We’ve been talking about how to gauge the interest rate market, specifically in maximizing your return on certificates of deposit. One strategy is to continue to renew a short-term CD; doing so will allow you to maintain some access to your funds and not tie them up long term, in case interest rates rise sometime in 2010. Since rates on all certificate terms are depressed anyway, you may not lose much in interest if you go for a shorter term right now, a key benefit.

One way to do this is through a 3-month CD. There are a handful of banks paying over 1% on a 90 day certificate, and leading the way this week is UFB Direct.com. The Irvine, California-based bank is offering an annual percentage yield (APY) of 1.22 on a 3-month term, with a minimum deposit of $8000. If that minimum balance is a concern for you, Midvale, Utah’s Ally Bank has a 1.05 APY with no minimum deposit for 3 months. As usual, MetLife Bank is focused on higher-dollar depositors; MetLife’s 1.15 APY 3 month CD is only available on amounts of $25,000 or more.

As always, you’ll want to ensure that your account is titled correctly so as to be properly insured by the FDIC, so ask your banker for more information before depositing.