Could Your Savings Be Earning More? A Guide to CDs and Money Market Accounts

Reprint from Minnesota Star Tribune July 29, 2026

Fortunately, there are high-earning savings accounts available that can help do exactly that. Unfortunately, many people either aren’t aware of them or are reluctant to use them because they seem complicated. Jesse Schmidt, Regional Branch Manager at Associated Healthcare Credit Union (AHCU), has made it one of his missions to help people understand the value and opportunity offered by these higher-earning savings options – and just how accessible they are.

“So many of our members are good savers,” he says. “They’re doing the right things. But those funds are just going to sit there. We should try to make more money on your money.”

Most traditional savings accounts offer very low interest earnings, usually just a fraction of a percent over the course of a year. Certificates of deposit (CDs) and money market accounts – the most common and safest higher-earning savings options– offer significantly more, sometimes 40 or 50 times the interest rate depending on the terms, and may fit well into a saver’s plan.

With over 15 years of banking experience, Schmidt has learned to recognize when members are good candidates for these options. He sees his role as being an educator, guide and helper, which reflects the mission of AHCU as well.

AHCU was built around the idea that the people who care for others deserve someone looking out for them, too. Founded to serve the healthcare community — nurses, technicians, caregivers, and others who keep hospitals and health systems running — the credit union operates as a not-for-profit, which means it returns value directly to its members in the form of better rates, lower fees, features geared to health workers (like locations within hospitals), and personal guidance. For healthcare professionals juggling long shifts and little spare time, that kind of support matters.

“Our members give so much to their patients,” Schmidt says. “We want to give back by making their money work as hard as they do.”

When it comes to making savings grow, Schmidt often steers the conversation toward certificates of deposit (CDs) and money market accounts. Both outperform a standard savings account. The difference lies in how and when a saver can access the money, and in the potential earnings.

Certificates of Deposit (CDs)

A CD is built for patience. You deposit a set amount, agree to leave it alone for a fixed term from a few months to several years, and in return, you earn a guaranteed, higher interest rate.

Pros:

• CDs typically offer the highest guaranteed rates
• Your rate is locked in for the full term
• They are simple and very safe

Cons:

• Funds are not accessible until the term ends
• Early withdrawal usually comes with a penalty

Best for: Money you won’t need soon such as a future down payment, a planned purchase, or savings you want to grow untouched.

“It can be as easy as a 10-minute process,” Schmidt says. “You sign one form, we move the money, and from that day on you start accruing those new interest rates.”

Money Market Accounts

A money market account offers a higher interest rate with flexibility. You earn more than a standard savings account (although often less than a CD), but your money stays within reach.

Pros:

• Interest rates are often tiered – the more you have in the account, the more you earn
• Funds remain accessible when you need them
• They often include check-writing or debit access

Cons:

• Rates can shift over time rather than staying fixed
• They may require maintaining a minimum balance

Best for: Emergency funds or shorter-term savings where access matters as much as growth.

The choice between the two often comes down to a single question: What is the purpose of this money? Schmidt puts it this way: “Do you want your money tucked away, guaranteed to be exactly what you thought it would be? Or do you want the flexibility to access it whenever you need it?”

It’s important to remember that a person can do both: move a portion to a CD while keeping the rest in a money market or even traditional savings.

Schmidt recalled one member who had been diligently putting money aside for 20 years for her daughter and came in to move the funds.

“The difference between essentially no interest and 2.25 percent over 20 years is huge,” he notes. The opportunity to earn that may have been missed in this case, but it presented an opportunity for the daughter: “Part of it went to pay for college, and we put a good portion into a CD,” he said. “We set up a plan with rolling CDs so every six months, some part of it is coming to term and accessible.”

The experience reminded Schmidt to have regular conversations with members about their plans so he can help them make the best choices. Regular savers who rarely withdraw are good candidates; so are people who come into a windfall and don’t yet have a plan.

“The most important thing isn’t chasing the highest interest rate, it’s to have a plan that works for you,” Schmidt said. “The best advice is to choose a savings strategy you can maintain and make sure every dollar is put to its best use. With higher-earning savings accounts, even small deposits will benefit people over time.”

For the healthcare workers who make up AHCU’s community, that kind of guidance is often the most valuable thing the credit union provides.

“I trust them to take care of me health-wise,” Schmidt says, “and I’m glad that they trust us to take care of them financially.”

Our team can help you determine whether a CD, money market account, or another savings option is right for you. Call (651) 383-4000 or schedule an appointment to meet with our team in-person or virtually at your convenience.

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