CD investment: at least some new style!

Our readers were advised last month 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 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.

Indymac bank usually has high rate for CDs. Nowadays they are offering
what they call "Raise your Rate Certificate of Deposit" which allows a
one-time rate increase anytime during the term without extending the
maturity date. This allows you flexibility in the event rates increase.
Minimum deposit is 5000$ and 1 year period.

A foreign bank here in New York, The State Bank of India (NY Branch)
is offering what is called Float CD. If you have lot of cash (of the order of
100000$ - 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.

Float CD deposits 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. It's FDIC insured and the current rate is 1.75%
above the FFR (2.5%), OR, 4.25% for 3 year deposit.