When you’ve worked hard for your nest egg, the last thing you want is to put it at unnecessary risk. That’s why many retirees, especially those here in our warm and welcoming Sun City and Sun City West community, are turning to safer, interest-bearing options like Certificates of Deposit (CDs) and Money Market Accounts (MMAs) to grow their savings while staying secure.

Whether you’re retired or just starting to prepare, here’s everything you need to know about how these accounts work, how they compare, and how they can help protect and grow your retirement savings.

Table Of Contents

What Are CDs And Money Market Accounts?

If you’re looking to boost your savings with less risk, both of these tools can be a smart addition to your financial strategy.

Certificates Of Deposit (CDs)

  • A CD is a type of savings account that holds your money for a fixed period — anywhere from a few months to several years.
  • In exchange for leaving a certain amount on deposit for a set period of time, you get a guaranteed interest rate, often higher than a regular savings account.
  • You’ll face a penalty if you withdraw early, so it’s best to utilize for money you won’t need right away.

Special Offer For Arizona Residents

4.04% APY1 | 13-Month CD Special

Ready to make your money work harder? Our limited-time CD special is designed with you in mind.

  • Lock in a competitive 4.04% APY for 13 months
  • Enjoy the security of a fixed-rate at an FDIC insured institution.
  • Available for a limited time only

Click Here To Learn More & View Full Terms And Conditions

As your local bank in Sun City and Sun City West, we’re proud to offer rates that reward smart savers like you. Stop by or give us a call at 855-423-4602 to open your CD today.

Money Market Accounts (MMAs)

  • Sun Canyon Bank Money Market Accounts offer a blend of features: Higher interest than standard savings and limited access like a checking account.
  • You can usually make a few withdrawals or write checks each month.
  • They’re ideal for keeping money accessible while still earning competitive interest.

Why Retirees Love These Accounts

Life in a retirement community in Arizona, like Sun City and Sun City West, often comes with a desire for stability, simplicity, and smart financial choices. CDs and MMAs check all the boxes:

  • Low Risk: Both options are FDIC-insured up to the applicable limits, meaning your money is protected.
  • Better Interest: You’ll typically earn more than a standard savings account.
  • Great For Fixed Income: These accounts provide predictable returns — especially helpful if you’re budgeting in retirement.
  • Flexible Use: Whether you want to tuck money away or keep it on hand, you can use one or both based on your needs.

CDs Vs. Money Market Accounts: Which Is Right For You?

Choosing between a CD and a money market account depends on how you plan to use your money. Here’s a quick comparison:

Feature

CD (Certificate of Deposit)

Money Market Account3

Interest Rate (APY)

Fixed—often higher (e.g., 4% for 12 months)

Variable—currently around 2.5%–3% depending on balance

Access to Funds

Not accessible until maturity (early withdrawal penalty2)

Easy access, limited monthly transactions

Best For

Great when you won’t need the money soon

Ideal for emergency funds and flexibility

FDIC Insured

Yes—up to $250K per depositor, per ownership category

Yes—up to $250K per depositor, per ownership category

Minimum Balance Requirement

Often higher minimums

Moderate minimums

Check Writing Privileges

No

Yes, limited check-writing

How To Choose The Right Option For You

  • Locked in and earning more? Consider a CD
  • Need easy access and flexibility? Choose a Money Market Account
  • Not sure which? Split your funds into both for balance

Tips For Arizona Retirees Choosing CDs Or MMAs

We live in a unique part of the country and that impacts how you should manage your money. Here are a few local-savvy suggestions:

  • Shop Local Rates: Community banks like Sun Canyon Bank often offer better rates than big national chains.
  • Consider Taxes: Arizona has a retiree-friendly tax climate — but consult your advisor to see how interest income applies.
  • Balance Yield And Access: You may not need all your cash at once, but it helps to keep some liquid.
  • Avoid Account Fees: We offer options with no or low minimums, especially for our senior clients.

Three Smart Ways To Use CDs And Money Market Accounts In Retirement

You don’t have to pick just one. Many retirees use a combination of both to create a well-rounded savings plan. Here’s how:

1. Build A CD Ladder

A CD ladder involves opening multiple CDs with staggered maturity dates (e.g., six months, one year, two years). As each one matures, you can reinvest or access the funds — giving you regular liquidity without sacrificing long-term interest.

2. Keep Your Emergency Fund In A Money Market Account

MMAs are perfect for rainy day funds. You’ll earn more interest than a regular savings account, but still have access if the unexpected happens, like your A/C unit breaking in the middle of summer.

3. Supplement Other Retirement Income

Use CDs and MMAs alongside Social Security, pensions, or investment income to keep your savings diversified, secure and accessible.

Frequently Asked Questions (FAQs)

Q: Can I Open Multiple CDs At Different Terms?

A: Yes. It’s called a “ladder” and helps balance interest and access.

Q: What If I Need Money Before A CD Matures?

A: You’ll likely pay a penalty equivalent to several months’ interest. An MMA is better for emergency withdrawal.

Q: Do I Pay Taxes On The Interest?

A: Yes. APY is taxed as income, and you’ll receive a Form 1099-INT each year.

Q: Are Accounts At Sun Canyon Bank Insured?

A: Absolutely, both CDs and MMAs are FDIC-insured up to $250,000 per depositor, per ownership category.

Q: After My CD Matures, Can I Move Money Anytime?

A: Yes. You decide whether to roll into a new CD, keep it in your MMA, or transfer it to checking.

Glossary Of Key Terms

  • APY (Annual Percentage Yield): True yearly interest with compounding
  • Liquidity: How quickly you can access your money
  • FDIC-Insured: Your deposits are insured up to $250K per depositor, per ownership category
  • CD Ladder: Multiple CDs set to mature at different times
  • Early Withdrawal Penalty: A fee for withdrawing from a CD before maturity

Helpful Resources

Why Retirees Trust Sun Canyon Bank

As your neighbors here in Sun City and Sun City West, we understand what matters most in retirement. Whether you’re managing day-to-day expenses or planning ahead for the next big golf trip, we’re here to help you make smart, stress-free financial decisions.

  • Friendly, Local Service: (855)423-4602— Local banking experts ready to help.
  • Tailored Savings Solutions: CDs and MMAs designed with retirees in mind.
  • Competitive Rates And Flexible Terms: Because your money should work just as hard as you did.

Let’s Grow Your Savings Together

Your retirement savings should bring you peace of mind, not confusion or risk. With the right combination of CDs and money market accounts, you can stay financially comfortable while still earning more.

Ready To Get Started?

Stop by our branch in Sun City and Sun City West or give us a call to explore your options. We’ll help you choose the account that fits your lifestyle and goals.

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Disclosures
1Advertised Annual Percentage Yield (APY) accurate as of July 8, 2025. A minimum deposit of $5,000 is required to open and earn stated APY. 
2Penalty for early withdrawal on CDs. CD is automatically renewed for the same term at the interest rate available at the time. 
3Minimum of $2,500 to open account and earn interest. Tiers for Sun Canyon Gold Money Market include $2,500 -$99,999.99; $100,000+. Money market rates are subject to change, fees may reduce earnings. Withdrawal limitations apply.