Have you purchased a CD online? Was it difficult? Did you worry about security?

I am looking for a very safe investment that is less than 1 year term, but that will bring in at least 4.5%. I have not bought any investments online in the past.
Please share your experiences, both positive and negative.

Using a Fidelity Brokerage account I have bought many CDs online throughout the years. I would take all the usual precautions: change password frequently, have a good firewall installed, close your browser after the transaction is complete.

You could also open a Treasury Direct account and purchase a 13 week or 26 week T-Bill. T-Bills are purchased at a discount and the face value (multiples of $1000) is paid at maturity. You link your account directly to your bank checking accoung.

I have a CD with ingdirect.com.
Very easy to do and no security problems.
6 month CD 5.00%
9 month CD 5.25%

I haven't bought a CD, but I opened a money-market account with ING Direct. Almost trivial, and when I had a question, I was able to talk with someone on the phone who gave me the answers I needed.

Bankrate.com can give you information on the best rates and terms. Just make sure to do your homework and make sure the institution is FDIC insured.

CDs may not be the best option - you might instead look at the Orange saving account from ING. They have a very decent annual return (around 5%). They are FDIC insured (up to the maximum $100,000) so there is no risk in the investment.

In any case, I did buy a CD online from eloan http://www.eloan.com/savings. It was very easy - they transferred the money direct from my bank. I can view the account online at any time. No problems.