Your Guide to Understanding FDIC Insurance at CIT Bank

When it comes to entrusting your hard-earned savings with a financial institution, safety and security are paramount. Among the most trusted banking institutions in the United States is CIT Bank, known for its competitive rates and innovative financial products. However, before making a decision, it’s essential to address the critical question: is CIT Bank FDIC insured? The answer is a resounding yes, providing you with the ultimate peace of mind that your deposits are safeguarded by the full faith and credit of the United States government.

The Federal Deposit Insurance Corporation (FDIC) is an independent agency established by the United States government to provide deposit insurance to customers of FDIC-insured banks. This insurance ensures that depositors’ funds up to $250,000 per depositor, per insured bank, are protected in the unlikely event of a bank failure. By choosing an FDIC-insured institution like CIT Bank, you can rest assured that your deposits are shielded against financial setbacks and market fluctuations that could affect the solvency of individual banks.

Additionally, CIT Bank is a member of the Federal Reserve System, which further enhances its stability and credibility. The Federal Reserve is the central banking system of the United States, responsible for managing the nation’s monetary policy and regulating financial institutions. As a member of the Federal Reserve System, CIT Bank is subject to stringent oversight and regulatory compliance, providing an extra layer of assurance for its customers. Therefore, when you bank with CIT Bank, you can confidently entrust your finances to an institution that meets the highest standards of safety, security, and financial integrity.

Coverage Limits and Protection Provided by FDIC Insurance

Understanding Deposit Insurance

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system. FDIC insurance is a vital part of this mission, providing protection to depositors against the loss of their funds in the event of a bank failure.

How Much is Covered?

FDIC deposit insurance covers up to $250,000 per depositor, per insured bank, for each account ownership category. This includes deposits in checking accounts, savings accounts, money market accounts, and CDs (certificates of deposit).

Ownership Categories

FDIC coverage is determined by the ownership category of the account, rather than the individual depositor. The FDIC recognizes six different account ownership categories:

Single Accounts: Accounts owned by one individual with no joint owners.
Joint Accounts: Accounts owned by two or more individuals in which the funds belong to all joint owners.
Revocable Trust Accounts: Accounts established for the benefit of a beneficiary during their lifetime.
Irrevocable Trust Accounts: Accounts established for the benefit of a beneficiary beyond their lifetime.
Business Accounts: Accounts owned by businesses, corporations, partnerships, or other legal entities.
Government Accounts: Accounts owned by federal, state, or local government agencies.

Insurance Limits for Each Category

Single Accounts: Up to $250,000 per depositor
Joint Accounts: Up to $250,000 per depositor. For a joint account with two owners, this means up to $500,000 total coverage.
Revocable Trust Accounts: Up to $250,000 per depositor, per account. If the depositor has multiple revocable trust accounts at the same bank, each account is insured up to $250,000.
Irrevocable Trust Accounts: Up to $250,000 per beneficiary, per account. This coverage applies even if the beneficiary has multiple irrevocable trust accounts at the same bank.
Business Accounts: Up to $250,000 per depositor. This coverage applies to each individual business owner or authorized representative.
Government Accounts: Up to $250,000 per government entity. This coverage applies to each specific government account, regardless of the number of government entities or agencies.

Exclusions from Coverage

While FDIC insurance covers the vast majority of deposit accounts, there are certain types of deposits that are not eligible for coverage. These include:

Investments, such as stocks, bonds, or mutual funds.
Real estate or precious metals.
Deposits made by foreign governments.
Deposits in excess of the per-depositor coverage limits.

FDIC Insurance Coverage for Accounts at CIT Bank

CIT Bank is a member of the Federal Deposit Insurance Corporation (FDIC), which provides deposit insurance up to $250,000 per depositor, per insured bank. FDIC insurance is backed by the full faith and credit of the United States government, making it one of the safest forms of financial protection available.

Types of Accounts Covered by FDIC Insurance

Deposit Accounts

FDIC insurance covers deposit accounts such as checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). These accounts are used to store and manage funds, and they typically offer a range of interest rates and features.

Other Accounts

In addition to deposit accounts, FDIC insurance may also cover certain other accounts, including:

Money orders
Cashier’s checks
Official checks
Traveler’s checks
Certain types of pre-paid cards

These accounts are typically used for making payments or transferring funds, and they are typically not designed to store large amounts of money.

