Where to Invest Certificate of Deposits or Money Market

What is certificate of Deposits? Money deposited in a bank or savings and loan for a stated time period and normally paying a fixed rate of interest.

These are debt instruments issued by banks and other financial institutions to investors. In exchange for lending the institution money for a predetermined length of time, the investor is paid a set rate of interest. Maturities on certificates of deposit can range from only a few weeks to several years with the interest rate earned by the investor increasing in proportion to the time his capital is tied up in the investment.
Advantage of certificate of deposit is investor can calculate his or her expected earnings at the outset of the investment. On the other hand the money might be locked for a larger duration and other better avenue to get higher return will be lost.
A money market is more or less a mutual fund that attempts to keep its share price at a constant Face Value say $1. Professional money managers will take the funds deposited in the money market and invest them in government t-bills, savings bonds, certificates of deposit, and other safe and conservative financial instruments. This income is then paid out to the owners of the money market.

In case of Money Market Investment; depositing money in a money market is as easy as depositing cash into a savings or checking account. Cash is immediately available for alternative investments. Money markets are disproportionately beneficial to wealthier investors.