Safe CDs, checking accounts for investors scared of stocks

— -- If the past year has taught us anything, it's that we need to lower our expectations. Remember when investors assumed they'd earn 10% a year on their 401(k) plans? Nowadays, investors are exchanging high fives and fist bumps if they make it through the month without losing money.

Likewise, investors are also learning to lower their expectations for their low-risk investments, such as certificates of deposit and bank savings accounts.

Last week, the average interest rate for a one-year certificate of deposit was 1.37%, according to Bankrate.com. Don't look for improvement anytime soon.

The Federal Reserve Board wants to get the economy moving, and that means keeping interest rates low. At its meeting last week, the Fed said it's committed to keeping short-term interest rates at zero "for an extended period."

That doesn't mean you should take unnecessary risks with your emergency fund or stop saving. Here's a look at some products that provide above-average rates — along with their drawbacks.

Rewards checking accounts

Some community banks and credit unions, eager to attract deposits, are offering interest rates of 5% or more on their checking accounts. You can search for banks and credit unions offering rewards accounts at www.checkingfinder.com.

To get these rates, though, you must follow the rules precisely. Typically, the bank or credit union requires you to set up direct deposit, receive your bank statements online, and use your bank or credit union debit card at least 10 times a month.

If you don't meet these requirements — maybe you use your debit card nine times, instead of 10 — your interest rate will plummet, says Greg McBride, senior financial analyst for Bankrate.com.

For example, Malvern Federal Savings Bank of Paoli, Pa., offers a 5.01% rate on its rewards checking account for accounts of up to $35,000. But if you don't meet the requirements, the rate on your entire balance will crater to 0.20%.

Before opening a rewards checking account, McBride says, read the fine print and make sure the account fits your financial lifestyle.