For those that think the 3% APY CD is long gone, there are still a few credit unions offering rates near 3.00%. El Paso Area Teachers FCU is one, offering a five year cd that is paying 2.98% APY.

That's not bad when you consider the alternatives. Ten year Treasuries yield just 1.91% and ten year municipal bonds pay just 1.86%. There are some high yield corporate bonds that pay more, but risk increases along with the higher payout. In fact all bonds - Treasury, Municipal, and Corporate have some degree of risk.

Because money deposited in El Paso Area Teachers is NCUA insured (FDIC like insurance for credit unions), the risk of losing money below NCUA insurance limits is virtually 0%. That means you get a rate higher than Treasuries, Municipals, and many Corporate Bonds with none of the risk.

CD Details

To receive the 2.98% APY rate from El Paso Teachers, you must deposit a minimum of $50,000 into the CD. If you don't want to deposit that much cash, then you can still get the very competitive rate of 2.88% APY with a $500 minimum balance.

Membership to El Paso Area Teachers FCU is restricted to individuals and family members who live or work in El Paso County. Most credit unions restrict membership to a certain geography or organization.

Accounts can be opened at one of the eight branches the credit union operates in El Paso Country.

About El Paso Teachers FCU

El Paso Area Teachers FCU is a relatively large credit union with $447 million in assets. The credit union is NCUA insured and has a low Texas Ratio of 1.67% versus a national average of 10.34% (lower is better - a lower Texas ratio means the bank has less fewer delinquent loans on its books versus its overall capital).

If you don't live in El Paso Country, don't despair. In our database, I found 16 banks offering a 60 month CD for over 2.75% APY. Find the best CD rate in your local area. Remember, don't settle for average rates on your money.

Previous Weekly Rate Spotlights

• February 21, 2012 - Cardinal Bank Offering 2.01% APY First Choice Checking
• February 13, 2012 - Citizens State Bank Offering 4.00% APY Variable IRA
• February 6, 2012 - Liberty Bank & Trust Offering 1.31% APY Savings Account Rate
• January 30, 2012 - WYMAR Federal Credit Union Offering 2.27% APY 24-Month CD
• January 23- 2012 - Frederica Credit Union Offering 1.65% APY 12-Month CD - Open to All
• January 17, 2012 - Western Heritage Bank Offering 2-Year CD Paying 1.75% APY
• January 9, 2012 - Navy Federal Credit Union Offering 3.00% APY 20-Month IRA CD
• January 5, 2012 - Consumers Credit Union Offers 4.09% APY Rewards Checking Account - Nationally Available

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Riverside Bank based in Poughkeepsie, NY is offering a 1.51% APY 24 month CD. That's one of the best cd rates for this term in New York state. The CDs require a minimum deposit of $2,500 and automatically renew unless the bank is notified otherwise before the term expires.

Riverside Bank has four branches in Poughkeepsie, Fishkill (like the name of that town), and Newburgh. The bank's financials look pretty good. It's Texas Ratio is 12.34% versus the national average of 20.28% (the lower the Texas Ratio the better). Assets have grown from $156 million in 2006 to $184 million in 2011. The bank was founded in 1988.

Riverside is publicly owned with an empasis on providing service within a limited market area to small and medium sized businesses, professionals and individuals.

Don't live near Riverside? Find the best CD rates in your local area.

• Receive free weekly rate updates on the best bank rates in New York State. Easily keep up with the best rates offered by banks in New York State, or any other state with our free BestCashCow rate updates. Learn More.

Fixed Rate Individual Retirement Accounts (also called CD IRAs) are certificates of deposit held within a traditional Individual Retirement Account (IRA) or a Roth IRA. As a result, any interest on the certificate of deposit accumulates according to the tax advantages of the IRA. In a traditional IRA, pre-tax income is deposited into the account where it accumulates until retirement age. At that point, when the money is withdrawn, the user is taxed at their prevailing tax rate.

In a Roth IRA, the user invests post-tax money and the funds are allowed to grow and be withdrawn at some future date tax free.

Fixed Rate investments can reside in either a Traditional or Roth IRA.

How to Open a Fixed Rate IRA

Many banks offer Fixed Rate IRAs. The bank can help the individual open the IRA. It is not a difficult process and is similar to opening a bank account. Once the FIRA's term ends, the money can be rolled over into a new FIRA (just like a CD), moved into another investment like stocks, bonds, mutual funds, etc., or withdrawn. If the money is withdrawn before the age of 59 and 1/2, then the IRS levies a 10% penalty charge on the amount withdrawn, on top of any taxes owed. There are two caveats to this penalty: paying for education, and buying a home.

Paying for Education

FIRA money can be withdrawn penalty free if the funds are used for education expenses from a qualifying institution. The funds can be used for the holder, a spouse, kids, or grandchildren. The institution must be approved by the IRS. Qualifying institutions include private, public, and vocations schools and expenses include tuition, books, and room and board.

Buying a First House

The IRS also allows FIRA money to be withdrawn penalty free if the funds are used to purchase a first house. An individual can pull out $20,000 towards a first time home. If a husband and wife purchase a home together, then the total could be as high as $40,000. And the funds can also be used to help children buy a home so a family with a father, mother, son, and daughter-in-law could potentially pull out $80,000 combined tax free from their individual accounts.

The IRS is also a bit flexible with the term first time homebuyer. As long as the buyer doesn't currently own a house, and hasn't owned one in the prior two years, they are considered first time homebuyers.

Roth IRAs treat homebuying slightly differently. After fiver years, you can withdraw the money tax free as a qualified distribution.

Advantages to a FIRA

There are several advantages to a FIRA:

• Money grows in a tax-advantaged way.
• Funds are FDIC insured, just like a regular CD.
• Interest rates on FIRAs are often higher than the same terms for a CD.
• Some flexibility in withdrawing the money early for first time homebuyers and education expenses.

Disadvantages to a FIRA

• Returns may not be as high as stocks, bonds, mutual funds.
• Funds cannot be withdrawn until 59 1/2 without penalty (except for IRS approved expenses).
• If interest rates rise during the term of the FIRA, money will be stuck in lower yielding account.

FIRAs are a great addition to any portfolio. They provide a tax-advantaged way to conservatively grow savings and prepare for retirement, college, or buying a home.

Find the best rates on a Fixed Rate IRA in your local area.