If you have $20,000 to invest, Irwin Union Bank has an eye-catching summer promotion.

It starts with a good rate on an 11-month certificate of deposit.

Exactly what you earn depends on where you live. You have to enter your zip code to get the rate for your area.

The lowest rate we found was 1.90% APY in Fair Oaks, Calif. The highest was 2.21% for Los Angeles and Titusville, Fla. The most common rate seemed to be 2.01%.

All of those CD rates are considerably higher than the national average of 1.15% APY, and approach the 2.30% you can earn on the best-paying, nationally available 12-month CDs.

The bonus is that you also get a 22-inch Sharp LG flat-screen LCD HDTV. They cost about $300 at online shopping sites such as Amazon.com. (You also have the option of a FLIP camcorder from Pure Digital Technologies. Inc.)

The minimum investment to qualify for a TV is $20,000. It’s sent to your home 30 days after the account is opened with Irwin paying the UPS charges.

The only downside we see is a steep early withdrawal penalty: 91 days worth of interest plus $500 deducted from your principal to pay for the television.

Irwin Union has 30 branches in nine states — Arizona, California, Kentucky, Michigan, Missouri, Nevada, New Mexico Ohio and Utah — but this offer is available nationwide and accounts can be opened online.

Click here to compare the quote you get from Irwin with the best CD rates from scores of banks across the country.

Our astounding turn toward frugality is not being rewarded by the continuing swoon in CD rates.

The Commerce Department says the personal savings rate rose to 6.9% in May, the highest it’s been since 1993.

But certificates of deposit sure aren’t paying the returns that encouraged us to save 16 years ago.

Bankrate’s weekly survey of large banks and thrifts taken July 1 found the average annual yield for a:

Three-month CD declined to 0.57% from 0.58% the previous week. That’s the lowest average since Bankrate began tracking 3-month CD rates in March 1989.

Six-month CD fell to 0.85% from 0.87% — the lowest average since Bankrate began tracking 6-month CD rates in January 1984.

One-year CD fell to 1.15% from 1.16% — the lowest it’s been since April 2004.

Two-year CD rose to 1.53% from 1.47%. That’s a little higher than the 52-week low reached earlier this month. But taking a longer-term look, this is the lowest 24-month CDs have been since August 2003.

Five-year CD ticked up to 2.19% from 2.18%. Last month the average fell to the lowest rate since Bankrate began tracking 5-year CDs in January 1984.

Of course you can earn more than that if you use our extensive database of CD rates to search for better-than-average deals.

But the best rates you’ll find today are no better — and sometimes worse — than the average rates we were earning last summer and fall.

It’s certainly far less than we were earning the last time the savings rate was this high. In early July 1993 the average:

• 6-month CD paid 2.85% APY, or three times more than today.
• Two-year CD paid 3.70% APY, more than twice as much as today.
• Five-year CD paid 4.99% APY, also more than twice as much as today.

That’s because the Federal Reserve is pushing interest rates artificially low to boost spending and rescue the economy from the recession caused by the financial industry’s reckless lending binge of the early 2000s.

To do that, the government-controlled bank has dropped what it charges commercial banks to borrow money to rock-bottom levels — 0% to 0.25% for overnight loans.

With the government providing so much cheap money, the banks can pay next to nothing for our deposits.

The Fed’s rate setting committee met in late June and concluded that “economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”

How extended.

Many economists think Fed Chairman Ben Bernanke will be very cautious.

The common wisdom is that Bernanke won’t start raising interest rates until he’s sure the recession is over and a strong recovery is underway, and that isn’t possible until mid-2010.

But on Tuesday, San Francisco Federal Reserve Bank President Janet Yellen indicated that it might take much longer than that for the economy to stabilize.

“It’s not outside the realm of possibilities that the Fed funds rate could stay at zero for the next couple of years,” Yellen told reporters after a speech in San Francisco.

Yikes! A couple of years?

Seems like the nation’s new determination to save deserves more support — and better returns — sooner than that.

If you’re hesitant to tie your savings up in a certificate of deposit because you might lose your job, Discover Bank has a solution.

The online bank run by Discover credit cards will allow you to withdraw part or all of your money — including the interest you’ve earned — if you’re laid off.

There’s no early-withdrawal penalty if you provide Discover with a layoff notice or paperwork showing you applied for unemployment benefits.

