Are CDs FDIC Insured? Limits By Ownership Category, With Worked Examples

Yes. CDs opened at an FDIC-insured bank are insured up to $250,000 per depositor, per insured bank, for each account ownership category, and the limit covers principal plus accrued interest. Credit union CDs, called share certificates, carry the same $250,000 protection from the NCUA. Because coverage is set by ownership category, a single saver, a joint couple, and a trust owner at the same bank can each be insured for different totals.

Key takeaways

• The $250,000 limit applies to the total of all your deposits in one ownership category at one bank, not to each CD.
• Interest counts. A CD that starts under $250,000 can grow past it before maturity.
• To insure more, spread money across separately chartered banks, use different ownership categories, or add beneficiaries to a trust or payable-on-death CD.

Are CDs FDIC insured?

Yes, a CD at an FDIC-insured bank is insured because a CD is a deposit, the same as a checking or savings account. You do not apply for coverage or pay for it. Coverage is automatic and free to you, because banks pay the FDIC’s assessments. It starts the moment you fund a CD at an FDIC-insured bank.

Coverage has three conditions:

1. The bank is FDIC insured. Check the bank’s legal name and charter, not just its logo.
2. Your balance is within the limit for its ownership category. Anything above $250,000 in one category at one bank is uninsured.
3. The product is a deposit. A bond fund or annuity sold by the same bank’s investment arm is not a deposit and is not FDIC insured, even if you bought it at a bank branch.

If all three conditions are met, your CD is covered. Credit union CDs — called share certificates — follow a parallel set of rules under a different insurer, covered in the credit union section below.

The rule: $250,000 per depositor, per insured bank, for each account ownership category

The $250,000 limit is not per CD or per account. The FDIC adds together every deposit you hold in the same ownership category at the same bank, including checking, savings, money market accounts, and CDs, and insures the total up to $250,000.

The rule has three parts. Each one changes how much of your money is covered.

Per depositor

Coverage follows the person, not the account. If you open three CDs in your own name at one bank, the FDIC treats them as one $250,000 bucket. It does not matter whether those CDs have different terms, rates, or account numbers. Your spouse has a separate bucket for accounts in their own name, so a married couple with individual CDs at the same bank has two single-account limits, not one.

Per insured bank

Each separately chartered bank gets its own $250,000 limit. Opening a second CD at a different branch of the same bank does not add coverage. Some banks operate several brand names under one charter, so check the charter in the FDIC BankFind Suite, not the logo. When two banks merge, deposits from the acquired bank stay separately insured for at least six months, and CDs stay separate until their first maturity after that grace period.

For each account ownership category

The FDIC sorts every deposit into an ownership category based on how the account is titled. Each category has its own limit, which is how one person can have more than $250,000 insured at a single bank. A CD in your name alone, a CD you own jointly, and an IRA CD can each be insured separately at the same bank. The table below lists the categories that matter for most CD savers.

Ownership category	Who it covers	FDIC coverage
Single accounts	Accounts owned by one person with no beneficiaries (includes sole proprietorships)	$250,000 per owner
Joint accounts	Accounts owned by two or more living people with equal withdrawal rights	$250,000 per co-owner
Certain retirement accounts	IRAs (traditional, Roth, SEP, SIMPLE), self-directed 401(k) and Keogh plans, Section 457 plans	$250,000 per owner
Trust accounts	Revocable trusts, payable-on-death accounts, irrevocable trusts	$250,000 per owner per unique eligible beneficiary, max $1,250,000 per owner
Corporation, partnership and unincorporated association accounts	Business and organization accounts	$250,000 per entity
Employee benefit plan accounts	Pension and profit-sharing plan deposits	$250,000 per plan participant’s noncontingent interest
Government accounts	Public funds held by an official custodian	$250,000 per official custodian (more in some cases)

Does interest count toward the $250,000 limit?

Yes, FDIC coverage applies to principal plus accrued interest, so the interest your CD earns counts toward the same $250,000 limit as your deposit. If your bank fails, the FDIC covers principal and interest through the date of failure, but only up to the limit.

