But along with a wider range of savings and investment options comes an increased need for consumers to be knowledgeable about these new banking products and the different risks associated with them. "The old rule-of-thumb was, 'if it comes from an FDIC-insured institution, it must be completely safe because it's covered by FDIC insurance,' but that doesn't necessarily hold true," says Kate Spears, an FDIC consumer affairs specialist in Washington. "These new products can offer the potential for higher returns than traditional deposits, but consumers need to understand these products, especially the risks, before they make a purchase."

One important aspect of understanding the risks is to know which products offered by banking institutions are covered by FDIC insurance and which are not.

"It's easy to understand how some consumers could become confused about which products are FDIC-insured, especially when the new investment products are sold at the same offices where customers can open deposit accounts," says Kathleen Nagle, also of the FDIC's consumer affairs division in Washington. Two examples:

• A stockbroker at your bank or savings institution can sell securities and mutual funds that are protected against certain losses, but not by the FDIC and not in the same way the FDIC insures deposits. The Securities Investor Protection Corporation (SIPC), a non-profit corporation (not a government agency) funded by brokerage firms, provides limited coverage if, for example, a member brokerage firm goes out of business. The SIPC doesn't insure you against financial losses caused by market declines. (To learn more, go to the SIPC Web site.)
• Your bank or savings institution can sell annuities, which are investments with income guaranteed to start some time in the future. Annuities may appear to be "insured" because they guarantee a minimum payment for life, but these products are not FDIC-insured.

As part of the FDIC's ongoing efforts to educate consumers about what is and is not FDIC-insured, and to help you better understand the wide array of investment, savings and insurance choices available from banks and saving institutions, we offer the following guide.