Released: September 16, 2007

CDs, for a return guarantee

Source: Elizabeth Razzi, Washington Post (Free Registration)

Sometimes boring is beautiful.

With the stock market whipping investors along gut-wrenching swings of 200 points or more in a day, the steady-as-she-goes FDIC-insured certificate of deposit has lately become an attractive shelter.

For Lisa Bend, the time to act came when she kept seeing reports that the Federal Reserve may soon lower interest rates, which could cause CD rates to drop. Wanting to lock in a good rate, Bend, 43, recently put a portion of her retirement savings into nine- and 12-month CDs from Internet bank ING Direct. She got an annual percentage yield, or APY, of 5.25.

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