Want to keep your family's money safe?

Unfortunately, there is no perfectly safe investment. But it can pay to examine the quality of the guarantee you're getting.

U.S. Treasury bills, notes and bonds, which are directly backed by the U.S. government, are considered to have the lowest risk.

You typically can earn more today on a bank CD, which also carries a direct U.S. government guarantee through the FDIC -- provided that you follow the FDIC's very specific rules. That agency covers you to $100,000 per depositor only if your bank fails. If you have more than $100,000 to invest, you might consider investing in CDs at other banks.

Or, you can boost FDIC coverage further by very carefully titling deposits in different account categories. Certain retirement account deposits, such as IRAs, are insured separately to $250,000.

Other categories that let you boost your FDIC coverage include: Joint accounts, which are separately insured. Beneficiaries of trusts also may be insured to $100,000 apiece, but only under very specific conditions.

Don't like the interest rates at your local bank? Credit unions, which require membership, have the same U.S. government guarantee if backed by the National Credit Union Share Insurance Fund.

You also may be able to insure more than $100,000 at a bank by going through a broker, who can distribute excess funds to different banks so that all funds are FDIC-insured. But keep good records. The FDIC may need them if the bank fails. Also, stay with brokerages you know and trust.

There are other types of low-risk investments to consider.

The Government National Mortgage Association, which issues mortgage-backed securities, is backed by a direct U.S. government guarantee.

U.S. Savings Bonds, such as Treasury securities, are backed directly by Uncle Sam. For as little as $25, you can invest through your bank, the nearest Federal Reserve Bank or from the Bureau of Public Debt. You can cash in your savings bond to pay for your child's college education and you needn't pay income tax on the earnings either.

Some government agencies that issue bonds fall a notch lower on the safety ladder. Those include the Small Business Administration, Federal National Mortgage Association (Fannie Mae) and Freddie Mac.

How much the government would stand behind them was put to the test recently, when the Federal Reserve and the U.S. Treasury stepped in to financially strengthen Fannie Mae and Freddie Mac.

Beware, though, that a direct government guarantee doesn't necessarily make your investment risk-free. While it may protect your principal against default, it does not protect you from price fluctuations if you need to sell. Even bank CDs have withdrawal penalties if you cash out early.

Bond prices move in opposite directions to interest rates. So, for example, if interest rates rise 1 percent and you needed to sell, the value of a long-term Treasury bond could drop about 12 percent. Of course, the opposite also could happen.

Once you stray from direct government guarantees, it's up to you to evaluate the strength of the company backing your investment and decide whether the potential reward is worth the risk.

Here are some points to consider:

• Anytime you are not buying an investment directly from its source, scrutinize the intermediary involved and any guarantees behind it.

• Check newspapers and online message boards. Be wary of companies or investments that have been touted as having problems.

• Don't invest in anything you don't understand. Know how much the price of your investment can fluctuate.

• Insured municipal bonds yield about one quarter of one percent less than uninsured bonds. Nevertheless, the slight rate difference may be worth the added peace of mind. Municipal bond insurance companies recently have come under financial pressure, but they have beefed up their capital reserves to cover potential defaults. Historically since the 1960s, the default rate on insured municipal bonds is less than one-half of 1 percent of all issuers, according to Standard &Poor's.

• The financially strongest insurance companies carry A++ and A+ ratings by A.M. Best.