Are CDs FDIC insured?
Understanding FDIC insurance protection and how it applies to CDs
Key takeaways
$250,000 limit per depositor
covers CDs up to $250,000 per depositor, per bank, per ownership category (single or joint ownership, for example)
at the same bank will count toward the $250,000 limit, so it’s important not to exceed this total.
by spreading CDs across different banks or ownership categories.
What is the FDIC and what does it cover?
First, let’s look at what the FDIC is. Short for Federal Deposit Insurance Corporation, the FDIC is an independent government agency established in 1933 to protect consumers in the event of a bank failure. Its primary role is to insure deposits at FDIC-member banks.
The FDIC covers up to $250,000 per depositor, per insured bank, per ownership category. The insurance protects both the principal and any accrued interest up to the limit. If your bank fails, the FDIC guarantees payment of your insured deposits, typically reimbursing the funds within a few business days.
Here’s a handy overview of what is and isn’t covered by the FDIC within the banking industry.
FDIC-insured accounts | Not insured by FDIC |
Checking accounts | Stocks, bonds, and mutual funds |
Savings accounts | Crypto assets |
Money market deposit accounts | Annuities |
Certificates of Deposit | Life insurance policies |
Certain retirement accounts (such as IRAs held in deposit accounts) | Municipal securities |
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When are CDs FDIC insured?
If you’re wondering, “Are bank CDs FDIC insured?”, the answer is yes, as long as they are issued by a bank that is a member of the FDIC. The insurance limit is $250,000 per depositor, per ownership category, so as long as your CD remains under that limit (taking into account any other products you hold with the same bank), your CD will be fully protected.
For example, you could have the following products at the same FDIC-insured bank and remain fully insured:
$100,000 in a CD
$40,000 in a savings account
$100,000 in a money market account
You should also consider the interest earned on your savings account(s). If the interest earned raises your total balance over the $250,000 limit, any amount above that may not be insured.
What are FDIC ownership categories?
FDIC ownership categories refer to the different ways deposit accounts can be owned or titled, which determine how FDIC insures the funds. Each category is insured separately. Common FDIC ownership categories include:
Single accounts: Owned by one person, with no beneficiaries.
Joint accounts: Owned by two or more people, each with equal rights to withdraw funds.
Revocable trust accounts: Includes payable-on-death (POD) and living trust accounts.
Business accounts: Accounts owned by corporations, partnerships, or unincorporated associations.
Each of these categories is eligible for up to $250,000 in coverage per person, per insured institution. So, if you use multiple ownership categories, you may be able to increase your total FDIC coverage at a single institution.
When might a CD not be FDIC insured?
Keeping your savings secure is essential, so it’s important to check that a certificate of deposit is insured by FDIC before you open one. In terms of what CDs are not FDIC insured, here are a few examples:
A CD that is issued by a non-bank financial institution, such as a brokerage firm that isn’t FDIC-insured
A CD that is issued by a foreign bank or a non-U.S. institution, which falls outside the FDIC’s jurisdiction
You exceed the FDIC limit at a single bank. For example, if you already have multiple savings accounts with a balance totaling more than $250,000 in the same ownership category
Are CDs insured at credit unions?
Now that we’ve covered the FDIC and CDs at banks, what about CDs at credit unions? Credit unions are typically protected by the National Credit Union Administration (NCUA), a U.S. government agency that insures deposits at federally insured credit unions.
In terms of how CDs are insured at credit unions, the NCUA operates similarly to the FDIC, offering protection of up to $250,000 per depositor, per credit union, and per ownership category. This includes both the principal and any interest earned on a CD.
Read more about the differences between banks and credit unions.
What happens to my CD if my bank fails?
If a CD account is FDIC insured, this is what typically happens in the case of bank failure:
The FDIC steps in as the insurer.
They will typically reimburse your insured deposit (both the principal and the interest earned) within a few business days.
The FDIC will either issue you a check with the full insured amount or fund a new account in your name at another bank offering FDIC CD protection.
Remember, if your total deposits (including accrued interest) exceed the FDIC insurance limit, the excess amount may not be recovered.
Are CDs FDIC Insured?
Can I lose money on a CD?
Generally, you can’t lose money on a CD, as long as it’s FDIC-insured (or NCUA-insured for credit unions) and you hold it until maturity. However, if your bank allows you to make a withdrawal before maturity, you may have to pay a penalty, which could reduce your earnings.