This matters most for long-term CDs. A CD that starts safely under the limit keeps growing until it matures. On a 5-year CD, that growth can add tens of thousands of dollars, which can push the balance into uninsured territory before you notice. Higher APYs and longer terms both shrink the room you have. See how CD rates change by term to understand why longer CDs usually need more headroom.

Accrued interest counts toward the limit. To keep a CD fully insured through maturity, the opening deposit should leave room for the interest it will earn: at an illustrative 4.00% APY, that is about $240,385 for a 1-year CD and about $205,482 for a 5-year CD.

CD term	Maximum opening deposit to stay under $250,000 at maturity (illustrative 4.00% APY, interest left in the CD)
1 year	$240,385
2 years	$231,139
3 years	$222,249
5 years	$205,482

This table assumes you have no other deposits in the same ownership category at that bank. If you also keep $20,000 in savings there, subtract it. A higher APY than the illustrative 4.00% lowers each figure. Use the CD earnings calculator to check the maturity value of your exact deposit, rate, and term.

Worked example 1: single owner

For a single owner, every deposit in your name alone at one bank shares one $250,000 limit. The three cases below show that rule under the limit, over it, and pushed over it by interest. Names are fictional.

Case 1A: one CD plus savings, under the limit

A CD and a savings account in the same name at the same bank are added together. Maria has a $180,000 CD and $60,000 in savings at Bank A, both in her name only. Both are single accounts, so the FDIC adds them: $240,000, fully insured. After one year at an illustrative 4.00% APY the CD grows to $187,200, bringing her total to $247,200, still insured (savings interest ignored for simplicity).

Account	Ownership category	Balance	Insured	Uninsured
CD + savings (Bank A)	Single	$240,000	$240,000	$0

Case 1B: a CD ladder that crosses the limit

Five CDs do not mean five limits. James builds a ladder of five $60,000 CDs at Bank A, all in his name. His $300,000 is one single-account total, so $50,000 is uninsured. Moving two rungs to Bank B fixes it with room for interest: $180,000 at Bank A and $120,000 at Bank B, both fully insured.

Account	Ownership category	Balance	Insured	Uninsured
Five CDs, before (Bank A)	Single	$300,000	$250,000	$50,000
Three CDs, after (Bank A)	Single	$180,000	$180,000	$0
Two CDs, after (Bank B)	Single	$120,000	$120,000	$0

Case 1C: interest pushes a CD over the limit

A CD that opens under the limit can grow past it. Priya opens a $245,000, 5-year CD at an illustrative 4.00% APY. It starts insured. After one year the balance is $254,800, so $4,800 is uninsured. By maturity it reaches about $298,080, leaving about $48,080 uninsured. Opening at $205,482 or less would have kept the whole balance covered.

Account	Ownership category	Balance	Insured	Uninsured
5-year CD, after year 1	Single	$254,800	$250,000	$4,800
5-year CD, at maturity	Single	$298,080	$250,000	$48,080

Worked example 2: joint owners

Joint account coverage is $250,000 per co-owner, so a CD owned jointly by two people is insured up to $500,000. Each co-owner’s shares of every joint account at the same bank are added together before the $250,000 limit applies.

A CD qualifies for joint coverage when it meets these requirements:

• All co-owners are living people (not trusts, businesses, or estates).
• All co-owners have equal rights to withdraw the money.
• Each co-owner has signed the account signature card. This signature requirement does not apply to CDs.

Case 2A: one joint CD

A joint CD for two people is covered up to $500,000. Sam and Lee own a $400,000 joint CD at Bank A. Each owns an equal share of $200,000, which is under each person’s $250,000 joint limit. The full $400,000 is insured.

Account	Ownership category	Balance	Insured	Uninsured
Joint CD (Bank A)	Joint	$400,000	$400,000	$0

Case 2B: a couple using three categories at one bank

A couple can insure $1,000,000 at one bank by combining single and joint accounts. Sam and Lee each keep a $250,000 CD in their own name and share a $500,000 joint CD, all at Bank A. Single and joint are separate categories, so $1,000,000 is insured at one bank. Note that these balances sit exactly at the limit, so any interest earned would be uninsured. In practice, leave headroom.

