Marino's last point should sound a warning in the ears of every potential CD purchaser. You will be hard pressed to find an economist who is not predicting huge jumps in the CPI, possibly even hyperinflation as soon as the economy starts a true, measurable recovery. We can't escape it with the debt this nation is amassing. With CD rates as low as they are right now, it would be wise to limit any CD purchase to a term of one year. The return will stink, but you'll likely be able to reinvest in a year at a higher rate. Those of us who recall the period of '76-'80 can assure you that you don't want to be locked into a long-term CD when rates take off. (Jan 21, 1976 Prime Rate = 6.75%....Dec 19, 1980 Prime Rate = 21.50%.)