Limits on FDIC Insurance Coverage

FDIC insurance is limited to $250,000 per depositor, per insured bank. This means that if CIT Bank fails, each depositor is insured up to $250,000 for the total amount of their deposits in all types of covered accounts.

However, there are some exceptions to this limit. For example, certain types of accounts, such as joint accounts and trust accounts, may be insured for more than $250,000. Additionally, the FDIC may provide additional coverage for certain types of deposits, such as those made by the government or certain non-profit organizations.

How to Calculate Your FDIC Insurance Coverage

To calculate your FDIC insurance coverage, you need to add up the total amount of your deposits in all types of covered accounts at CIT Bank. This includes deposits in checking accounts, savings accounts, money market accounts, CDs, and certain other accounts.

Once you have totaled your deposits, compare that amount to the FDIC insurance limit of $250,000. If your deposits exceed the limit, you may want to consider spreading them out among different banks to ensure that they are fully insured.

Additional Protection for Larger Deposits

If you have deposits that exceed the FDIC insurance limit, you can take steps to protect your funds. One option is to spread your deposits among different banks. Another option is to invest in other types of financial products, such as bonds or stocks.

It is important to remember that FDIC insurance is only one form of financial protection. You should also consider other factors, such as the financial stability of the bank and the terms of your deposit accounts, when making decisions about how to manage your money.

Understanding the FDIC and Its Role

The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency that protects depositors’ funds in FDIC-insured banks. It was created in 1933 in the wake of the Great Depression to restore trust in the banking system.

The FDIC provides insurance coverage to deposits held in checking accounts, savings accounts, money market deposit accounts, and certain other time deposits. This coverage is designed to protect depositors’ funds up to a maximum of $250,000 per depositor, per insured bank.

Types of CIT Bank Accounts Covered by FDIC Insurance

CIT Bank offers a range of deposit accounts and financial products to its customers. All of its deposit accounts are insured by the FDIC up to the maximum coverage limits. The following are the main types of CIT Bank accounts that are FDIC insured:

checking accounts

CIT Bank offers various checking accounts designed to meet the needs of different customers. These accounts allow customers to make deposits, withdraw funds, write checks, and access their funds through online banking and mobile apps. All of CIT Bank’s checking accounts are FDIC insured, providing peace of mind to depositors.

savings accounts

CIT Bank’s savings accounts offer a convenient way to save money and earn interest. They are FDIC insured, ensuring that depositors’ funds are protected up to the maximum coverage limits. CIT Bank’s savings accounts offer competitive interest rates and flexible terms, making them an attractive option for individuals and businesses looking to grow their savings.

money market deposit accounts

CIT Bank’s money market deposit accounts (MMDAs) combine the features of a checking account and a savings account. They offer a higher level of liquidity than traditional savings accounts, while also allowing customers to earn interest on their deposits. Like checking and savings accounts, CIT Bank’s MMDAs are FDIC insured, providing depositors with confidence that their funds are protected.

certificates of deposit (CDs)

CIT Bank offers a range of CDs with varying terms and interest rates. CDs are time deposits that allow customers to lock in a fixed interest rate for a specific period. Although CDs are not as liquid as checking or savings accounts, they offer the potential for higher interest earnings over time. CIT Bank’s CDs are FDIC insured, providing depositors with peace of mind that their funds are protected up to the maximum coverage limits.

other deposit products

CIT Bank also offers other deposit products and services, such as:

• Brokered deposits
• Institutional deposits
• Treasury management services

These products are designed to meet the needs of specific customers, such as institutional investors and businesses. All of CIT Bank’s deposit products are FDIC insured, ensuring that depositors’ funds are protected up to the maximum coverage limits.

Deposits Exceeding FDIC Coverage Limits

The Federal Deposit Insurance Corporation (FDIC) provides insurance coverage for deposits up to $250,000 per depositor, per insured bank. However, there are instances where deposits may exceed these coverage limits.

Joint Accounts

In the case of joint accounts, each owner of the account is entitled to the full $250,000 coverage limit. This means that if two joint owners have a combined balance of $500,000, both individuals would be fully covered by the FDIC up to the maximum amount.

Revocable and Irrevocable Trusts

Revocable trusts are considered to be owned by the individual who created the trust, so the deposit limits apply to the individual’s total deposits across all of their accounts, including the trust account. However, irrevocable trusts are treated as separate legal entities, and deposits in irrevocable trusts are insured up to $250,000 per beneficiary. This means that if a revocable trust has four beneficiaries, each beneficiary would be entitled to $250,000 in FDIC coverage for their share of the trust’s deposits.

