Interest-Earning Crunch

Downside:

Money market yields are below 1%and CD yields aren't much higher. Withshort-term interest rates near all-timelows, physician-savers are having a toughtime finding places to earn higher yields.One possibility is online banks like Bankof Internet USA (www.bankofinternet.com), which are generally paying rates onmoney market funds and CDs that are apercentage point or more above what youcan get from a traditional bank. Anotherchoice is I-Bonds, the inflation-protectedbonds from the US Savings Bond Program(877-811-7283; www.publicdebt.treas.gov/sav/sav.htm). I-Bonds boughtbetween now and the end of Octoberyield 4.66%. You can't cashan I-Bond for at least 1 year and if youcash it before 5 years, you forfeit 3months of interest.—Michael Sheehan