Yes, CIT Bank is FDIC insured.
Here's a detailed explanation:
- CIT Bank is a Division of First-Citizens Bank & Trust Company:
2 It's important to note that CIT Bank operates as a division of First-Citizens Bank & Trust Company.3 This means that your deposits with CIT Bank are covered under the FDIC insurance of First-Citizens Bank & Trust Company.4 - FDIC Insurance Coverage: The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects bank depositors in the event of a bank failure.
5 - Standard Coverage Limit: The standard FDIC insurance amount is $250,000 per depositor, per FDIC-insured bank, for each account ownership category.
6 - Account Ownership Categories: This "ownership category" is key to understanding how much coverage you might have.
7 Different categories include:- Single Accounts: Accounts owned by one person (e.g., individual checking, savings, CDs).
8 These are insured up to $250,000 per person.9 - Joint Accounts: Accounts owned by two or more people.
10 Each co-owner is insured up to $250,000, meaning a joint account with two owners could be insured up to $500,000.11 - Certain Retirement Accounts: Including IRAs, are insured up to $250,000 per owner, separate from other accounts.
12 - Trust Accounts: Can have even higher coverage depending on the number of beneficiaries and how the trust is structured.
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- Single Accounts: Accounts owned by one person (e.g., individual checking, savings, CDs).
- Combined Limits: Since CIT Bank is a division of First-Citizens Bank & Trust Company, any deposits you hold under the First-Citizens Bank & Trust Company name and the CIT Bank name are not separately insured.
14 They are combined for the purpose of determining if you have exceeded the federal insurance deposit limit for that single institution.15 - What FDIC Insurance Covers: FDIC insurance covers deposit products like:
- Checking accounts
16 - Savings accounts
17 - Money market deposit accounts (MMDAs)
18 - Certificates of Deposit (CDs)
19 - Cashier's checks, money orders, and other official items issued by a bank.
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- Checking accounts
- What FDIC Insurance Does NOT Cover: It's crucial to understand that FDIC insurance does not cover:
- Investments in stocks, bonds, mutual funds, annuities, or municipal securities (even if purchased through the bank).
- Life insurance policies.
- Contents of safe deposit boxes.
- U.S. Treasury bills, savings bonds, or Treasury notes.
- Automatic Coverage: You don't need to apply for or purchase FDIC insurance.
21 It's automatic for any deposit account opened at an FDIC-insured bank. - Peace of Mind: The FDIC has a long history of protecting depositors.
22 Since its establishment in 1933, no depositor has lost a penny of FDIC-insured funds due to a bank failure.23
In summary, when you deposit money with CIT Bank (a division of First-Citizens Bank & Trust Company), your funds are safe and insured by the FDIC up to the standard limits, just like with any other FDIC-insured bank.
