BLOOMINGTON - The saying goes: Risk reaps rewards. But these days, the mantra on Main Street is: No, thanks. In the wake of devastating losses on Wall Street, consumers are flocking to safer options for their money, including CDs and other savings deposits, said Andrea O'Connor, assistant vice president of deposit products for Bloomington-based State Farm Bank.

Customers want to make sure their money will be available if needed, and they want the security of the Federal Deposit Insurance Corp., she said.

"You know it's guaranteed. You'll get your principle and interest back at the end of the term," O'Connor said. "I guess sticking it under your mattress would be another alternative."

Twin City banks have noticed an uptick in customers who want to put their money somewhere less volatile - even if it means they could take a hit when the stock market rebounds or they'll earn less in those accounts than they would have a year or two ago.

"They know if they put a dollar in, they can get a dollar out," said Larry Maschhoff, president of Bank of Illinois in Normal.

O'Connor and Maschhoff agree the decision to put money in a CD or a money market savings account is personal.

Individuals should consider how soon they'll need the money and their risk tolerance, O'Connor said.

A CD or money market account could be a good choice for those who are really wary since it could take a while for the economy to recover, Maschhoff said.

But moving money to CDs or safer deposits may not always be the best idea because returns are not as great, said Mike Seeborg, economics professor at Illinois Wesleyan University in Bloomington. CD rates around 3 percent are fairly low, he said.

"They're thinking that rate is a lot better than the double-digit declines we've seen every week in the stock market. … People are getting really nervous and bailing out," Seeborg said.

While consumers should have a balanced portfolio, of which CDs and money market accounts play a role, it's not a good idea to take money out of equities after stocks decline, Seeborg said.

History shows ups and downs in the market, and typically low CD rates usually do not surpass inflation, he said.

Even as consumers show a preference toward bank deposits anyway, they won't commit for long, O'Connor said.

The bank, which offers CDs for as short as 90 days to as long as five years, has seen consumers pick six-month to 18-month terms when they previously didn't shy away from five-year deals, O'Connor said.

Customers whose CDs have just matured also could be disappointed when they see today's lower rates, she said.

The rate on a 12-month CD at State Farm Bank was 2.75 percent Thursday, down from about 4.75 percent a year ago. Customers who open a two-year CD will earn 3.9 percent, about a percent lower than the offer a year ago.

The bank also had a promotional 18-month CD with 3.75 percent interest on Thursday, which it hoped would entice customers with CDs that recently matured to keep their money in the product and to commit their dollars longer than a year, O'Conner said.

CD rates, which have been stable at about 3.5 percent in Bloomington-Normal, could decrease further, Maschhoff said. Money market savings accounts, which generally offer about 1 to 1.5 percent in the community, also could follow suit if the federal government cuts its key interest rate again, he said.

"If we as a nation could learn to save more, it clearly would be better," Maschhoff said.

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Growing wealth

Certificates of deposit and money market savings accounts are in demand at Twin City banks as investors flee or hesitate to enter the turbulent stock market. Such products have advantages and disadvantages, which is why it's important to examine your situation and have a balanced portfolio.

Benefits

• They're FDIC insured, and you're guaranteed to get what you put in, plus interest, out.

• Your money won't lose value before it could have the chance to grow.

• Good for short-term needs.

• They have a better return than lower-yielding savings and checking accounts.

Disadvantages

• Rates now almost keep up with inflation, and they typically don't outperform inflation much.

• Over the long term, the rate of return is lower than with stocks.

• If you move money from stocks, you could take a loss on your investment and then miss the rebound.