Brokered Deposits

Brokered deposits are funds that are placed in a bank by a broker or other financial intermediary. These deposits are not typically covered by FDIC insurance because they are considered to be investments rather than traditional deposits. It is important to note that brokered deposits may be subject to different regulations and protections, so it is essential to understand the specific terms and conditions associated with these types of accounts.

Multiple Accounts at One Bank

Deposits held in multiple accounts at the same bank may or may not be insured up to the full FDIC coverage limit. Deposit insurance is calculated on a per-bank basis, not on a per-account basis. Therefore, if you have multiple accounts at the same bank, the FDIC will combine the balances of all of your accounts to determine your total coverage.

For example, if you have a checking account with a balance of $100,000 and a savings account with a balance of $150,000 at the same bank, your total coverage would be $250,000. This means that the combined balances of your two accounts are eligible for the maximum FDIC coverage.

It is important to note that if you have multiple accounts at different banks, each account is insured up to the full FDIC coverage limit, regardless of whether the banks are affiliated with each other.

Joint Accounts

Under FDIC insurance, joint accounts are treated differently from single accounts. In a joint account, two or more individuals are listed as account holders. In the event of a bank failure, each account holder is insured up to the FDIC coverage limit, regardless of the amount in the account. For example, if two individuals have a joint account with a balance of $150,000, each individual is insured up to $250,000.

Calculating Coverage Amount

To calculate the total FDIC coverage for a joint account, add up the amounts deposited by each account holder, including principal and interest. If the total amount exceeds the coverage limit, the coverage is reduced proportionally. For example, if three individuals have a joint account with a balance of $300,000, each individual would be insured for $125,000.

Single Accounts

In a single account, only one individual is listed as the account holder. The FDIC coverage limit for a single account is $250,000. Regardless of the amount in the account, the account holder is insured up to this limit.

Revocable vs. Irrevocable Trusts

Deposits in revocable and irrevocable trusts are insured differently under FDIC insurance. A revocable trust is a trust that can be changed or terminated by the grantor (the person who created the trust) at any time. Deposits in a revocable trust are treated as the grantor’s property and are thus insured up to the FDIC coverage limit.

An irrevocable trust is a trust that cannot be changed or terminated without the consent of the trustee (the person who manages the trust). Deposits in an irrevocable trust are not considered the grantor’s property and are therefore not insured under the grantor’s FDIC coverage. Instead, the deposits are insured up to the FDIC coverage limit for the trustee.

Irrevocable Trust Subaccounts

If an irrevocable trust has multiple subaccounts, each subaccount is treated as a separate account for FDIC insurance purposes. For example, if an irrevocable trust has two subaccounts, each with a balance of $100,000, each subaccount would be insured up to the FDIC coverage limit.

CIT Bank’s FDIC Insurance Status

CIT Bank is a member of the Federal Deposit Insurance Corporation (FDIC), ensuring that deposits up to $250,000 per depositor, per insured bank, are protected in the event of a bank failure. This insurance provides depositors with peace of mind, knowing that their funds are secure.

Benefits of FDIC Insurance for CIT Bank Account Holders

As a CIT Bank account holder, you can benefit from several advantages of FDIC insurance:

Deposit Protection

In the unlikely event that CIT Bank fails, FDIC insurance garantiza that your deposits up to $250,000 will be protected. This coverage includes checking accounts, savings accounts, money market accounts, and certificates of deposit.

Increased Trust and Confidence

FDIC insurance enhances depositors’ trust and confidence in CIT Bank. Knowing that their funds are insured by a federal agency gives customers the assurance that their money is safe and secure.

Nationwide Coverage

FDIC insurance applies to all FDIC-insured banks, including CIT Bank. This nationwide coverage ensures that your deposits are protected wherever you bank.

No Deductibles or Fees

FDIC insurance does not require you to pay any deductibles or fees. In the event of a bank failure, the FDIC will cover eligible deposits up to the insured amount without any out-of-pocket expenses for depositors.

Additional Security Measures

In addition to FDIC insurance, CIT Bank employs various security measures to protect your deposits, including encryption, firewalls, and fraud monitoring systems.

Understanding FDIC Insurance Coverage

It is important to understand the specific coverage provided by FDIC insurance:

Deposit Limits

FDIC insurance covers deposits up to $250,000 per depositor, per insured bank. If you have multiple accounts at CIT Bank, the coverage is calculated separately for each account.

