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If you look at the links from message 40, you will find that intermediate term, investment grade corporate bonds can pay as much as 8% these days. These are not AAA, but they are safe enough for most of us.

In most cases CD's are insured (up to certain maximums), which makes them as safe as the government and paper money in my view. Investment grade corporate bonds are safe, but not quite as safe.

In addition to lower interest rates, the greater problem with CD's is that if you need the money before the due date, often the penalties will wipe out much of your interest. Provided you buy bonds in at least $5K and preferably $25K lots, they can be sold if need be. So they have better liquidity.

If the funds you have to invest are small, CD's may be the best you can do. You should decide what is best for you, but if you have more than say $50K to invest, take a look at a ladder maturity portfolio of investment grade corporate bonds.
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