To be eligible you must open or renew a CD of 12 months or longer between July 1 and Dec. 31, 2009 with a minimum deposit of $2,500.

Interest rates are the same as on CDs without the penalty-free early withdrawal.

Discover is currently paying a respectable 2.20% APY on its 12-month CD, which is more than a full percentage point above the national average of 1.16%.

Click here to compare that with the best CD rates from dozens of other banks in our extensive database.

The government’s “Cash for Clunkers” program starts today. Here’s how to tell if your old car or truck qualifies for a rebate of up to $4,500 when you trade it in on a new vehicle. It’s on Bankaholic’s Personal Finance Blog, which you can always reach by clicking on the “finance” tab at the top of the page.

Two unusual deals just landed in the Bankaholic mailbox — one intriguing, one not.

Harris Bank wants to let us “Enjoy More Summer Fun” by skipping a car payment.

That sounds like a pretty terrible reason to stop repaying any kind of loan. Why a reputable bank would encourage frivolous spending in the middle of a terrible recession is beyond us.

Skipping is not the same as forgiving a payment, either. Harris adds the payment, and some extra interest, to the end of the loan. There’s also a $50 “processing fee” that must be paid right away.

But if we were out of work, had our pay cut, or been hit with a big unexpected expense, delaying a car payment might make sense.

Indeed, if we were struggling to keep the bills paid and get through the economic downturn like many families, the timing of this offer might be pretty darn good.

The deal we didn’t like came from Wells Fargo.

It asked us to “authorize delivery of your Free Credit Report.” All we had to do was attach a gold sticker that said “Send me my credit report” on a form and mail in back.

Of course that would also sign us up for Identity Theft Protection, with $12.99 a month — or nearly $160 a year — being added to our mortgage payments.

Most of us get very little benefit from a service like this and free copies of all credit reports can be obtained at annualcreditreport.com.

But identity theft protection is almost always profitable for the banks.

This summer’s highest yields on 24-month certificates of deposit wouldn’t have made it into our top three just a couple of months ago.

But they still pay significantly more than the national average of 1.47% APY for 24-month CDs — and you’ve got to earn more than that.

The best 24-month CD rates currently available nationwide are:

2.65% APY with a $2,500 minimum deposit from Discover Bank, an online bank owned by the credit card company.

2.65% APY with a $2,500 minimum deposit from Tennessee Commerce Bank, in Franklin, Tenn.

2.50% APY with a minimum deposit of $2,500 from Intervest National Bank in New York City.

2.47% APY with a $10,000 minimum from E-Loan Bank, which is part of the Puerto Rican financial conglomerate that owns Banco Popular.

Click here to compare these returns with the best
CD rates from dozens of other banks in our extensive database.

Umpqua Bank, which has scores of branches throughout the Pacific Northwest, has come up with a new incentive to save more.

Open a “Sweet Saver” savings account and free checking account before August 28, 2009.

Then have at least $50 a month automatically transferred from your checking account to your savings account.

Umpqua will reward your thrift by adding $10 a month to your savings account through April 2010. If you get started in July, you could have an extra $100 by spring.

It’s possible to open both accounts online, but you must live in those parts of California, Oregon or Washington that Umpqua serves.

The bank has designed a zip code finder that lets you know immediately whether you’re eligible.

What’s not to like? The interest rate on Umpqua’s Sweet Saver account isn’t all that sweet — 0.50% APY.

Compare that with the best interest rates on savings and money market accounts from dozens of other banks in our extensive database.

You might be able to lower your student loan payments by taking advantage of the government’s new Income Based Repayment Plan. It’s the first time student loans have taken into account how much graduates make when calculating how much they must pay each month. You’ll find it on Bankaholic’s Personal Finance Blog, which you can always reach by clicking the “finance” tab at the top of any page.

This southern bank has come up with one of the best CD rates around for short-term deposits.

Colonial Bank is offering 2.50% APY on a 12-month certificate of deposit with a minimum deposit of $500.

That’s better than the top-paying nationally available rate of 2.30%, and more than twice the national average of 1.16% for a one-year term.

In fact, it’s more than many banks are paying on 24-month CDs.

Colonial Bank, a division of Montgomery, Ala.-based Colonial BancGroup, Inc., has more than 340 offices across Alabama, Florida, Georgia, Nevada and Texas.

