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No. of Recommendations: 7
It's basic supply and demand. The banks and credit unions who are offering the highest yields are ones that have moved to internet banking and/or brokered CDs, so they are in competition with each other, as well as the bank next door for the limited pool of small time savers.

Treasuries, on the other hand,are where the big money goes (not just because of FDIC limits). Hedge funds and other big time day traders play the Treasury market, driving down yields when they want to buy. This is where the international money goes and the pension plans, insurance companies, etc. So "flight to safety" for the big players means Treasuries. Us small folks have the CD option, and for once being the little guy is an advantage.
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