It's tough to earn decent money on savings now that the Federal Reserve has pushed rates down, down, down.

The government-controlled bank has dropped what it charges commercial banks to borrow money to rock-bottom levels.

Rates on overnight loans now range from 0% to 0.25%, and the Fed left them unchanged after its November meeting. And they're likely to stay where they are until the economy shows strong signs of recovery.

As long as the Fed is a dirt-cheap source of money, banks can continue to reduce what they pay on your deposits, whether they're in certificates of deposit, savings or money market accounts.

Just a couple of years ago, dozens of banks were offering 4% returns on one- and two-year CDs. Now, no one is paying even close to that unless you commit your money for six or seven years. That's too long.

You can't even get a 4% rate on a five-year CD anymore. And the best rate available on one- and two-year CDs ranges from 2% to maybe 2.5%. Our most recent survey of major banks shows the national average on 12-month CDs is 0.91% APY.

That's the lowest it's been since we began tracking rates in October 1983. And it's far off the peak of 3.89% reached in September 2006.

What's a saver to do?

Take advantage of Interest.com's extensive database of CD rates and follow our 5 smart moves for buying CDs to maximize your returns.

Smart move 1. Don't go too long.

Don't tie up a lot of money in a four- or five-year CD just to get a better rate. You want to be ready to pounce when shorter-term rates begin to rise.

When will that happen? No one really knows, but the Federal Reserve could start boosting short-term rates in the first half of 2010. Such moves would send CD rates in a positive direction.

To remain flexible with your money, we suggest getting the best yield you can on a term of no longer than 12 to 24 months -- tops. That will allow you to jump on a better rate when your CD matures.

Right now, MetLife Bank, owned by the insurance giant, is offering a 2.25% APY on a 12-month CD. It's a good rate, but you'll need a $25,000 minimum deposit to take advantage of it.

Hudson City Bank, headquartered in Paramus, N.J. with dozens of branches in Connecticut, New York and New Jersey, is paying a top rate of 2.50% APY on a 24-month CD with a $5,000 minimum deposit to online applicants nationwide. If you live in the Hudson City service area, your minimum is only $500.

Frontier Bank, located in Everett, Wash., with 50 branches in that state and Oregon, is paying 2.45% APY on a 24-month Silver CD with a $500 minimum deposit to online applicants nationwide. If you have a $50,000 minimum deposit you can earn 2.55% on that CD.

(Those rates are the APYs, or annual percentage yields, each bank pays. APYs are slightly higher than the actual interest rates because they include the interest you'll earn on the interest you're paid during the term of the CD.)

Shy away from deals that require you to open a checking account to get the special rate. You probably don't need a second checking account, and it's just a way for the bank to recoup some of the interest it's paying through fees.

Smart move 2. Look for odd-term CDs.

The best short-term rates are sometimes available on CDs that mature in four, five, seven, 13 months -- or longer. But you really have to look for these deals.

The bank where you have your checking and savings accounts may have promotional CD specials available only to its customers to keep them from shopping for better rates at other banks. If it's a good rate on a short or odd term, take advantage of it.

At Ridgestone Bank pays 2.50% APY on a 25-month CD, but you need a $40,000 deposit to open it. It has two locations: one in Schaumburg, Ill., a northwest suburb of Chicago, and one in Brookfield, Wis., outside of Milwaukee, but they accept deposits nationwide. Just give them a call and they?ll email you an application form to get started.

Smart move 3. Don't hesitate to use Internet banks.

They sometimes have the highest rates.

For instance, Amboy Direct, the online division of 120-year-old Amboy Bank in Old Bridge, N.J., pays 2.10% APY on balances over $10,000 with its eSavingsCD. Balances from $100 to $9,999 pay only 1.0%.

This hybrid account allows you to open a CD with a $100 deposit and make additional deposits during the first six months up to $100,000.

Chances are, the best-paying CD is not at a bank in your neighborhood, so you'll have to apply online. But banks have simplified the process and offer help if you have problems with your application.

And the federal government insures those deposits, just as it does deposits in your community banks.

Don't sign up for any CD that isn't FDIC-insured, no matter how good the rate. The risk is just too great.

Until at least Dec. 31, 2013, accounts insured by the FDIC are covered up to $250,000 per depositor per insured bank. Depending on the account ownership, don't keep more than the limit in any one bank.

Ask the bank for more details or go to the FDIC Web site to read more about the limits and any exceptions that might apply.

Smart move 4. Take full advantage of local credit unions.

They often offer competitive rates for many types of loans and deposits -- and sometimes have the best rates around.

The Crane FCU, with a broad-based membership serving seven counties in southern Indiana, is paying 2.78% on a special 25-month CD with a $500 minimum.

Credit union membership used to be limited to employees of a certain company or trade, but today's rules are more liberal.

Credit unions are the one exception to the FDIC rule. The National Credit Union Administration, or NCUA, insures credit union deposits under the auspices of the federal government, to the same limit as the FDIC.

Here's how to find credit unions in your area.

Smart move 5. Don't ignore the deals right in your own backyard.

Small banks often have better-paying specials because they don't have access to the international capital markets that big banks often use.

For example, STC Capital Bank, with two branches in St. Charles, Ill., a far western suburb of Chicago, is offering a six-month "Try Us" CD that pays 2.25%. There's no minimum deposit, but the maximum is $25,000.

Check the business section of your newspaper and look at signs in front of banks or in their windows when you're driving by. Good-paying CDs aren't plentiful, but they are available.

Go for the best rate on a CD of two years or less. It will give you the flexibility you need to go after the best rate when your CD matures.

Be ready to grab it.

By Carolyn Siegel

Interest.com Associate Editor