Have you been noticing ads for high-yield CDs by nonbanks? Beware that often the ads are for non-FDIC-insured annuities or another uninsured investment.

Or the advertiser could be an uninsured "deposit broker," who would place your money with an FDIC-insured bank -- possibly for a fee or a cut in the interest rate.

"The advertisement's goal is to attract consumers for the company's nondeposit products or services," an FDIC consumer alert explains of one common ploy.

The FDIC suggests considering these points -- before purchasing a CD:

• Whether noninsured investments are appropriate for your financial situation.

• Be sure you understand the terms of any CD you purchase.

• Research deposit interest rates at Web sites such as www.bankrate.com.

• Verify whether the institutions are FDIC-insured by going to www.FDIC.gov and checking "bank find." Also, read how FDIC insurance coverage works.

• Ask about any features that may allow you to earn a higher rate if market rates rise. If so, consider that the CD may have a lower rate than you might get elsewhere.

• When does the CD mature? Find out whether there is an early withdrawal penalty. If not, learn what happens if you need your money sooner than expected.

• Will the CD automatically renew at maturity? If so, you'll need to stay alert. You don't want to renew at a below-market rate.

• Although you might find a better deal on a CD sold through a broker, be sure you understand the extra risks and costs involved. "Read and understand the fine print, and make sure you are dealing with a reputable broker," the FDIC advises.

• Consider "laddering" CDs over different time periods. Say you have $10,000 to invest. Instead of putting it all into a five-year CD, consider placing $2,000 in a CD that matures in one year; $2,000 that matures in two years, and so on. This way, you have a CD maturing every year for five years. If you follow the strategy, you'll roll each maturing CD into a new five-year CD. But if you need the money, you won't suffer an early withdrawal penalty.

• Note that the FDIC insurance limit is $250,000 per depositor through 2013.

The latest wave of CDs let you participate in markets via various indexes, such as the S&P 500 index, Dow Jones or more exotic indexes, such as Treasury swaps or futures. Often, your principal is protected by FDIC insurance.

But there often are catches to these. You may earn only a percentage or "participation" in the gain or loss of an index, or your earnings may be limited by a "cap." With many, you could earn nothing for the entire term if the market moves against you.

Among some other issues to consider with these and other exotic CDs:

• You might not be able to withdraw.

• You may owe taxes -- even in years in which you've earned no interest.

• If purchased through a broker, you could pay a commission.