Yes, CIT Bank is FDIC insured. It operates as a division of First-Citizens Bank & Trust Company and shares that bank’s FDIC certificate, so your deposits carry the full backing of the federal government up to $250,000 per depositor, per ownership category.1Federal Deposit Insurance Corporation. BankFind Suite – CIT Bank, National Association
The Certificate CIT Bank Sits Under
CIT Bank became a division of First-Citizens Bank & Trust Company after CIT Group Inc. merged with First Citizens BancShares. The FDIC finalized the transition on January 4, 2022, and CIT Bank now operates under First-Citizens Bank & Trust Company’s FDIC certificate number 11063.1Federal Deposit Insurance Corporation. BankFind Suite – CIT Bank, National Association That certificate is currently active, meaning deposits at CIT Bank are backed by the full faith and credit of the U.S. government.2Federal Deposit Insurance Corporation. BankFind Suite – First-Citizens Bank and Trust Company
Here is the wrinkle that catches people off guard. Because CIT Bank and First-Citizens Bank share a single charter, deposits at both count toward the same insurance limit rather than being covered separately. If you hold $200,000 in a CIT Bank savings account and $100,000 in a First-Citizens Bank checking account under the same ownership category, only $250,000 of that $300,000 is insured.3CIT Bank. FDIC Insurance and Coverage Details The temporary separate coverage the FDIC provides after a merger ran out in mid-2022, so treat the two names as one bank when you add up your balances.4eCFR. 12 CFR 330.4 – Continuation of Separate Deposit Insurance After Merger of Insured Depository Institutions
What FDIC Insurance Covers and What It Doesn’t
The standard maximum deposit insurance amount is $250,000 per depositor, per insured bank, per ownership category.5eCFR. 12 CFR 330.1 – Definitions Coverage is automatic. You do not apply for it and you do not pay a premium. It attaches to checking accounts, savings accounts, money market deposit accounts, and certificates of deposit.6Federal Deposit Insurance Corporation. Understanding Deposit Insurance
FDIC insurance does not cover investments purchased through a bank, including stocks, bonds, mutual funds, annuities, and crypto assets. It also does not cover the contents of safe deposit boxes. A safe deposit box is a storage service rather than a deposit account, so what you keep inside falls entirely outside FDIC protection.7FDIC Information and Support Center. Is a Safe Deposit Box, Theft, Fraud, Stocks or Investments Insured by the FDIC
Coverage Beyond $250,000 Through Ownership Categories
The $250,000 limit applies separately to each ownership category you hold at the same bank. Funds in different categories are not combined, so a single person could hold $250,000 insured in an individual account, another $250,000 through their share of a joint account, and another $250,000 in a qualifying retirement account, all at CIT Bank, all fully covered.8Federal Deposit Insurance Corporation. General Principles of Insurance Coverage
Single Accounts
All deposits owned by one person in their own name are added together and insured up to $250,000 total. A checking account with $80,000 and a CD with $200,000 in the same person’s name come to $280,000, and $30,000 of that is uninsured.9eCFR. 12 CFR 330.6 – Single Ownership Accounts
Joint Accounts
Joint accounts qualify for insurance separate from each co-owner’s individual accounts. Each co-owner’s share across all qualifying joint accounts at the same bank is insured up to $250,000. For a two-person joint account with equal shares, that comes to $500,000 in total coverage.10eCFR. 12 CFR 330.9 – Joint Ownership Accounts
Certain Retirement Accounts
Deposits held in qualifying retirement accounts get their own $250,000 of coverage, separate from your other accounts. The eligible types include Traditional, Roth, SEP, and SIMPLE IRAs; self-directed 401(k), profit-sharing, and money purchase plans; self-directed Keogh plans for the self-employed; and Section 457 deferred compensation plans offered by state and local governments. All qualifying retirement deposits owned by the same person at the same bank are combined and insured up to $250,000 in total, not $250,000 per account.11Federal Deposit Insurance Corporation. Certain Retirement Accounts
Trust Accounts
Trust coverage changed on April 1, 2024. Revocable trusts, irrevocable trusts, payable-on-death accounts, and in-trust-for accounts are now combined into a single trust ownership category. Coverage equals $250,000 multiplied by the number of unique beneficiaries named, capped at five beneficiaries.12eCFR. 12 CFR 330.10 – Trust Accounts The most any single trust owner can insure in trust accounts at one bank is $1,250,000, no matter how many beneficiaries appear beyond five.13Federal Deposit Insurance Corporation. Your Insured Deposits
Business Accounts
How business deposits are insured depends on how the business is structured. Sole proprietorships and DBA accounts do not get separate coverage. Those balances are treated as the owner’s personal funds and combined with any other individual accounts that person holds at the same bank.9eCFR. 12 CFR 330.6 – Single Ownership Accounts
Corporations, partnerships, and LLCs engaged in legitimate independent business activity get their own $250,000, separate from the personal accounts of any owners or partners. Separately incorporated subsidiaries qualify for their own coverage as well. Different divisions of the same corporation do not; their deposits are added together under the parent company’s single $250,000 limit.14Federal Deposit Insurance Corporation. Corporation, Partnership and Unincorporated Association Accounts
What Happens If the Bank Fails
The FDIC pays insured deposits within a few days of a bank closing, usually by the next business day. You receive your money either through a new account opened at another FDIC-insured bank with the insured balance transferred in, or a check mailed for the insured amount.15Federal Deposit Insurance Corporation. Deposit Insurance FAQs Straightforward accounts within the $250,000 limit move fast and largely automatically. Trust documents, balances over the limit, and brokered deposits can take longer because the FDIC may need documentation to determine the correct insurance amount.
Anything above the insured limit is not automatically lost. The FDIC sells the failed bank’s assets and distributes proceeds to uninsured depositors proportionally, in installments, with recovery depending on the quality of those assets.
How to Confirm Your Own Coverage
The FDIC offers two free online tools. BankFind lets you look up any institution by name to confirm it is FDIC-insured, see its certificate number, and check its current operating status.16FDIC Information and Support Center. How Do I Find Out If a Bank Is FDIC-Insured The Electronic Deposit Insurance Estimator, or EDIE, lets you enter your specific accounts and balances to see exactly how much is covered and whether any portion sits above the limit.17Federal Deposit Insurance Corporation. Electronic Deposit Insurance Estimator (EDIE) If you hold accounts at both CIT Bank and First-Citizens Bank, enter them together, since they fall under one certificate.