CD investment update

It is the same story that is going on for a year or so. The short-term yields
continued to benefit from hikes in Federal Reserve's rate, whereas the
longer term yields remained as sluggish as cow by the economy's trouble
spots. With more possible rate hikes in line, it is a wise policy not to lock in
your cash in long-term CDs.

Short-term CDs, especially with 6-month maturities seem to be the best
opportunity to take advantage of rising yields. If you donot even want to
lock in your money, you may still enjoy a good 3.50% APY by putting it in
NY-based bank Emigrant-Direct by simply opening a savings account. No
minimum deposit is necessary. The Ing-direct bank also offers similar
account but with 3.15% APY.

If you will still consider a 1-year CD, the 'Raise Your Rate' CD offered by
IndyMac Bank could be a good choice. You need to put minimum $5000
and the yield is 4.10% APY. Advantage is: They allow One-time rate
increase feature which may be exercised by you at any time during the
term whenever you feel it is prudent to do so. The entire balance will begin
earning the higher rate (available at that time) from the day following your
request. The original maturity date will remain unchanged.