In this sad time for CD rates, it’s practically cause for celebration when a bank increases rates.

That’s exactly what happened last week when Bank of Internet USA leapfrogged over two banks to take the lead in the 12-month term on our CD Rates Leaderboard.

The San Diego-based online bank (www.bankofinternet.com) is paying 1.33% APY with a $1,000 minimum deposit — the highest 12-month CD rates we’ve seen in more than a month.

That’s three times the average annual yield of 0.44% that large banks and thrifts are offering.

Here are the other banks we’re watching:

AloStar Bank of Commerce (www.alostarbank.com), an online bank based in Birmingham, Ala., is paying 1.27% APY with a $1,000 minimum deposit.

E-Loan (www.eloan.com), a subsidiary of Banco Popular North America, is paying 1.26% APY with a $10,000 minimum deposit.

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Dear Dr. Don,
My 20-year-old son has many Series EE savings bonds, most of which have reached or are near full maturity. With the looming debt crisis, are they in danger of being unredeemable if the government defaults on the national debt? In other words, should they be cashed as soon as possible?

Dear Chris,
Matured savings bonds have stopped earning interest and, if your son deferred paying income taxes on the interest earnings, the income tax is due in the tax year that the bond matured. There’s no reason to hold on to these EE bonds, waiting for better days. Their best days are behind them.

For EE bonds that haven’t reached final maturity, the federal debt limit crisis is a bump in the road — not a fork. It’s not a reason for your son to run down to the bank and cash in these securities before the government runs out of money.

What he should do is enter his EE bonds information into the government’s Savings Bond Wizard.

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The Garden State has been abloom with sweet CD rates, this time for 24- and 60-month terms at The Bank of Princeton.

With a $500 minimum deposit, the New Jersey bank is paying 1.75% APY for 24-month CDs and 2.75% APY for 60-month CDs.

Both easily beat the top nationally available CD rates for their terms on our CD Rates Leaderboard — the 24-month CD rates by a quarter percent.

The bank is also offering 2.00% APY for 36-month CDs, which ties the top rate for that term.

You don’t have to be a New Jersey resident to buy these certificates of deposit, but you do need to visit a branch of The Bank of Princeton (www.thebankofprinceton.com) in person.

There are six branches, in Hamilton, Monroe Township, Pennington and Princeton.

And don’t forget the other good New Jersey deals we’ve found recently at:

• Parke Bank, which is offering top 13- and 24-month CD rates.
• Northern State Bank, which is offering top 24- and 36-month CD rates.

See how these returns compare with the best CD rates from scores of banks in our extensive database.

MCT Credit Union invites its members to take advantage of their best reward checking account called Kasasa Cash. The credit union lets you earn an interest rate of 3.51% APY for balance up to $25,000. You can earn an interest rate of 0.25% APY for the portion of the deposits above $25,000. You can also refund your ATM fees of up to $25 when you meet the following requirements:

• make at least 10 debit card purchases at the point of sale
• setup at least 1 ACH automatic payment, one bill payment, or direct deposit
• subscribe to electronic bank statement

In case qualifications are not met, you will not be able to refund your ATM fees but you still get to earn their base interest rate of 0.13% APY. Aside from this, you still get unlimited check writing and free online banking. Best of all, this best checking account has no minimum balance requirement nor monthly service fee.

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Home prices are still falling, unemployment is once again rising and the stock market lost ground every week in May.

But while the signs of a possible double-dip recession are increasing, this month’s Financial Security Index poll discovered a frightening fact: Roughly half of Americans are dangerously unprepared for a personal financial emergency.

Bankrate’s Financial Security Index poll for June found 24 percent of Americans have no emergency savings at all. Another 22 percent said their emergency savings would cover, at best, three months’ worth of expenses.

Only one in four said they have six months’ worth of expenses for use in emergency, the minimum recommended by many financial planning experts.

“It still looks like a lot of people are skating on very thin ice,” says Frank Armstrong, a Certified Financial Planner and president of Investor Solutions in Miami.

Not surprisingly, higher-income earners were most likely to have a cushion of savings to fall back on.

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You can find 24-month CD rates that are better than the best nationally available deal at Habib American Bank’s two Los Angeles branches.

The institution, owned by Pakistan’s largest bank – Habib Bank Limited – is paying 1.60% APY with a $1,500 minimum deposit.

That’s a tenth of a percentage point better than the best 2-year CDs on our CD Rates Leaderboard.

You must buy these certificates of deposit in person at one of the bank’s two California branches in L.A. or Artesia.

Habib American Bank (www.habibamericanbank.com) also has two New York City branches – in Manhattan and Queens – a branch in Hicksville, N.Y. and a branch in

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Central Massachusetts savers should check out Clinton Savings Bank’s 51-month CD rates.

It’s paying 2.51% APY with a $500 minimum deposit.

That’s a pretty good deal when compared with some of the standard terms we track.

The top nationally available CD rate for 36-month CDs on our CD Rates Leaderboard is 2.00% APY; for 60-month CDs, 2.60% APY.

To buy these certificates of deposit, you must live in Clinton Savings Bank’s central Massachusetts “footprint.” The bank serves the communities of Berlin, Bolton, Boylston, Clinton, Sterling and West Boylston.

You can buy CDs at one of Clinton Savings Bank’s six branches, or online (www.clintonsavings.com).

See how these returns compare with the best CD rates from scores of banks in our extensive database.

One of the biggest risks to your retirement is facing a bear market during the early years after you stop working. If you must sell stocks in a falling market, you risk depleting your nest egg at exactly the moment you need it — leaving you with too little savings to cover your needs for your retirement.

If you withdraw regular amounts from your portfolio to cover your living expenses during a market downdraft, you must sell more shares at a lower price. It’s essentially the reverse of dollar-cost averaging, which is what you did during the accumulation phase when you invested money at regular intervals.

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Harris Bank’s special CD rates are only good in Illinois, Indiana and Wisconsin — the states where the Chicago-based bank has some 300 branches.

But those specials are just OK.

With a $5,000 minimum deposit, Harris Bank is offering 0.85% APY for 13-month CDs, and 1.75% APY for 45-month CDs.

Both easily beat the average annual yields large banks and thrifts are paying for corresponding terms. This week, that’s 0.45% for 12-month CDs, 0.97% for 36-month CDs and 1.62% for 60-month CDs.

But to qualify for these specials, you must have or open a checking account with the Harris Bank (www.harrisbank.com). Otherwise, you’ll earn only 0.75% APY for the 13-month CD and 1.55% APY for the 45-month CD.

Also, that $5,000 minimum deposit must be “new money,” or money Harris Bank hasn’t seen before in your account.

Even with these stipulations, the specials are by far the best Harris Bank has to offer.

Nearly all of its standard CDs are below average.

We’re

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