Ascencia Bank took the #1 spot on the BestCashCow 6 month CD rate table with a rate of 4.07% APY. As of September 24, 2008, the rate is just below the best rates offered.

Ascencia has operated since 1996 and is a division of PBI Bank or Porter Bankcorp. Bauer financial rates PBI Bank with 3 stars out of 5 for its soundness. Deposits at the bank are FDIC insured up to the $100,000 limit per person.

When applying, you will have to print out the application and mail it in or ask them to mail you an application. While there is no instant account opening, funds may be transferred via ACH transfer from another bank after the application is received.

Ascencia also offers competitive 1 year, 2 year, and 3 year Certificates of Deposit.

It started about a month ago with Wachovia when it started offering very competitive Featured CDs. These were suppose to end last week, but they've been extended. Last week Bank of America came out with a very high yield on its 7-month High Yield Online CDs. WaMu is the latest one to offer high CD rates, and it currently has the best deal for a CD term under one year. Below is a summary of these special CDs as of 7/21/08:

• 4.11% APY 7-Month CD @ Bank of America (account review)
• 4.00% APY 6-Month / 4.25% APY 12-Month CD @ Wachovia (account review)
• 4.25% APY 8-Month / 12-Month CD @ Washington Mutual (account review)

When the Fed was cutting rates like crazy earlier this year, I thought we wouldn't see 4% CDs again for some time. But perhaps with increased expectations of higher inflation and future rate hikes along with the banks' need to raise capital (see this BestCashCow article), we're seeing these CD deals. If this continues, it won't be long before we'll see the return of the 5% short-term CD.

It is quite amazing how market psychology can turn on a dime, but it did with the employment numbers today. Every analyst on CNBC now says that "the picture has darkened considerably."

In a global recession, the stock market will be a bad place to be so it is a bad time to put new money to work. So where can you put your cash.

It becomes clear that the Federal reserve will now lower interest rates, maybe multiple times or maybe one large cut. If you believe that the recession will be pronounced, then you buy long term Treasuries, but I believe that this will be very short-lived. Therefore, I am looking for a place to put my money where it will continue to earn interest that keeps the money at a pace with inflation.

Savings accounts will have falling yields as will money market funds. Therefore, it is important to lock down some nice rates for a short period.

The 1, 2 and 3 year CD rates on BestCashCow.com seem amazingly attractive at the moment. I recognize, however, that these rates are being offered by institutions like Countrywide and E-Loan because they are the lowest cost of funding their mortgages (they lack liquidity) and that these companies are also in jeopardy. While it is important to chase yield, it is important not to be foolish and risk enormous life-changing losses. Therefore, I am being very careful to keep keep my deposits below FDIC limits - spreading my money across several online banks listed here and setting up every account as a joint account with my wife in order to raise FDIC limits to $200,000 (as long as neither of us have other accounts with these banks and neither of us do).