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maybe an intoductory rate that high, but not for a year, still doubt it-

Money markets are still around 0.02% on average. Some bond funds I use are paying 4.5 - 5% tax free.

3 yr CD's do pay around 3% and if you go 5 yr you can get about 4%. But I really don't recommend going out that long in this interest rate environment. Stay short, so you don't get burned when rates go back up. And they will go up soon, as long as our Prez continues to want to "spend our way out of this economy"

2 big factors.
1. your current age.

2. your goals.

what a 30 yr old and 55-60+ yr old need/want/desire will b drastically differnt.

cd's r great for short term saving, like if u plan of using the money for a downpayment for a purchase or something like that.
they are not a place to stash extra money u have , cause if u ever need it u gonna have to pay a withdrawl fee...... if u get 3 % , 1/3 of that and goes to taxes. alot of people forget that when they buy a cd. im not sayin they r bad, just not for everyone and many people buy em just cause the banks advertise em non stop.