Legacy Bank of Milwaukee is offering a 25-month CD for 2.95% APY. That's far higher than the highest 24-month CD rate of 2.30% and even higher than the best 36-month CD rate of 2.81% APY.

I called and spoke to a CSR who confirmed the rate and said it was going to be good through the month of April. This bank wants to bring in deposits!

Other important items she told me:

• The rate is available nationwide
• Applications can be taken online and a signature card will be sent via mail. Applicants must sign and return with proof of ID.
• Funding can be done via check or wire.
• Rate locks when application is received.
• Early withdrawal penalty of 6 months.
• Funds can be withdrawn via a certified letter at end of term.
• Minimum balance is $2,500.

In addition to the 25-month CD, the bank is also offering a competitive 1.90% APY 13-month CD and a 1.75% APY on money market account fund with a minimum balance above $10,000.

Legacy Bank has one branch and assets of $236 million. It is a small bank so look for it to be overwhelmed once this offer catches on. Get in early if you are interested and be prepared for some delays. The bank is FDIC insured and is rated 2 out of 5 starts for its safety and soundness according to Bauer Financial.

The mainstream press is finally starting to discuss something I've been exploring for the past couple of months - what if interest rates aren't going up as almost everyone expects?

Fortune published an article on March 15 entitled - What if interest rates don't rise? The article discusses the possibility that rates may stay low for years and then compares the US situation to Japan.

"Even if it doesn't come to that, Japan's lost decades show that low-rate policies are far from foolproof. Japanese 10-year notes recently yielded 1.35% and haven't been above 2.15% in more than a decade, Simons noted."

In February I took a look at Japan's interest rate history in the face of mounting public debt (Could Interest Rates Stay Low Despite Growing US Debt - Look at Japan). Japanese interest rates have come down over the past twenty years even as public debt has surged to over 120% of GDP. By comparison, US debt as a share of GDP is currently around 80%.

Yet, despite this rising debt, "Japan’s experience shows that “printing money” doesn’t always lead to an inevitable increase in interest rates. Ten-year US Treasuries at 3.7%, savings accounts at 1.5%, and 30-year mortgages at 5% could be the new norm instead of a low-point before rates quickly bounce back up."

Are we in a new low-rate environment or will rates go up? Is this recovery for real are we in a Japanese style deflationary environment?

The answers will determine the direction of interest rates and whether a 5-year CD paying 3.3% APY is currently a good place to park money? If you believe rates are going to rise, then it's not. If you think rates might stay low for at least the next five years then it might be the best you'll be able to do.

Compare 5-year CD rates here.

First Federal in the southeastern region of the country is offering customers 2.05% APY on a special 12-month CD. You can open a CD online with a minimum of $2,500 or you can visit one of the branches in South Carolina, North Carolina, Georgia or Florida to open an account with a minimum of $1,000. According to the bank’s website, only residents of these four states are allowed to open this CD account online. The maximum deposit for this account is $250,000.

The CD offered under these terms is called a Money Builder CD because it has two features that help to make your money work for you. For one, it allows you to make additional deposit of $500 or more during the term of the CD. You can also “bump up” your interest rate one time while the CD is still maturing.

The online application to take advantage of this promotion allows you to fund the deposit by using your credit card, debit card or your checking account. If you are going to use your credit card to make your deposit, be careful. Your credit card issuer may consider this a cash advance and charge you fees and interest that are greater than the return you are going to receive from this promotion.

In addition to this, First Federal also offers a high-yield reward checking account for customers. The Moolah Checking can be opened in much the same way as the Money Builder CD and it offers 2.51% APY for balances up to $25,000.

First Federal is located throughout the Southeast and other areas of the country. In South Carolina, you can find branches in Hilton Head, Charleston, Myrtle Beach and Florence. You will also find branches in North Carolina and the other states mentioned above. The institution has been a member of the FDIC for more than 75 years.