Joint Accounts

In the case of joint accounts, each joint owner’s deposits are insured up to $250,000. For example, if a joint account has two owners, the total coverage is $500,000.

Insurance Payout

If CIT Bank fails, the FDIC will promptly cover eligible deposits up to the insured amount. The process typically takes a few days, and depositors can access their funds through a payout or by transferring them to another FDIC-insured bank.

Conclusion

FDIC insurance is a valuable protection for CIT Bank account holders, providing peace of mind and ensuring that deposits are secure. With comprehensive coverage and reliable federal backing, depositors can trust that their funds are safe and protected.

How FDIC Insurance Protects Your Deposits

The FDIC provides insurance for up to $250,000 per depositor, per insured bank, for deposit accounts. This means that if your bank fails, the FDIC will cover your deposits up to this amount. FDIC insurance is backed by the full faith and credit of the United States government, so you can be confident that your deposits are safe.

What Types of Accounts Are Insured?

FDIC insurance covers all types of deposit accounts, including:

Checking accounts
Savings accounts
Money market accounts
Certificates of deposit (CDs)

How Much is My Deposit Insured?

The FDIC insures up to $250,000 per depositor, per insured bank. This means that if you have multiple deposit accounts at the same bank, your total coverage is limited to $250,000. However, if you have joint accounts with other people, each depositor is insured up to $250,000. For example, if you have a joint checking account with your spouse, each of you would be insured up to $250,000.

What Happens if My Bank Fails?

If your bank fails, the FDIC will work to resolve the failure and protect your deposits. In most cases, the FDIC will arrange for another bank to acquire the failed bank’s deposits and continue to provide banking services to its customers. In some cases, the FDIC may simply pay off depositors’ accounts up to the insured amount.

How Can I Find Out if My Bank is FDIC Insured?

You can find out if your bank is FDIC insured by looking for the FDIC logo on your bank’s website or on your account statements. You can also search for your bank on the FDIC’s website.

What if My Deposits Exceed the FDIC Insurance Limit?

If your deposits exceed the FDIC insurance limit, you may want to consider spreading your deposits across multiple banks. This will help to ensure that all of your deposits are protected in the event that one of your banks fails.

What is the FDIC Coverage Calculator?

The FDIC Coverage Calculator is a tool that you can use to estimate how much of your deposits are insured. The calculator takes into account the types of accounts you have, the ownership of the accounts, and the amount of money in each account.

Is My Retirement Account FDIC Insured?

Retirement accounts, such as IRAs and 401(k)s, are not typically FDIC insured. However, there are some exceptions. For example, if you have a traditional IRA or a Roth IRA that is held at a bank, the deposits in that account may be FDIC insured up to $250,000. If you have a 401(k) plan, the deposits in that account may be insured by the Pension Benefit Guaranty Corporation (PBGC) up to a certain amount.

What Should I Do if My Bank is Failing?

If you believe that your bank is failing, you should contact the FDIC immediately. The FDIC can provide you with information about the situation and what steps you should take to protect your deposits.

Understanding FDIC Insurance for CIT Bank

CIT Bank, a division of CIT Group Inc., is a federally insured bank that offers various financial services. The Federal Deposit Insurance Corporation (FDIC) provides coverage for depositors up to certain limits, ensuring the safety and security of their funds.

Deposit Accounts Covered by FDIC Insurance

The FDIC insures all deposit accounts held at CIT Bank, including:

Checking accounts

Savings accounts

Money market accounts

Certificates of deposit (CDs)

Deposit Limits

The FDIC provides deposit insurance up to specific limits per depositor, per insured bank. As of January 1, 2023, the standard maximum deposit insurance amount is $250,000.

Joint Accounts

For joint accounts, the FDIC insurance coverage is doubled, providing up to $500,000 per joint depositor. This applies to both married and unmarried joint account holders.

Irrevocable Trust Accounts

Irrevocable trust accounts are also eligible for FDIC insurance, with coverage limits per beneficiary. This can provide additional protection for funds held in trust for future beneficiaries.

Exceptions to FDIC Coverage

While most deposit accounts at CIT Bank are covered by FDIC insurance, there are some exceptions:

1. Non-Deposit Investments

Investments such as stocks, bonds, and mutual funds are not covered by FDIC insurance.

2. Brokered Deposits

Deposits placed through a broker may not be eligible for FDIC insurance.

