Morgan Stanley's million dollar insured account not a great deal

In a bid to attract high-net-worth clients, Morgan Stanley (MS) is touting a new account insured up to $1 million by the FDIC. The company is able to do that because it pays an additional fee to the FDIC for the excess insurance above the normal $250,000.

There's a huge catch though -- the account holder can only earn up to 0.5 percent interest. To compare, the national average for CDs according to Bankrate.com is 1.59 percent for a six-month CD, and 2.60 percent for a five-year CD. There may be even better rates out there if investors are willing to do a little research, as long as they make sure they deposit their cash in an FDIC-insured financial institution.