Understanding the mediums for risk-less investments, means understanding the various products banking institutions sell. A bank is a business just like the local coffee shop, electronics store, university, or hospital. Banks offer checking and savings accounts, money market deposit accounts, certificate of deposits (CD) and many other products.

The practice of CD laddering maximizes the use of the varying interest rates and maximizes liquidity. This practice is implemented by putting a like dollar amount into a series of CDs each maturing in intermediate intervals, i.e. a 6-, 12- and 18- month or a 1-, 2- and 3-year. Once this initial CD has matured, that may be reinvested in the greatest length term of the investment chain. If the chain follows a 6 month pattern, once the initial 6-month CD matures, that would be reinvested in an 18-month CD, similar with a 1-year chain – reinvested in a 3- or 5-year CD.

Franklin Synergy Bank is offering a 2.10% APY 12-Month CD. That's currently the best 1 year cd rate according to the BestCashCow rate tables. We've had this listed on the rate tables for some time but haven't really called out the offer. The eCD as its called has a minimum investment of $1,000 and a maximum investment of $99,000 for each individual CD. Customers can open multiple CDs up to $500,000 per person.

I called and confirmed that accounts can only be opened online and are available nationally. Once the application is completed, you'll have to print and send back a signature card along with two forms of identification. Funding can be done via check or wire transfer. The rate locks when the application is received and the CD starts the day the funds are received.

Franklin Synergy Bank is a relatively new bank, started in 2007. The bank is located in Franklin, TN. As a result, it does not yet have a Bauer rating, It is FDIC insured. As of Sept 30, 2009, the bank had $237 million in assets, up from $131 million the year before.

Please share any experiences or questions regarding Franklin Synergy Bank below.

CD rates and products come in many different shapes and sizes. There are traditional CDs, in which you make a one-time investment for a fixed period of time, and now there are an increasing number of liquid or hybrid CDs. These products generally allow users to withdraw cash penalty-free at some point, or to deposit more cash at the original fixed rate.

OneWest Bank has two CD products that cover both of these angles - the Raise Your Rate CD and the Keep Your Options Open CD.

Raise Your Rate CD

The Raise Your Rate CD pays 1.5% APY for a 12-month CD. That's a competitive rate. But at anytime during the period you can opt to raise the rate to what the bank is offering new customers. If you believe rates are going significantly higher over the next 12 months (we don't think they are) then this might be a good CD to open.

Keep Your Options Open CD

The Keep Your Options Open CD, like the Raise Your Rate CD allows you to raise the rate one time in its 12-month term. But it also allows you to make two penalty free withdrawals during the term also. In return for this flexibility, it pays a lower opening rate - 1.4% APY.

So are these good deals? The top 12-month CD rate is currently 2% APY. The best savings and money market rates are near 1.95% APY (excluding SmartyPig and the bonus from Everbank). Our savings and cd rate trends show that while rates are still trending down, the slope has become very gradual. It's unlikely the best savings rates will fall below 1.5% in the next 12 months. In addition, Bank of America is offering a totally liquid money market savings account that pays 1.5% APY fixed until April 2010. These are all options to consider.