That’s a good thing because you have to buy these CDs in person.

It’s more than a little annoying that Colonial does not publish CD rates on its Web site. But it does have a bank locator so you can find the branch nearest you.

You can also call 1-877-502-2265 to make sure this interest rate is still available before you make the trip.

All of the best CD rates are being paid by community banks and thrifts these days.

Unlike the big banks, which have received billions of dollars worth of cheap capital and loans from the federal government, the little guys need your money.

A few small banks make their top-paying certificates of deposit available to savers nationwide.

But most only accept deposits from customers in the communities, or states, they serve.

The best of those local deals pay two to three times the national average and beat the best nationally-available CD rates. So they’re well worth shopping around to find.

Here are four of our favorites to give you an idea of what’s out there:

2.84% APY on a 30-month CD with a $2,500 minimum deposit from
Atlas Savings & Loan, in Brooklyn, N.Y. This offer is limited to residents of the New York City area.

2.75% APY on a 6-month CD with no minimum deposit from STC Capital Bank, which has two locations in St. Charles, Ill., a western suburb of Chicago. New accounts must be opened in person.

2.66% APY on a 12-month CD with a $1,000 minimum deposit from Quantum National Bank in Suwanee and Milton, northeast of Atlanta. Applications are accepted from Georgia residents.

2.55% APY on a 12-month CD with a $2,500 minimum deposit from Builders Bank, in Chicago. Applications are accepted from Illinois residents.

To make sure you’re getting the best deal, compare the quotes you get with the best CDs rates from scores of banks across the country.

CD rates resumed their slide this week, indicating that they still haven’t bottomed out.

Bankrate’s weekly survey of large banks and thrifts taken June 24 found the average annual yield for a:

Three-month CD declined to 0.58% from 0.60% the previous week. That’s the lowest average since Bankrate began tracking 3-month CD rates in March 1989.

Six-month CD fell to 0.87% from 0.89% — the lowest average since Bankrate began tracking 6-month CD rates in January 1984.

One-year CD fell to 1.16% from 1.19% — the lowest it’s been since April 2004.

Two-year CD held at 1.47% for the second week. That’s just one-hundredth of a point higher than the 52-week low reached earlier this month. Taking a longer-term look, this is the lowest 24-month CDs have been since August 2003.

Five-year CD ticked up to 2.18% from 2.17%. Last week’s average was the lowest since Bankrate began tracking 5-year CD rates in January 1984.

Of course you can earn more than that if you use our extensive database of CD rates to search for better-than-average deals.

But the best rates you’ll find today are no better — and sometimes worse — than the average rates we were earning last summer and fall.

That’s because the Federal Reserve is pushing interest rates artificially low to save the banking industry from its reckless lending binge of the early 2000s.

One way to help the banks boost profits and cover all of the bad mortgage and credit card debt on their books is to increase the difference, or spread, between what they pay for money and what they can earn from loans.

To do that, the government-controlled bank has dropped what it charges commercial banks to borrow money to rock-bottom levels — 0% to 0.25% for overnight loans.

With the government providing so much cheap money, the banks can pay next to nothing for our deposits — such as the 0.01% Chase Bank is offering on its savings accounts.

The Fed’s rate setting committee met Tuesday and Wednesday, and concluded that “economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”

And what about inflation?

A spike in the inflation rate would force the Fed to reverse course and start raising rates.

Many free-market advocates insist that the Fed’s policy and record federal budget deficits will ignite a bout of hyper-inflation like the kind we suffered through in the late ’70s.

The statement released after the Fed meeting acknowledged that energy and other commodity prices have risen over the past month or so. “However,” it said, “substantial resource slack is likely to dampen cost pressures and the committee expects that inflation will remain subdued for some time.”

That’s pretty clear.

The Fed doesn’t see inflation as a threat — the Consumer Price Index, the government’s key measure of inflation, has fallen 1.3% over the past year.

Therefore, it will continue to hold interest rates at these depressed levels for the foreseeable future.

There’s certainly nothing here to make economists who think Fed Chairman Ben Bernanke will be very cautious change their mind. The common wisdom is that Bernanke won’t start raising interest rates until he’s sure the recession is over and a strong recovery is underway — and that won’t be until mid-2010.

It seems that the best we can hope for this summer is that CD rates will level out and stop plunging to new lows each week.

So far, that hasn’t happened.