3. Excess Deposits

Deposits that exceed the FDIC insurance limits are not covered.

4. Government Deposits

Deposits made by federal, state, or local government entities are not insured by the FDIC.

5. Corporate Deposits

Deposits made by corporations or other business entities are not covered by FDIC insurance.

6. Deposits in Foreign Branches

Deposits held in foreign branches of CIT Bank are not insured by the FDIC.

7. Certain Trust Accounts

Trust accounts that are not irrevocable or that have special characteristics may not be eligible for FDIC insurance.

8. Bank Failings

In the event of a bank failure, depositors may lose access to their funds until the FDIC can resolve the situation. This includes deposits that exceed the FDIC coverage limits.

9. Fraudulent Deposits

Deposits made through fraudulent means are not covered by FDIC insurance.

10. Uninsured Institutions

Deposits held at financial institutions that are not insured by the FDIC, such as credit unions or investment banks, are not covered by FDIC insurance.

Importance of FDIC Insurance

FDIC insurance provides depositors with peace of mind, knowing that their funds are protected up to the coverage limits. This encourages financial stability and trust in the banking system.

Checking Accounts and FDIC Coverage at CIT Bank

CIT Bank, a division of CIT Group Inc., is an online-only bank that offers a variety of banking services, including checking accounts. All checking accounts at CIT Bank are insured by the Federal Deposit Insurance Corporation (FDIC), up to the legal maximum of $250,000 per depositor.

Deposit Insurance Basics

The FDIC is an independent agency of the United States government that insures deposits at FDIC-member banks. In the unlikely event that an FDIC-member bank fails, the FDIC will cover the deposits of its customers, up to the legal maximum. This insurance provides peace of mind to depositors, knowing that their funds are protected.

CIT Bank’s FDIC Coverage

All checking accounts at CIT Bank are FDIC-insured. This means that the deposits in these accounts are protected by the FDIC, up to the legal maximum of $250,000 per depositor. The FDIC insurance covers both principal and interest on deposits, and it applies to all types of checking accounts, including:

Premier High-Yield Savings Account
Savings Connect Account
Money Market Account
eChecking Account
Business Checking Account

Benefits of FDIC Coverage

There are several benefits to having an FDIC-insured checking account. First, it provides peace of mind knowing that your deposits are protected. Second, it can help you qualify for loans and other financial products. Third, it ensures that your money is safe even if the bank fails.

How to Check Your FDIC Coverage

To check your FDIC coverage, you can visit the FDIC’s website at www.fdic.gov. You will need to enter your bank’s name and account number. The FDIC will then provide you with information about your coverage, including the amount of your deposits that are insured.

Exceptions to FDIC Coverage

There are a few exceptions to FDIC coverage. For example, the FDIC does not cover:

Deposits that are made in excess of the legal maximum of $250,000 per depositor
Deposits that are made into non-FDIC-member banks
Investments, such as stocks and bonds
Money orders and cashier’s checks
Safe deposit box contents
Private investments
Certificates of deposit with maturities of more than 30 days.
U.S. Treasury securities.
Money held in a revocable trust account or a Totten trust account.

Savings Accounts and FDIC Coverage at CIT Bank

CIT Bank, a division of First Citizens Bank, offers a range of savings accounts with competitive interest rates. These accounts provide a safe and secure way to grow your money while earning interest.

Bank Overview

CIT Bank is a federally chartered savings bank that has been in operation for over a century. It is a member of the Federal Deposit Insurance Corporation (FDIC), which insures depositors’ funds up to $250,000 per account.

FDIC Insurance Coverage

All deposits at CIT Bank are insured by the FDIC up to the legal maximum. This means that in the unlikely event that CIT Bank fails, your deposits are protected by the FDIC.

Savings Account Features

CIT Bank offers a variety of savings accounts with different features and benefits. Some of the most popular savings accounts include:

CIT Savings Connect: A high-yield savings account with no monthly maintenance fees or minimum balance requirements.
CIT Premier High Yield Savings: A high-yield savings account with a premium interest rate for higher balances.
CIT Money Market Account: A money market account that offers a competitive interest rate and access to your funds through checks or a debit card.

Eligibility for FDIC Coverage

To be eligible for FDIC coverage, your deposits must be in a qualifying account type. The following types of accounts are eligible for FDIC coverage at CIT Bank:

Individual accounts: Accounts in the name of one person, such as a savings account or a checking account.
Joint accounts: Accounts in the name of two or more people, such as a joint savings account or a joint checking account.
Trust accounts: Accounts in the name of a trust, such as a revocable living trust or an irrevocable trust.

