CD's, or something better?

[Hedy]

I have about $2K in CD's that are maturing in about a month. They're currently at ING Direct. I'd been laddering them at $1K for 12 months and $1K for 6 months. I'm wondering if I should a)move them to a higher yield CD, keep them as they are, or c)invest them in something else.
Thoughts?

[thekid]

What is the money for?

[Hedy]

In theory, it's earmarked for funding me moving out of my mom's house in a year or so (possibly a condo downpayment, or funding apt. start up costs). However, I'm not totally opposed to using it to finish funding my Roth or something similar.

[sweeps]

What is the interest rate? You can get over 5% in various online savings accounts which would let you avoid locking up your money at all.

[Hedy]

It's in the low 5.1%'s. I think part of my hang up is that when I first got the money, savings accounts (high yield) would wind up making more interest than the CD's, but now it seems that as the shorter-term CD's are making more $, I might be better off locking in a higher interest rate.

[omicron]

Indymac Bank has a 6 month CD for 5.5% APY. But I'm not sure can you open it online or have to send a check.

[Hedy]

Thanks for the help! What's the common thought on the inverted yield curve-it is best to sink more into shorter-term CD's, or is it better to get a 12 month CD incase rates go even lower?