Take a look at the national averages of CD (certificate of deposit) rates. Right now, there is hardly more than a 0.10% increase in yields between a 1 year CD and a 3 year CD.

That’s 2 full years of additional financial commitment with hardly little reward. Personally, I wouldn’t get involved in any CD with a term greater than 6 months. Here’s why.

First off, we are in the midst of a (needless to say) unpredictable economic time. Large, excuse me, “TOO LARGE to fail” companies are going under on a weekly basis, while other companies, which have been around since Roosevelt, are begging uncle Sam to bail them out. While this worries passive investors, I believe it thoroughly excites the savvy ones.

So where can people invest today – to not only keep their money secure while receiving decent rates, but to also have it available when other, more attractive, investments present themselves once again?

I would consider a 6 month CD. Not only is your money FDIC insured with a 6 month CD, but you can also still find decent 6 month CD rates if you know where to look. Right now the national average rate for 6 month CDs is less than 2.5%.

Here are a couple of banks offering rates well above the national average:

State Bank of India: 6 month CD 4.25%

Imperial Capitol: 6 month CD 3.95%

I’m quite sure there are many more banks offering above average rates if you look hard enough. If anyone spots one offering a higher rate than 4% please share.

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