We all knew this was coming. The Pentagon Federal Credit Union was offering a 5-year insured CD at 3% in the months of December and January, but now has pushed that rate down to 2%, still a good rate but not above-market.
PenFed’s 7-year CD also was paying 3% but now has re-set to 2.25%.
It was a good deal while it lasted, and I am sure it brought PenFed a lot of new customers, which was probably its strategy. I was one of them, as I explained in a previous post.
BankRate.com says the average 5-year CD is paying 1.5%, but there are some outliers, such as Barclays and EverBank at 2.12%.
Treasury Inflation-Protected Securities 
This is a personal decision and depends on your other investment options. If you think inflation will continue to be…