certificate after you open the account but you can keep adding funds to a Money Market account at any time.
• Access to Funds: You can’t access your Certificate funds until your term ends while you can make up to six withdrawals from a Money Market account each month.
• Rates: Most Certificate terms offer higher rates than a Money Market Account though you can earn higher rates with a Money Market Account if your balance is over $100,000.
• Incentive to Save: Both accounts are designed to encourage you to achieve your goals because of their unique tiered-rate structure for longer terms or higher balances.

You can choose to open an individual retirement account (IRA) Certificate. The idea is that your funds are continually reinvested in Certificates until you reach at least 59 ½ or until you reach retirement.

• You will usually choose the longest term available so you get the highest rates.
• You want to check current rates each time your term ends because there may be special rates on offer for specific terms.
• You can choose from Traditional IRA or Roth IRA Certificates, which are tax-advantaged accounts that you can usually open in addition to or instead of a 401(k) plan or similar workplace account.
• A Traditional IRA offers tax deductions on contributions then you pay income taxes on withdrawals, while a Roth IRA has no deductions on contributions but then you get tax-free withdrawals.
• Another type of IRA is a Coverdell Education Savings Account, which helps you save for your child or beneficiary’s education expenses.

A Money Market Account has similarities and differences with some of our other savings and investment tools. Here’s what you need to know:

• You can earn higher interest rates than regular savings if your balance is over $10,000.
• Like a savings account, you can keep adding funds whenever you want.
• You don’t need to leave your funds untouched for a term, as for a Certificate.
• You may make up to six withdrawals per month by the approved methods.
• You may earn interest at higher or lower rates than a Certificate.
• The National Credit Union Administration (NCUA) insures funds up to $250,000.

Note that the minimum balance required to open an account is $10,000 and you need to maintain that balance to earn higher rates than a regular savings or deposit account.

A checking account is a better option if you plan to regularly withdraw, but a Money Market account does let you withdraw funds provided you follow a few simple guidelines:

• No more than six (6) preauthorized, automatic, or telephone transfers may be made from the account to another account or a third party in any month.
• No more than three (3) of these six (6) transfers may be made by writing checks or drafts to a third party.

Legacy Credit Union is a full-service financial institution and you can add funds using any method that suits you:

• In person at one of our branches in Birmingham, Alabama
• Transfer using Online and Mobile Banking
• Direct deposit
• Payroll deduction