Despite the recent decline in interest rates across all bank deposit products, certificates of deposit still offer a pretty good value compared to other savings options. Whether you look for a no-penalty CD, like one you’d find at Ally Bank, or just a traditional CD with a higher rate, saving with a CD beats putting your money in a checking account earning 0.01% (if anything!).

Where can you find the best bank CD rates? I maintain an updated list of all competitively rated CDs for maturity yields of less than 24 months (2 years). I typically don’t put my savings into a CD for more than two years because interest rates are usually on the unpredictable side, at least when you go out that far.

One thing to consider is that with a CD your principal is FDIC insured and protected from loss, but they are not without risk. If you’re earning 2% on a CD and inflation is 3%, you’re actually losing 1% each year. Of course, in a 0% checking account, you’re losing 3%. CDs are simply the better of several evils.

The interest rates on high yield savings accounts is plummeting, with many banks now offering below 3% APY! The lone leader of the high yield savings account wars is still Dollar Savings Direct, with a yield of 4.00% APY.

The best way to guarantee a solid return on your saving is to lock it into a CD. The best CD rates are now all under 4% with Dollar Savings Direct recently falling from 4.0% APY on their 16-month CD to a more average 3.50% APY. A regular savings account does not guarantee the rate, only CDs do.

WaMu is gone and so is its 5% CD, click here for the Best CD rates.

Washington Mutual has once again brought back it’s 5.0% APY Online CD offer for 12 and 13 month periods and if it’s like last time, this offer isn’t going to last for a very long time. To take advantage, it’s recommended taht you open their free checking and savings account currently offering a fat 4.0% APY (the best among all the best savings accounts). It’s not a requirement but it will maximize your interest because the CDs can be dropped into your savings account rather than transferring out to a lower yielding bank.

For more information, check out the 12-month CD rates at WaMu.

Washington Mutual is offering a 5% APY interest rate on the 12-month CDs for a limited time. There have been rumblings about them potentially going into the conservatorship of the FDIC but your money is safe even if that happens.

If you also have a WaMu high yield checking/savings account, this deal is a good one if you won’t need the funds for 12 months. The early withdrawal penalty is 90 days interest, you can open the account entirely online, fund it online, and has only a $1,000 minimum.

Washington Mutual recently increased their one-year (and 13 month) Certificate of Deposit rates to 4.50% APY, which appears to be in lock-step with their 3.75% APY online savings account. WaMu has been in the news lately for liquidity issues, an acute problem that brought down other banks recently, but they are FDIC insured up to the standard $100,000 so you won’t have to worry about losing anything.

Hat tip to Bank Deals!

If you have been thinking about laddering CDs, whether it’s just for your savings or if it’s for an emergency fund, here’s a pretty straightforward CD laddering tutorial detailing all the specifics of doing so.

Don’t get hung up on the rates of return or the use of ING Direct as the example, you can buy CDs from any bank or from multiple banks. ING Direct was simply used because it’s easy to get to their rates of return and they have great CD laddering online features.