Amtrust Bank was a Ohio-based bank that had very strong CD rates in 2007 and 2008. The CD rates often topped the BestCashCow.com CD rate tables for 2 and 3 year CDs. News of its recent seizure by the Office of Thrift Supervision caused me concern as I continue to own CDs with the bank that pay over 4%. New York Community Bank, which acquired Amtrust in secret auction from OTS, has now announced that it will honor the CDs until maturity.

Once again, this proves that purchasing long term CDs, online or in branches, from troubled banks was a good strategy in 2007 and 2008. As long as you remain below FDIC limits, your money is safe and the terms of the CD until maturity are usually honored. I purchased CDs off of the BestCashCow.com listings at IndyMac Bank, at Wachovia, at Corus Bank, at Washington Mutual and at Amtrust. With the exception of Corus, which was not acquired but was closed and where I promptly received payment, all of the CD terms have been honored.

I am aware, however, that there have been instances where brokered CDs were not honored but were terminated by the acquiror.

I just wish that I had purchased long-term CDs back in 2007 and 2008.

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.

EBSB Direct is offering a 10-month CD that pays 1.77% APY with a minimum deposit of $1,000. That rate is competitive, putting it above the best 6-month cd rates and just below the best 12-month cd rates.

The rate is available nationally and the account can be opened online. The rate locks once the application is submitted. Funding can be done via an ACH electronic transfer from another account. Beneficiaries can be added on the application.

EBSB Direct is a division of East Boston Savings Bank. The bank has been in existence for 160 years and has assets in excess of $1 billion. In 2006, East Boston Savings Bank, the parent of EBSB Direct went public, using the holding company name Meridian Interstate Bancorp. The company trades on the Nasdaq under the symbol EBSB.

In addition to CDs, the bank also offers a high yield savings account.