There's good news out of Washington when it comes to your money. The increase in federal deposit insurance has been extended, and earnings on certificates of deposit have improved.

Congress temporarily increased the limit on federal deposit insurance per depositor from $100,000 to $250,000 in October 2008. The additional coverage was set to expire at the end of this year. But on May 19, Congress voted to extend that coverage another four years, or until Dec. 31, 2013.

Certain retirement accounts, including IRAs, have permanent protection at the higher level. And such accounts will continue to be protected up to $250,000 beyond 2013 because Congress set a permanent coverage limit on these accounts in 2006, according to the FDIC.

All of this should be comforting for anyone who has parked substantial savings in cash while waiting for the economic storm to settle down. Before you get too comfortable on the sideline, though, investment advisers will tell you that money parked in a low-earning savings account isn't as safe as you might think. There, cash is subject to the whittling effect of inflation.

Although equity prices overall have not returned to their high-flying levels and economic turmoil remains with us, the stock averages that were hammered beginning last fall have recovered substantially.

With that additional FDIC protection and some small increases in interest rates offered at several local and national banks, this could be a good time to go shopping for certificates of deposit.

First, be sure the institution offers FDIC deposit insurance. In exchange for leaving the money in the account for a set amount of time, the bank pays you a higher interest rate than that offered on a basic checking or savings account.

Some banks offer to increase the yield if interest rates rise during the term of your CD. One local FDIC-insured homestead, for example, has a one-year CD for a minimum $1,000 investment earning a 1.75 annual percentage yield. Or you can choose a 1.66 yield with a chance to take advantage of a higher yield if interest rates rise during the term of the CD. I found a local, federally insured credit union offering 3 percent interest on a 12-month CD, but the minimum deposit requirement is $10,000.

Read the disclosure statement that gives the interest rate on the CD and other details. Find out how often the bank pays interest and how you'll be paid (whether by check or electronic funds transfer). Find out if there's a penalty for withdrawing money from the CD ahead of time.

Be sure to note how far ahead of the CD's maturity date you must notify the institution about what you intend to do with the money, whether to withdraw it, deposit into another account or automatically roll it over into another CD.

You'll also need to know if the CD renews automatically, and whether the renewal rate will be the same as the existing rate or at the current rate at the time of the renewal.

Rather than investing all your money at a fixed rate now, you can "ladder" the CD purchases, or set them up to mature at different times. So if you have $6,000 to invest, you can get a $2,000 one-year CD, one that matures in 18 months, and another $2,000 CD that matures in two years. Or you could purchase a $2,000 one-year CD, then wait and see what interest rate is available in three or six months.

The FDIC Web site offers a handy tool to see if you're completely covered. At www.fdic.gov/edie/calculator.html  you can enter information about personal and business accounts held at FDIC-insured institutions, account balances and names of account holders.

Be skeptical of advertised CD rates that are far higher than the going rate you see at local institutions. The FDIC warns that such products could be issued by a company that is not federally insured, so your money could be at risk.

For information, visit www.myfdicinsurance.gov or call the FDIC toll-free at 877-ASK-FDIC (877.275.3342).