Coverage Limits

The FDIC insurance coverage limit is $250,000 per depositor, per insured bank. This means that if you have multiple accounts at CIT Bank, your deposits are insured up to $250,000 in each account.

Exceptions to Coverage

There are a few exceptions to FDIC coverage. The following types of deposits are not insured by the FDIC:

Brokered deposits: Deposits that are placed through a broker or other intermediary.
Eurodollar deposits: Deposits that are denominated in foreign currency.
Municipal funds: Deposits that are invested in municipal bonds or other municipal securities.

Protecting Your Deposits

To protect your deposits, it is important to spread your funds across multiple accounts at different banks. This will ensure that your deposits are protected even if one bank fails.

Conclusion

CIT Bank is a federally chartered savings bank that offers a range of savings accounts with competitive interest rates. All deposits at CIT Bank are insured by the FDIC up to $250,000 per account. To protect your deposits, spread your funds across multiple accounts at different banks.

Money Market Accounts and FDIC Coverage at CIT Bank

CIT Bank offers several Money Market Account (MMA) options that provide competitive interest rates and flexible access to your funds. Here’s a detailed look at FDIC coverage for CIT Bank’s MMA:

What is the FDIC?

The Federal Deposit Insurance Corporation (FDIC) is a government agency that insures deposits in member banks, up to a maximum of $250,000 per depositor, per insured bank. FDIC insurance protects depositors’ funds in the event of a bank failure.

Is CIT Bank FDIC-Insured?

Yes, CIT Bank is a member of the FDIC. This means that all deposits held in FDIC-insured accounts at CIT Bank are protected up to $250,000.

What Accounts are FDIC-Insured at CIT Bank?

The following accounts at CIT Bank are FDIC-insured:

Premier High-Yield Savings
Premier Money Market
Access Money Market
Money Market Max

How Much of My Deposit is FDIC-Insured?

The FDIC insures deposits up to $250,000 per depositor, per insured bank. This means that if you have multiple accounts at CIT Bank, your total coverage is still $250,000.

What is Not Covered by FDIC Insurance?

The following are not covered by FDIC insurance:

Investment products, such as stocks, bonds, and mutual funds
Money held in safe deposit boxes
Deposits in excess of $250,000

How to Calculate Your FDIC Coverage

To calculate your FDIC coverage, add up the total deposits you have in each FDIC-insured account at CIT Bank. If your total deposits exceed $250,000, only the first $250,000 is insured.

Joint Accounts

For joint accounts, each owner is insured up to $250,000. This means that if you have a joint account with someone else, your total coverage is $500,000.

What to Do if CIT Bank Fails

In the unlikely event that CIT Bank fails, the FDIC will work to protect your deposits. The FDIC may either transfer your deposits to another insured bank or pay you directly up to the $250,000 limit.

Additional Resources

For more information about FDIC coverage, visit the FDIC website: https://www.fdic.gov

12. Certificates of Deposit and FDIC Coverage at CIT Bank

What is FDIC Coverage?

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that provides deposit insurance to customers of FDIC-member banks. This means that if an FDIC-member bank fails, the FDIC will insure deposits up to $250,000 per depositor.

CIT Bank and FDIC Coverage

CIT Bank is a member of the FDIC, which means that all deposits held at CIT Bank are eligible for FDIC coverage. This includes deposits in checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs).

FDIC Coverage for CDs

CDs are a type of savings account that offers a fixed interest rate for a specified term. CDs are considered a safe investment because they are backed by the FDIC.

The amount of FDIC coverage that you have for your CDs will depend on the ownership of the account. For individual accounts, the FDIC coverage limit is $250,000. For joint accounts, the FDIC coverage limit is $250,000 per depositor, up to a total of $500,000.

Example of FDIC Coverage for CDs

Let’s say you have a $100,000 CD at CIT Bank. If CIT Bank fails, the FDIC will insure your deposit up to $250,000. This means that you would get your entire $100,000 back.

FDIC Coverage Limits

The FDIC coverage limits for CDs are the same as the coverage limits for other types of deposits. The coverage limits are set by law and are periodically reviewed and adjusted.

