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It really depends on whether or not you need quick access to the money. If the $2K is an Emergency Fund (you do have an Emergency Fund, don't you?), then I'd say keep it in the savings account. If the $2K is just some extra cash that you'd like to earn a little more on, go with the CD. You will pay penalties for taking the money out of the CD early, if you need it. Another option is opening an account with one of the new online banks, like ING Direct. You have access to your money and the rates are better than the 2.9%. NOTE: I do not work for ING Direct, but I am an avid user of their Savings and Checking accounts.
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