Yes, CDs are FDIC insured up to $250,000 per depositor per bank

Certificates of deposit held at banks that are members of the Federal Deposit Insurance Corporation (FDIC) are insured against bank failure. If your bank fails, the FDIC will reimburse you up to $250,000 per account category at that institution, even if the bank goes under and cannot return your money.

This protection applies to the full balance of your CD — principal plus any interest that has accrued — as long as the total does not exceed $250,000. The $250,000 limit is per depositor per bank, not per CD. If you have multiple CDs at the same bank, the FDIC adds them together when calculating whether you are within the limit.

Credit unions offer a similar protection called NCUA insurance (National Credit Union Administration), which also covers up to $250,000 per member per institution. The rules work the same way: your CD balance and accrued interest are protected as long as the total stays under $250,000.

Key Takeaways

  • FDIC insurance protects your CD balance and accrued interest up to $250,000 per depositor per bank if the bank fails.
  • If you have multiple CDs at the same bank, the FDIC counts them together toward your $250,000 limit.
  • Only banks that display the FDIC logo or are listed on the FDIC's website are covered; you can verify your bank's membership before opening a CD.
  • Credit unions use NCUA insurance instead of FDIC, but the coverage limit and rules are identical.
  • FDIC insurance does not protect you from market losses or interest rate changes — only from the bank's failure to return your money.

How the $250,000 limit works across multiple CDs

The FDIC does not insure each CD separately. Instead, it adds up all your deposits in the same account category at the same bank. If you have a $150,000 CD and a $120,000 CD at the same bank, the FDIC insures only $250,000 of the combined $270,000. The extra $20,000 is uninsured.

To keep all your money insured, you can spread your CDs across different banks. A $250,000 CD at Bank A and a $250,000 CD at Bank B are both fully insured because they are at different institutions. The FDIC limit resets at each bank.

You can also increase your coverage by using different account categories at the same bank — for example, a CD in your name alone is insured separately from a CD held jointly with a spouse, which is insured separately from a CD in a trust. Each category has its own $250,000 limit. However, most people with CDs under $250,000 do not need to worry about these distinctions.

Verifying that your bank is FDIC insured

Not every bank is FDIC insured. Most traditional banks are, but some online banks, credit unions, and non-bank financial institutions are not. Before you open a CD, confirm that the institution is covered.

The easiest way to check is to visit the FDIC's Bank Find tool at fdic.gov/resources/deposit-insurance/bank-find. Enter the bank's name and state, and the tool will tell you whether it is insured and what your coverage limit is at that institution. You can also look for the FDIC logo on the bank's website or ask a customer service representative directly.

If a bank is not FDIC insured, your CD is not protected against bank failure. This does not mean the bank is unsafe — many credit unions and online institutions are well-run and stable — but it does mean you are taking on the risk that the institution could fail and you would lose your money.

What FDIC insurance does and does not cover

FDIC insurance protects you only against the bank's failure. It covers the full balance of your CD plus any interest earned, as long as the total is under $250,000. If the bank closes, the FDIC steps in and pays you directly, usually within a few business days.

FDIC insurance does not protect you from other losses. If interest rates fall and your CD rate becomes uncompetitive, the FDIC does not compensate you. If you withdraw money early and lose the interest penalty, that is your loss, not the bank's failure. If you are the victim of fraud or theft, FDIC insurance does not apply — that is a matter for law enforcement and your bank's fraud department.

FDIC insurance also does not protect you if the bank makes a mistake with your account or if you dispute a transaction. Those issues are handled through the bank's customer service and dispute resolution process, separate from FDIC coverage.

FDIC insurance for joint and trust accounts

If you hold a CD jointly with another person, the FDIC insures up to $250,000 for the joint account as a separate category. This means you can have a $250,000 individual CD and a $250,000 joint CD at the same bank, and both are fully insured.

CDs held in a revocable trust (a trust you can change or cancel during your lifetime) are also insured separately, up to $250,000 per beneficiary named in the trust. If your trust names three beneficiaries, you can have up to $250,000 insured for each one. This structure is useful for people with large amounts to save, but it requires setting up a formal trust document.

Irrevocable trusts, accounts held for a minor, and accounts held as a payable-on-death (POD) beneficiary each have their own $250,000 limits as well. If you have a complex situation with multiple account types, the FDIC's website has detailed rules, or you can call the FDIC at 877-275-3342 to ask about your specific setup.

What happens if your bank fails

Bank failures are rare in the United States, but they do happen. When a bank fails, the FDIC takes control of the institution and either arranges for another bank to buy it or closes it down and pays depositors directly.

In most cases, your CD is transferred to the acquiring bank with the same terms and interest rate intact. You do not lose your CD or your interest. If no bank buys the failed bank, the FDIC pays you directly, usually within a few business days. You receive the full balance of your CD plus any accrued interest, up to the $250,000 limit.

The FDIC maintains a list of failed banks on its website. Bank failures have become less common since the 2008 financial crisis, but the insurance system remains in place to protect depositors if it happens again.

Frequently Asked Questions

If I have $300,000 to save, how do I keep all of it FDIC insured in CDs?

Open a $250,000 CD at one FDIC-insured bank and a $50,000 CD at a different FDIC-insured bank. The FDIC limit resets at each institution, so both amounts are fully covered. You can also use different account categories — for example, a $250,000 individual CD and a $50,000 joint CD at the same bank — but spreading across banks is simpler.

Does FDIC insurance cover my CD if I lose the bank's statement or forget my password?

Yes. FDIC insurance is tied to your account at the bank, not to your ability to access it. If you lose your statement or password, contact the bank to recover your account. Your CD and its insurance coverage remain in place. The FDIC does not require you to prove ownership — the bank's records are the proof.

Are online bank CDs FDIC insured?

Many online banks are FDIC insured, but not all. Check the bank's website for the FDIC logo or use the FDIC Bank Find tool to confirm before you open a CD. Online banks that are FDIC insured offer the same $250,000 protection as brick-and-mortar banks.

What if my CD matures after the bank fails?

If your bank fails before your CD matures, the FDIC will either transfer your CD to the acquiring bank with the same terms or pay you the balance plus accrued interest. You do not lose the interest you have earned up to the date of the failure. If the acquiring bank changes the terms, you usually have the right to withdraw without penalty.

Does FDIC insurance cover CDs held in a brokerage account?

No. CDs purchased through a brokerage are not FDIC insured, even if the underlying bank is FDIC insured. Brokerage CDs are covered by SIPC (Securities Investor Protection Corporation) instead, which has different rules and limits. If you want FDIC protection, open your CD directly with the bank, not through a broker.