Many smaller banks across the country offer higher yields on savings products than some larger, local banks -- and that may tempt consumers to shop for certificates of deposit out of state.

It also heightens concern about the safety of such banks, which often have small asset bases of $100 million or less. Consumers can use the same government and independent resources available to professional money managers to assess bank safety, but common sense is critical as well.

Get information in writing beforehand
One key is to get everything in writing from the bank before sending in a deposit. But it also helps to get an idea of how efficiently a bank is managed.

According to Walter Heller, research director for the bank rating company Veribanc Inc., when most banks get into financial trouble, bank managers will often try to recover losses by cutting costs. So at troubled banks, the financial squeeze can first manifest itself in poor customer service, long teller lines, nonfunctioning ATMs, or botched transactions.

"The big fear for banks is failure and lost money due to poor management," said Heller.

Keep in mind, the government-run Federal Deposit Insurance Corp. insures domestic bank accounts for up to $100,000. But Heller said the "FDIC makes most banking products safe, but good isn't perfect."

Compare rates nationwide
Experts advise consumers to shop and compare all costs before depositing money. Most money is deposited in local banks because their proximity can make them more convenient for some consumers.

But CDs can be purchased at almost any bank around the country through the mail or over the telephone. Before buying a CD, figure out whether the costs of calling and corresponding with an out-of-state bank are outweighed by the higher interest rate the bank may offer.

Also, keep in mind that if a bank is taken over by another bank, CD terms or rates my change.

Investors can also let a brokerage firm shop for them. Brokers pool CDs from institutions nationwide and can offer a variety of rates and terms. Most of the brokerage offerings are so-called jumbo CDs that require $100,000 or more to be deposited, and therefore may not be wholly insured by the FDIC.

Check Web, bank regulators
The FDIC provides background information on the banks it regulates, and the Office of Thrift Supervision has similar information about savings & loans. The FDIC allows consumers to search for information on a particular bank's financial soundness and compare it with other banks.

State banking commissions, which are typically listed in the government pages of the telephone book, can also give consumers information about a financial institution's charter. Some state agencies track complaints, as well.

Also, of course, make sure to check out Bankrate.com's Safe & Sound rating, which analyzes banks and thrifts on their soundness.

Final tips
Bank mergers can be a cause for concern. A bank acquiring another institution is required to give consumers at least 60 days notice of a merger but is not required to honor interest rates and other terms of the institutions it absorbs.