FDIC Coverage for Multiple CDs

If you have multiple CDs at CIT Bank, the FDIC coverage applies to each individual CD. This means that if you have a $100,000 CD and a $50,000 CD, the FDIC will insure each CD up to $250,000. This means that you would get your entire $150,000 back if CIT Bank fails.

FDIC Coverage for Jointly Owned CDs

If you have a jointly owned CD, the FDIC coverage limit is $250,000 per depositor. This means that if you and your spouse have a $100,000 CD, the FDIC will insure each of you up to $250,000. This means that you would each get your full $100,000 back if CIT Bank fails.

Additional Information

For more information about FDIC coverage, please visit the FDIC website.

What Does FDIC Insurance Cover?

FDIC insurance covers deposits up to $250,000 per depositor, per insured bank, for each account ownership category. This means that if your bank fails, the FDIC will reimburse you for the amount of your deposits that is not covered by your account insurance. FDIC insurance covers checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). It does not cover other investments, such as stocks, bonds, or mutual funds.

Special Cases: FDIC Coverage for Trust Accounts and IRAs

Trust accounts and IRAs are subject to special FDIC insurance rules. For trust accounts, the FDIC insures each beneficiary’s interest in the account up to $250,000. This means that if the bank fails, each beneficiary will be reimbursed for up to $250,000 of their interest in the account, regardless of the total amount of money in the account.

For IRAs, the FDIC insures each individual’s IRA up to $250,000. This means that if the bank fails, each individual will be reimbursed for up to $250,000 of their IRA, regardless of the number of IRAs they have or the total amount of money in their IRAs.

Joint Accounts

For joint accounts, the FDIC insures each owner’s interest in the account up to $250,000. This means that if the bank fails, each owner will be reimbursed for up to $250,000 of their interest in the account, regardless of the total amount of money in the account.

Tiered Accounts

For tiered accounts, the FDIC insures each tier of the account up to $250,000. For example, if you have a tiered money market account with three tiers, the FDIC will insure each tier up to $250,000, for a total of $750,000 in coverage.

Brokered Deposits

Brokered deposits are deposits that are placed with a bank through a broker. The FDIC insures brokered deposits up to $250,000 per depositor, per insured bank, for each account ownership category. This means that if the bank fails, the FDIC will reimburse you for up to $250,000 of your brokered deposits, regardless of the total amount of money in the account.

Revocable Trust Accounts

Revocable trust accounts are trust accounts that can be changed or revoked by the grantor. The FDIC insures revocable trust accounts up to $250,000 per grantor, per insured bank, for each account ownership category. This means that if the bank fails, the FDIC will reimburse the grantor for up to $250,000 of their interest in the account, regardless of the total amount of money in the account.

Irrevocable Trust Accounts

Irrevocable trust accounts are trust accounts that cannot be changed or revoked by the grantor. The FDIC insures irrevocable trust accounts up to $250,000 per beneficiary, per insured bank, for each account ownership category. This means that if the bank fails, the FDIC will reimburse each beneficiary for up to $250,000 of their interest in the account, regardless of the total amount of money in the account.

Employee Benefit Plan Accounts

Employee benefit plan accounts are accounts that are established for the benefit of employees. The FDIC insures employee benefit plan accounts up to $250,000 per participant, per insured bank, for each account ownership category. This means that if the bank fails, the FDIC will reimburse each participant for up to $250,000 of their interest in the account, regardless of the total amount of money in the account.

Government Accounts

Government accounts are accounts that are owned by a government entity. The FDIC insures government accounts up to $250,000 per account, regardless of the total amount of money in the account.

Verifying FDIC Insurance Coverage for CIT Bank Accounts

CIT Bank, a division of First Citizens Bank, is a federally insured bank that holds your funds safely and securely. Here’s how to ensure your CIT Bank accounts are covered by FDIC insurance.

1. Check the FDIC Website

Visit the FDIC’s online BankFind tool at https://www.fdic.gov/bank/individual/findabank/index.html and search for “CIT Bank.” Confirm that the bank is listed as an FDIC-insured institution.

2. Review Your Account Statements

CIT Bank account statements typically include a statement at the bottom indicating that your deposits are FDIC-insured up to certain limits.

3. FDIC Online Tool

Use the FDIC’s online coverage estimator at https://edie.fdic.gov/calculator/ to calculate your estimated coverage for CIT Bank accounts.

4. Phone Inquiries

Contact CIT Bank customer service at 1-855-482-2265 to verify FDIC insurance coverage for your accounts.

