If one group of people has been trounced unfairly in this economic debacle, it's savers. People who save money routinely and steer clear of debt too large for their income have seen their good habits dismissed by an assortment of incredibly shrinking interest rates which produce little, if any, return.

Savers aren't asking for a gold star on the forehead, but helping subsidize the recovery wasn't exactly built into their financial plans either.

A lot of people today are rattled about the safety of their money and may be more concerned about the return of their principal versus the return on their principal. That's understandable, but you can do better than short-term Treasuries with virtually no return.

In January 2008, high-yield one-year CDs were yielding about 5 percent; today most are ranging from 2.5 percent to 3 percent. Not bad when compared with the one-year Treasury yield of 0.42 percent. It's also considerably better than the current 1.63 percent yield on traditional one-year CDs. The problem, of course, is yields keep plummeting. For the first three quarters of 2008 yields seesawed, but for the past 10 weeks it's been one big swan dive for traditional CDs, as surveyed by Bankrate.com.

Average CD yields (APY)

Date 6-month 1-year 5-year Jan. 1, 2008 3.38 3.51 3.73 April 1, 2008 1.87 1.94 2.75 July 1, 2008 1.92 2.29 3.39 Oct. 1, 2008 2.10 2.47 3.51 Jan. 1, 2009 1.44 1.79 2.62 Jan. 21, 2009 1.30 1.63 2.37

It's unfortunate, but people looking for high yields can sometimes fall for come-ons by unscrupulous businesses.

"There's no magic 8-percent risk-free yield," says Edward Gjertsen, vice president at Mack Investment Securities in Glenview, Ill. "If you look for yield in traditional spaces, a 30-year Treasury is at 3.25 percent. So, if someone offers you 5 percent risk-free for five years, you have to look long and hard at it. How are you getting that yield?"

If you're looking for a fixed-rate CD with a guaranteed return of your principal and interest, your best bet is an FDIC-insured bank or NCUSIF-insured credit union. Make sure your funds don't exceed the insurance limits.

If you don't want to lock up your money for a set period of time, consider a high-yield money market account. The yields are still quite good, some as high as 3 percent, but there's no guarantee they won't drop tomorrow.

Take action
Most savers care a lot about the interest they earn on their money. It takes work in good times and bad to find the best opportunities. Don't shy away from high yields offered by FDIC-insured banks. All of the banks listed in Bankrate's high-yield CD database are FDIC member banks.

Consider some added risk
CDs can be ideal for the low-risk portion of your portfolio, but if you think you need to earn a little bit more, you may want to increase the risk level a bit if you can afford to and it suits your tolerance.

Gjertsen says corporate bonds and equity-indexed annuities are two areas to consider.

"Corporate bonds are priced fairly reasonably. If you have enough money, you can buy individual bonds, or you can buy a mutual fund or an exchange-traded fund (ETF) that holds corporate bonds and provides a relatively good yield."

Gjertsen recommends iShares Investment Grade Corporate Bond fund (symbol LQD), which is currently yielding 5.5 percent. But he reminds you that only individual bonds have a maturity date, which means that, barring default, you'll get your principal back if you hold to maturity. Mutual funds and ETFs have perpetual maturity. If you sell at the "wrong" time, you could take a loss.

The annuities that Gjertsen thinks are worth a look are indexed to equity benchmarks such as the S&P 500.

"There are equity-indexed annuities, fixed annuities and even some variable annuities that are offering guarantees. You're transferring risk from your portfolio to an insurance company, as you do with homeowner's insurance. I look at equity-indexed annuities that (are pegged) to a certain stock index and perform accordingly. You're not trying to beat the stock market; you're trying to beat the CD market."

Gjertsen notes that plenty of caution is advised before investing in an annuity. Watch for surrender charges, market value adjustments, the rating of the insurance carrier, and the length of the policy. Make sure you're clear on all of the details and that the product is suitable for you. The Securities and Exchange Commission has additional information on equity-indexed annuities.

Conclusion
We're probably looking at rates remaining low as far as the eye can see. The most important thing is having enough cash on hand for your needs. Have some rock-solid investments and then, if you have some additional funds, take a look at alternatives that may earn a higher return.

Also, be aware that if you've plowed money into FDIC-insured accounts, you shouldn't expect the $250,000 government backing to last forever. Unless Congress extends it, the increased protection will expire Dec. 31, 2009. You'll need a plan for the reinvestment of that money if you've exceeded the standard $100,000 limit. We can only hope that interest rates will be on the rise and CDs will be a more enticing option.

Tired of managing your own portfolio? Consider a Certified Financial Planner.