You may lose money if the issuing institution fails, and:
- The CD is not insured (e.g., issued by a non-FDIC institution), or
- Your total deposits at the bank exceed the FDIC coverage limit, and the uninsured portion is lost.
Are all CDs FDIC-insured?
Only CDs issued by a bank that is a member of the FDIC are insured, up to $250,000 per depositor, per ownership category. CDs issued by a credit union that is a member of the NCUA are also insured up to $250,000 per depositor, per ownership category. It’s essential to do your own research and ensure that your bank or credit union is covered.
Are multiple CDs FDIC insured?
Yes, multiple CDs can be fully FDIC insured as long as your total deposits per bank per ownership category stay within the $250,000 limit or you spread them across multiple FDIC-insured banks or categories.
Does FDIC cover interest earned?
Yes, the interest earned on federally insured CDs is covered as long as the total (both principal and accrued interest) is within the $250,000 limit as of the date the bank fails.
For example, if you opened a CD with a principal balance of $240,000 and earned $10,000 in interest, you would be fully insured, as the total remains under the insurance limit.
How do I know if I’m fully covered?
Checking if you’re fully FDIC insured is simple to do. You can visit the FDIC’s Electronic Deposit Insurance Estimator to confirm that any banks you hold financial products with are FDIC-insured. Add up all your deposits at the bank by ownership category (for example, individual, joint, or trust) and ensure the total doesn’t exceed $250,000.
Can I increase my FDIC coverage if I have more than $250,000?
Yes, you can use a strategic approach to ensure all of your money is protected if you have more than $250,000 in savings. To increase your certificate of deposit insurance, you could consider:
- Using multiple ownership categories at the same bank, for example, $250,000 in a single account, and $250,000 in a retirement account
- Opening an account with different FDIC-insured banks. FDIC coverage applies per bank, so you can spread your funds across multiple banks to increase your overall protection.
- Using trust arrangements or payable-on-death (POD) accounts, which allow you to name multiple beneficiaries and cover up to $250,000 per unique beneficiary.
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*APY means Annual Percentage Yield. APY is accurate as of April 26, 2026. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank, and FDIC deposit insurance only covers the failure of an insured bank.
Raisin is not an NCUA-insured credit union. NCUA deposit insurance only covers the failure of an insured credit union.
Raisin does not hold any customer funds. Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered by the applicable bank or credit union through Raisin.com. Each customer also authorizes the Service Bank to move funds among the various banks and credit unions at the customer’s request. First International Bank & Trust (FIBT), Member FDIC, is the Service Bank. Bell Bank and Starion Bank, each Member FDIC, are the Custodial Banks.
†Based on $250,000 in FDIC or NCUA insurance coverage per insurable category of ownership at each partner bank or credit union on the Raisin platform (each a "Product Bank"), when aggregated with all other deposits held by you at such Product Bank and in the same insurable category. Deposits made through Raisin will be eligible to receive deposit insurance from the FDIC or the NCUA (each a "Deposit Insurer") in accordance with and up to the maximum amount permitted by law at each Product Bank. Raisin is not a bank or credit union and does not hold any customer funds. Funds are held at FDIC-insured banks and NCUA-insured credit unions. Deposit insurance covers the failure of an insured bank or credit union. Certain conditions must be satisfied for pass through deposit insurance coverage to apply. Customers may choose to deposit funds with identically registered accounts at different Product Banks on the Raisin platform to be eligible for Deposit Insurer coverage up to $10 million for individual accounts and $20 million for joint accounts when at least 40 Product Banks are utilized. Please be aware, however, that any deposits you have at a Product Bank, whether through the Raisin platform or outside the Raisin platform, that you may hold in the same capacity (such as in an individual capacity or joint capacity) count toward the applicable Deposit Insurer's deposit insurance maximum amount, and any such amounts that you hold in the same capacity at a Product Bank that exceed the maximum insurance coverage by the applicable Deposit Insurer will not be insured. For more information on FDIC deposit insurance, please see here. For more information on the NCUA share insurance fund, please see here. You are solely responsible for monitoring the amount of funds you have on deposit at each a Product Bank, whether through the Raisin platform or outside the Raisin platform, to confirm that the deposits you hold in the same capacity at each Product Bank do not exceed the maximum deposit insurance coverage provided by the applicable Deposit Insurer.