If you’re looking for a secure investment with a guaranteed return, a certificate of deposit (CD), may be the right choice for you. Since CDs are protected accounts that are usually insured by the FDIC or NCUA, they are considered one of the safest places to put your money in an uncertain economy.

A CD is a type of time deposit, which means that when you take out a CD from your financial institution, you do so for a specific, fixed term – for example, one, five, or ten years. When you put money in a CD, you are making a commitment to let the bank hold your money for the entire length of the specified term. This differentiates it from a passbook savings account in that, unlike in a savings account, you are not allowed to withdraw funds at will from traditional time-deposit CDs. Withdrawal of funds from a traditional CD before its maturity date is called “early withdrawal” and is generally accompanied by financial penalties which wipe out any gains you may have made in accumulated interest.

A “passbook” is something that records the transactions you make on a traditional checking or savings account – which is why those accounts are sometimes called passbook savings or passbook checking. Technically, with a traditional CD you don’t need a passbook because you are not going to be withdrawing your money from the CD before its maturity date.

However, some banks offer a variety of CD options including liquid CDs, “bump-up” CDs, or Passbook CDs, which will offer you the advantages of a CD rate without the disadvantages of a traditional CD. Some passbook CD accounts may offer a higher rate than passbook savings, while offering the liquidity of a passbook savings account. Shop around and check with various institutions to get the best CD rates available to you.

Earning interest writing checks. The current instability in the financial and credit markets is leading many banks to entice consumers with something most of us don’t really think about: interest-bearing checking accounts. They’ve been around for years, but now they’re attracting more interest from investors because some are offering rates that beat the national money market average. Didn’t someone famous – or smart, at least – say that every crisis bears within in it the seeds of opportunity?

Interest-bearing checking accounts are, you guessed it, checking accounts which pay an interest dividend. They come with strings attached, of course – you’ll almost always be required to maintain a minimum balance in order to avoid monthly fees, for example, and if you end up paying those fees, it could erase the earnings you were just overjoyed to see on your balance. Not only that, but as banks scramble to increase their profit margins, the price of ATM, overdraft and monthly service fees have all spiked. Another important consideration for many people will be the fact that the best rates will be offered for those with the biggest deposits. ING, for example, needs $100,000 in order for you to qualify for their 3.05% rate. Most of us deal in smaller sums than that. (OK, a lot smaller.)

Like we said, however, banks are looking for more customers and more money, and some have begun offering very attractive rates for their interest accounts. One, First Federal Bank of California, is offering a 4.16% rate on its interest-bearing accounts to California customers. Another in the New York City area, E Trade Bank, offers a 2.9% rate. Who knew you could save money – come to think of it, who knew you could make money – on a checking account?

Interest-bearing checking accounts just might turn out to be an unexpected growth area resulting from the current financial uncertainty.

Another bank bites the dust. Citigroup agreed to a takeover of the troubled Wachovia in yet another government engineered rescue.

With huge losses in its mortgage portfolio, the nation’s sixth largest bank is now the latest to fail – sort of. “Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC,” the Federal Deposit Insurance Corp. (FDIC), the banking industry regulator, said.

Citigroup will buy the majority of Wachovia’s operations, including the bulk of its assets and liabilities. Citi will only assume up to $42B of losses from a pool of $312B of loans held by Wachovia; the FDIC will absorb losses beyond that and take a stake in Citigroup for the guarantee.

The takeover will create a retail bank with almost 10% share of the US market deposit sector in the continuing consolidation of US banks. Its business as usual if you have an account with the bank and no word on keeping the Wachovia name and brand.

Know what protection your money has at your bank. The Federal Deposit Insurance Corporation (FDIC) can insure you for a lot more than $100,000; know the details.

At an insured bank covered by FDIC, a single account is insured up to $100,000 in total. You may have two or three accounts at that bank, as long as the aggregate is less than $100,000, you are covered.

The FDIC will also cover up to $100,000 for each person listed on a joint account at the same bank. It’s important to understand these limits are based on the type of ownership, not the number or types of accounts. The FDIC calculates your joint account limit based on your share of any accounts you own jointly at that bank. A couple could be insured at a bank up to $400,000 using the combination of single and joint accounts.

If you exceed these limits, consider moving some of your deposits to another bank. Remember that limits are per bank, not branches of the same bank. Watch out for bank mergers as well.

The FDIC only covers deposit accounts like savings, checking, money market funds and CD’s. FDIC insurance does not cover money invested in stocks, bonds, municipal securities, mutual funds or annuities, even if the investments were bought from the insured bank. Also watch out for money market funds, they are considered an investment product and are not covered.