Investors looking for high yields should use caution
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What should consumers do?
The interest yields touted by Federal Savings LLC were considerably higher than the FDIC-insured, high-yield CDs posted in Bankrate.com's database.

It's a cliché that clearly bears repeating: If it sounds too good to be true, it probably is.

Michael Stevenson, securities administrator for Washington's Department of Financial Institutions, says that consumers who reach for higher yields have to accept the increased risk. "Scammers often set up in that zone just above legitimate yields to get the investor to believe that it's still safe for them. But it should set off an alarm that you need to take extra precaution."

If you come across a financial or banklike offer that piques your interest but also makes you wonder even a little bit if it's legitimate, Stevenson urges you to contact your state banking supervisor or federal regulators before sending money.

State banking information

Federal regulators
For more information on the legitimacy of a financial offer, contact federal regulators:

• North American Securities Administrators Association. The NASAA Web site is www.nasaa.org/home/index.cfm.
• Federal Deposit Insurance Corp. FDIC administers insurance for banks and savings and loans. You can contact the FDIC through its Web site, www.fdic.gov.
• Office of the Comptroller of the Currency, www.occ.treas.gov.
• Office of Thrift Supervision, www.ots.treas.gov.
• National Credit Union Administration, www.ncua.gov.