[ImBetterAtGolf]

We don't know the probability that a good bank will fail. There aren't enough events in recent years to estimate it very well. However, your requirements are fairly stringent and it may be that no institution today satisfies them.

In any event, retail bank CDs are unlikely your best alternative. If you think you are giving up too much owning Treasuries, you can find money market funds that both can get you where you want to be and are more liquid than CDs.

There are a lot of issues in the short term funding markets today, so since you appear to be quite risk averse, find a super vanilla 2a-7 fund.

I don't understand all the Australia stuff. Aside from being nonresponsive to the poster's question, Australia has been hit hard with -- US subprime mortgages!