How to Play $1K: Sweet CDs

Editor's note: Not drowning in debt? Have $1,000 to put to work? TheStreet.com senior correspondent and You're So Money author Farnoosh Torabi looks at certificates of deposit (CDs).

With all the eye-rolling over how there's no point in putting money in a short-term savings vehicle -- with the Fed slashing interest rates and all -- I wonder how my 12-month "Orange" CD from INGdirect.com (ING Quote) is earning an impressive 4.7%.

Granted, I opened the account back in January, when rates were a tad higher. But what if I were to open a new CD at ING now?

Relative to some other bank CD offerings, it would carry a still-competitive yield of 3.3%. The current nationwide average rate of return of CDs is 3.03%, according to Bankrate. And average minimum deposits are about $1,000. Perfect! ...