Boston Gal's Open Wallet

The higher rates are attracting the attention of some savers. Patrick Spangler of Pleasanton, Calif., is considering a 20-year FDIC-insured CD yielding 6%, which is callable after one year, through Charles Schwab Corp., his brokerage firm. "I'm interested in the highest rate I can get," says the retired nuclear engineer, who looks for yields ranging from 5% to 6%. "I'm 70, and we're looking for income," he says, referring to himself and his wife.

Callable CDs, which are often sold by brokerage firms, typically promise higher interest rates than traditional CDs because the financial institution can return the money after the callable date if prevailing rates decline. That, in turn, could leave savers scrambling to reinvest the funds at a good rate.

Although Mr. Spangler is betting that interest rates will stay low, he admits that if there is rampant inflation and interest rates soar, he'll be stuck at 6%. If interest rates drop, he expects the financial institution issuing the CD will call it early and return his funds. Still, he's willing to take that risk because he'll be earning 6% for at least a year. "There's risk in everything," he says.