5. FDIC Deposit Insurance Coverage Limits

The FDIC insures deposits up to $250,000 per depositor, per insured bank. Coverage includes:

Checking accounts
Savings accounts
Money market accounts
CDs (certificates of deposit)

6. Joint Accounts

For joint accounts, FDIC insurance coverage is up to $500,000.

7. Individual Retirement Accounts (IRAs)

For IRAs, FDIC insurance covers up to $250,000, including both the traditional and Roth components.

8. Trust Accounts

For revocable living trusts, FDIC insurance covers up to $250,000 for each beneficiary.

9. Coverage Exceptions

Some deposits are not covered by FDIC insurance, such as:

Commercial loans
Brokered deposits
Municipal bonds

10. FDIC’s Role in Bank Failures

In the unlikely event of a bank failure, the FDIC works to protect depositors by:

Insuring up to $250,000 per depositor
Arranging for the transfer of deposits to another FDIC-insured institution

11. CIT Bank’s Safety and Soundness

CIT Bank is a well-capitalized institution with a strong track record of financial stability. It is regularly audited by the FDIC and other regulatory agencies.

12. Importance of FDIC Insurance

FDIC insurance provides peace of mind, knowing that your deposits are protected up to certain limits. It helps maintain confidence in the banking system and protects consumers’ financial well-being.

13. Coverage Limits for Different Account Types

Keep in mind that FDIC insurance coverage limits apply separately to different account types. For example, if you have a checking account and a savings account at CIT Bank, each account is insured up to $250,000.

14. Additional Resources

For more information and resources related to FDIC insurance, visit the FDIC’s website at https://www.fdic.gov/. You can also obtain a free copy of the “FDIC’s Guide to Deposit Insurance” by calling 1-877-ASK-FDIC.

FDIC Coverage: Understanding Your Financial Protection

The Federal Deposit Insurance Corporation (FDIC) protects depositors’ money up to a specific amount in the event that their bank fails. This coverage provides peace of mind and ensures that your funds are accessible, even in the face of financial uncertainty. Let’s delve into the details of FDIC coverage.

FDIC Insurance Limits

FDIC coverage has standardized limits for different types of accounts:

Individual Deposits: Up to $250,000 per depositor, per insured bank.
Joint Accounts: Up to $250,000 for each account holder, up to a maximum of $500,000 per joint account.

Coverage for Different Account Types

FDIC coverage extends to various types of accounts, including:

Checking accounts
Savings accounts
Money market accounts
Certificates of Deposit (CDs)

FDIC Coverage for Retirement Accounts

Specific coverage limits apply to retirement accounts:

Traditional IRAs: Up to $250,000 per depositor, per insured bank.
Roth IRAs: Up to $250,000 per depositor, per insured bank.
SEP and SIMPLE IRAs: Up to $250,000 per participant, per insured bank.

Separate Coverage for Retirement and Regular Accounts

Coverage for retirement accounts is separate from that provided for regular accounts. This means that funds in your IRA or 401(k) receive additional coverage, up to the specified limits.

Comparing FDIC Coverage to Other Deposit Insurance Options

The FDIC is not the only provider of deposit insurance. There are other options available, each with its own unique features:

National Credit Union Administration (NCUA): Provides insurance for funds in credit unions, with coverage limits similar to FDIC.
State-Chartered Deposit Insurance Corporations (DICs): Some states have their own deposit insurance systems, which may offer different coverage limits or requirements.

Understanding Your Coverage

To ensure your deposits are fully protected, it’s crucial to understand your coverage limits and how they apply to your specific situation. Consider the following factors:

Account Ownership: The coverage limits are based on the account ownership, not the account type. Joint accounts have higher coverage limits.
Multiple Accounts: If you have multiple accounts at the same bank, your coverage is calculated separately for each account.
Bank Failure: FDIC coverage only applies if the bank where your deposits are held fails. It does not cover losses due to poor investment decisions or fraud.

Additional Considerations

Here are a few additional tips to help you maximize your deposit insurance protection:

Spread Your Deposits: Distribute your funds across different banks to increase your coverage beyond the standard limits.
Monitor Your Accounts: Regularly review your account statements and ensure there are no unauthorized transactions or irregularities.
Understand the FDIC’s Role: The FDIC is a federal agency that insures deposits, not bank operations. If a bank engages in risky practices, the FDIC’s insurance may not be enough to cover all depositors’ losses.