Account	Ownership category	Balance	Insured	Uninsured
Sam’s CD	Single	$250,000	$250,000	$0
Lee’s CD	Single	$250,000	$250,000	$0
Sam and Lee joint CD	Joint	$500,000	$500,000	$0
Total at Bank A		$1,000,000	$1,000,000	$0

Case 2C: one person in two joint accounts

A person who co-owns two joint CDs at one bank gets one $250,000 joint limit, not two. Sam also shares a $200,000 joint CD with his mother at Bank A. The FDIC adds Sam’s shares across both joint accounts: $200,000 from the account with Lee plus $100,000 from the account with his mother, or $300,000. Sam has $50,000 uninsured. Lee ($200,000) and Sam’s mother ($100,000) are fully insured.

Co-owner	Ownership category	Share of joint CDs at Bank A	Insured	Uninsured
Sam ($200,000 with Lee + $100,000 with mother)	Joint	$300,000	$250,000	$50,000
Lee	Joint	$200,000	$200,000	$0
Sam’s mother	Joint	$100,000	$100,000	$0
Both joint CDs combined		$600,000	$550,000	$50,000

Worked example 3: over-limit balances

The only way to fully insure more than $250,000 is to use more banks, more ownership categories, or a network that does the spreading for you. Pat has $750,000 to put in CDs. The table compares four ways to place it, with balances checked after five years at an illustrative 4.00% APY.

Option	How the $750,000 is placed	Insured	Uninsured	5-year balance check at illustrative 4.00% APY
A. One bank, one category	$750,000 single CD at Bank A	$250,000	$500,000	Not needed; already over the limit
B. Four banks	$187,500 single CD at each of Banks A, B, C, D	$750,000	$0	$228,122 per bank, under limit
C. One bank, three categories	$200,000 single CD; $200,000 IRA CD; $350,000 POD CD naming 2 children (coverage $500,000)	$750,000	$0	$243,331 / $243,331 / $425,829, all under each limit
D. Network or brokered CDs	Deposit placed through a reciprocal deposit network or brokered CDs across many issuing banks	$750,000 if no bank overlap	$0 if no overlap	Confirm the issuing bank list against banks you already use

Option A leaves $500,000 exposed. If Bank A failed, Pat would receive $250,000 from the FDIC and a receivership claim on the bank’s remaining assets for the rest. That claim may be paid back partly, fully, or not at all, often over time, with no guarantee.

Option B is the simplest fix. Each bank is a separate charter, so each $187,500 CD is insured on its own, with room for five years of interest. Compare FDIC-insured CD rates to find banks paying similar yields.

Option C keeps everything at one bank by using three ownership categories. It only works if Pat already has retirement money to hold in an IRA CD. IRA coverage does not apply to new money you simply call retirement savings. Trust coverage also depends on correct titling: the POD CD must name the two children as eligible beneficiaries in the bank’s records.

Option D lets one bank place your deposit across many network banks so each slice stays under $250,000. Reciprocal deposit networks and brokered CDs both work this way. Ask for the list of banks used, because money you already hold at any of them counts toward the same limit.

Do beneficiaries increase FDIC coverage on a CD?

Since April 1, 2024, FDIC trust account coverage is $250,000 per owner for each unique eligible beneficiary, up to five beneficiaries, for a maximum of $1,250,000 per owner per bank. Revocable trusts, payable-on-death accounts, and irrevocable trusts are combined into one trust category.

So yes, naming beneficiaries on a trust or payable-on-death (POD) CD increases coverage. Naming beneficiaries on an IRA does not, because retirement accounts are insured per owner only.

Unique eligible beneficiaries	Maximum coverage per owner, per bank
1	$250,000
2	$500,000
3	$750,000
4	$1,000,000
5 or more	$1,250,000

Dana opens a $700,000 payable-on-death CD at Bank A naming her three children. Three unique beneficiaries give her $750,000 of trust coverage, so the full $700,000 is insured. Naming a sixth child would not raise the cap above $1,250,000. Remember that all of Dana’s trust and POD accounts at Bank A share this one limit. Credit unions adopt the same per-beneficiary structure for NCUA coverage on December 1, 2026.

