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So after working hard at the job only to have Uncle Sam take nearly half of your gross income, you have finally managed to save a substantial amount of money. You have enough to put aside for awhile, but aren’t quite ready for the big stock market move. So what should you do with it now? Well, you could leave it in a savings account at a bank, which hopefully will yield at least 5% interest. Or you could try for a bigger return with a Certificate of Deposit or a Money Market account.

Certificates of deposit (or CDs for short) 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.

Pros: CDs are FDIC insured for up to $100,000 and you can calculate your expected earnings at the outset of the investment.

Cons: If you opt for a longer maturity and, thus, higher rate of interest, you will lose access to your funds and forgo alternative uses of your capital.

Money markets, on the other hand, offer many of the same benefits as CDs with the added features of a checking account. Technically, a money market is more or less a mutual fund that attempts to keep its share price at a constant $1. Professional money managers will take the funds deposited in the money market and invest them in government t-bills, savings bonds, CDs, and other safe and conservative financial instruments. This income is then paid out to the owners of the money market.You can open a money market account at most financial institutions. You generally receive a checkbook and use the account like you would a checking account.

Pros: 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.

Cons: Some financial institutions place a limit on the number of checks that can be drawn against the account in any given month. The rate of interest is directly proportional to your level of deposited assets, not to maturity as is the case with CDs. Hence, money markets are disproportionately beneficial to wealthier investors.

So which is better? Although both can be useful, for those who need access to their capital, money markets are far superior. For more financial tips, check out the many helpful articles on CNNMoney.