I have been looking for a safe place to park my cash. I found a bank in my area which offers better rates than my primary bank does.

I checked its rating at bauerfinancial.com. It has two stars.

Currently, it is offering 11 mo CD with 4.11% rate (min $10,000). The rate is attractive, but the rating is not. I also found out at reuters.com that it's portfolio has Mortgate-backed Securities.

Its rating and holding concerns me, but it is FDIC insured. Shoud I worry about these negatives? Or go ahead and just put money in the bank?

That said, a lower rated bank isn't able to raise cd money at the going market rates. Lower rated banks have to pay the higher, and to you, more attractive rates in order to raise money.

You say you want a safe place to park your cash. And then you say you want to park it in a 2star bank. Something doesn't mesh. If it was my money, I'd save the hassle/worry and go with a more stable bank. As you can see from the attached list, the FDIC does close banks.

I guess I don't have to worry about it too much.