CD interest rates are likely to drop even lower because of a new rate cap that's expected to go into place.

In January, the federal government will begin indexing what rates the giant monster mega-banks are paying. BizJournals.com reports that certain smaller community banks that may be in danger of going bust will then be capped out at those rates.

It's possible this new federal order will be loosened or waived, but Clark is expecting the interest rate cap to stick.

So what should you do with money that you have in CDs? If they're due over the next 90 days, you'll probably want to put that money in new CDs before the year ends.

But as a larger strategy, you need to think about building an entire portfolio. Ask yourself what money you need now; what you'll need in an emergency; what you'll need 5 years from now; and what you'll need 10 years from now.

In short, assess your needs based on immediate, intermediate and long term projections. Remember that CDs are best used for money you'll need in 5 years or less.

Finally, if the interest rates on CDs at banks drop too low, be sure to look at credit unions for CDs. They are exempt from this proposed cap, as far as Clark can tell.