In Brief

By Aixa M. Pascual

HAPPY MUNI YEAR Low inflation and high yields are making municipal bonds an attractive buy. The yield on benchmark munis reached 5.99% a few weeks ago, a peak for the year. Those returns have slipped a bit since, but munis still offer relatively high rates. They are yielding more than 90% of a comparable Treasury bond, the result in part of an abundant supply. "Historically, muni yields are not this close to Treasury yields with the same maturity," says Mark Tenenhaus, director of municipal research for Morgan Stanley Dean Witter. The kicker is that the muni bonds are tax free.

KIDDIE CARD Will technology-savvy teens take to the cashless society? Visa will soon find out. The company has launched a new debit card aimed at teenagers. The Visa PocketCard allows a parent or employer to make funds available to his or her "customer" electronically. "It is an account, but it's virtual," says William Scheurer, CEO of PocketCard Inc. You can transfer funds--via phone or online--from your bank account to an Internet one, so your teens can prowl the malls and the Web or chow down at Chili's. You can apply for this card only online at www.pocketcard.com The annual cost for the PocketCard is a nonvirtual $15 for family accounts, plus some user fees.

BE DOUBLY SURE The Federal Deposit Insurance Corporation insures deposits up to $100,000, but when banks merge, the insurance does not add up with it. Do you have separate accounts totaling more than $100,000 at two merging financial institutions? First, congratulations. Second, remember the combined amount will be covered only until six months after the merger is completed. Beyond that, deposits held under the same name or type of account are insured only up to the $100,000 limit. "It's up to you to restructure your accounts during the six months," says FDIC counsel Christopher Hencke. If you have single-ownership accounts, you can convert one to a joint account.

--By Aixa M. Pascual