Float CD !

No! By Float CD we do not mean those new music CDs that you may be crazy for!

We are merely trying to give advice to you ... if you have lot of cash (may
be from a home sale, or may be in a retirement account) and you do not
wish to put this into any amount of risk for quite sometime ... then this
idea of float Deposit may be good for you.

Our readers were advised lately that it is better not to purchase CDs for a
time-period of more than 6 months. The reason is simple: Fed will continue
to increase the interest rate in coming months and so CD rates will also
follow that and so it's better not to block your money with current rate
which may turn out to be too low within a few months.

Float CD deposits, on the other hand, are tied to the Federal Fund Rate
(FFR). The interest rate is not fixed and .. As Federal rate increases so
does the rate for your deposit.

One Foreign Bank here in New York is offering that - probably targetting
either rich or retired (or both!) investors. The bank is State Bank of India
(New York Branch) www.statebank.com/cd.asp It's FDIC insured and the
current rate is 1.75% above the FFR (2.5%), OR, 4.25% for 3 year deposit.
Minimum is 100 thousand (We told you it's not for everyone!).

We'll search for more such good offers and let you know.