Are credit union CDs insured?

Yes, credit union CDs are insured by the NCUA, not the FDIC, with the same $250,000 structure. A share certificate is a credit union’s version of a CD, and the NCUA insures it through the National Credit Union Share Insurance Fund. NCUA coverage is backed by the full faith and credit of the U.S. government, the same as FDIC coverage.

	Bank CD	Credit union share certificate
Insurer	FDIC (Deposit Insurance Fund)	NCUA (National Credit Union Share Insurance Fund)
Standard limit	$250,000 per depositor, per insured bank, per ownership category	$250,000 per member, per insured credit union, per ownership category
Trust coverage	$250,000 per unique beneficiary, max $1,250,000 (since April 1, 2024)	Same structure effective December 1, 2026
Backing	Full faith and credit of the U.S. government	Full faith and credit of the U.S. government
Check status	FDIC BankFind Suite	NCUA Research a Credit Union

Because the two funds are separate, $250,000 at a bank and $250,000 at a credit union are insured independently. CD Valet lists certificates from both, so you can spread a large balance across banks and credit unions without giving up rate. Browse [credit union share certificate rates]([URL TBD]).

Are brokered CDs FDIC insured?

Yes, brokered CDs are FDIC insured if the issuing bank is FDIC insured and the broker meets pass-through requirements. A brokered CD is a bank CD bought through a brokerage. Pass-through coverage applies when the broker’s records show the custodial relationship and identify you as the underlying owner.

Two warnings apply. First, coverage is based on the issuing bank, so a brokered CD from Bank A and a CD you opened directly at Bank A share one $250,000 limit. Second, if you sell a brokered CD before maturity on the secondary market and its price has dropped, that loss is not insured.

What happens to a CD if the bank fails?

If an FDIC-insured bank fails, your insured CD balance is paid, usually within a few days. Since the FDIC was founded in 1933, no depositor has lost a penny of FDIC-insured funds.

The FDIC handles a failure in one of two ways. It either moves your deposits to an acquiring bank, where you have immediate access to insured funds, or it pays you directly. Coverage includes principal and interest through the date the bank closes. An acquiring bank may change the rate on your CD; if it does, you can withdraw your insured funds without an early withdrawal penalty. Any amount over the limit becomes a claim against the failed bank’s receivership, which may be paid partly, fully, or not at all over time.

How to check that a bank or credit union is federally insured

You can confirm a bank or credit union’s insurance in a few minutes with free government tools:

1. Search the bank’s legal name in the FDIC BankFind Suite and note its charter. Brand names that share a charter share one limit.
2. For a credit union, use NCUA’s Research a Credit Union tool.
3. Enter your accounts in the FDIC’s Electronic Deposit Insurance Estimator (EDIE) to see your exact coverage by category.

Each CD Valet bank listing shows the institution’s insurer, and you can check a bank’s CD rates and insurer on its detail page. Read how CD Valet verifies rates for more on our data. [Wording pending confirmation from Kai, per brief Section H.]

What FDIC insurance does not cover

FDIC insurance covers deposits only. It does not cover:

• Stocks, bonds, and mutual funds
• Annuities and life insurance
• Municipal securities
• U.S. Treasury bills, bonds, and notes (backed by the government directly, not insured)
• Safe deposit box contents
• Crypto assets

FDIC insurance only protects you against the failure of an insured bank. If you use a fintech app that is not a bank and holds your money at a partner bank, FDIC insurance does not protect you if the app itself fails.

The bottom line

CDs at FDIC-insured banks are insured up to $250,000 per depositor, per insured bank, for each account ownership category, and that limit includes interest. If your balance is near or above the limit, spread it across banks or ownership categories before you lock in a term. Compare the best insured CD rates to find a second or third bank.

Frequently asked questions