My parents have a small nest egg that has been percolating in a nice Washington Mutual CD for the last year. It was bought up by Chase Bank but it kept it's 4% interest rate. Now it is ready to roll over and CD rates are dismal. Using bankrate's CD finder I found that GMAC bank has the best rate right now. That's not surprising. GM is on the verge of bankruptcy so they want as much cash as they can get. Don't worry though, it is FDIC insured and if they do go bankrupt someone will buy the bank, I'm sure, at least they'll buy the assets. Just like Chase did with WaMu. Here's the list of rates as of 4/22/09. OCCU is my credit union. I thought I would include them for comparison. They used to be competitive. In fact I have a CD with them that comes out in September. I'll definitely be moving it somewhere else.
GMAC: 3m-1.75%, 6m-2.25%, 9m-2.3%, 12m-2.75%, 2y-2.9%, 3y-3.2%
Discover: 3m-1.25%, 6m-1.75%, 9m-1.9%, 12m-2.35%, 2y-2.72%, 3y-3.06%
Chase: 9m-1.5%, 12m-1.75%
OCCU: 6m-1.2%, 12m-1.5%
I suggested that my mom split her money in to 3 or 4 CDs for different lengths, that way she will have money available for bills or other projects and if she finds a higher CD rate some time in the (hopefully near) future her money won't be tied up for a long time.
I have $2,000 of my emergency fund that needs a safe place to grow. It has been padding my checking account but next month I should have enough padding so it will be safe to put that money in a 3 month CD.
Remember when CD rates were at 5%? It seems like so long ago. I am very glad I decided to pay down my mortgage instead of saving the money in short term investments. It is much more motivating and fun to see my mortgage disappear.