Yes, CIT Bank is FDIC insured through its parent company, First Citizens Bank. Here is an article detailing the coverage and merger.
Is CIT Bank covered by the FDIC? What you need to know
First-Citizens Bank & Trust Company, a division of the Federal Deposit Insurance Corporation (FDIC), operates CIT Bank. Because of First Citizens Bank's membership in the FDIC, deposits held at CIT Bank are covered. Customers value this distinction because it ensures the safety of their funds. The acquisition of First Citizens Bank The acquisition of CIT Group by First Citizens Bank was completed in January 2022. While the CIT Bank name continues to be used for its online banking division, the two entities are now operating under the same bank charter.
For customers, this means:
One insurance limit: There is no separate insurance for deposits held under the names "First Citizens Bank" and "CIT Bank." When determining whether you have exceeded the federal insurance deposit limit, all of your funds from both brands are combined. All of your deposits are covered by the same FDIC coverage, regardless of whether you have a savings account with CIT Bank or a checking account with First Citizens Bank. How your money is protected by FDIC insurance In the event of a bank failure, depositors are safeguarded by the Federal Deposit Insurance Corporation (FDIC), an independent government agency. For each account ownership category, the standard insurance amount is up to $250,000 per depositor, per insured bank. Ownership categories: The $250,000 limit applies to different types of ownership. For example, a single account owner has a separate limit from a joint account owner. An individual with both a single and a joint account could be insured for up to $250,000 on the single account and up to an additional $250,000 on their share of the joint account.
Automatic protection: You don't need to apply for FDIC insurance. You are automatically covered if you have an account with First Citizens/CIT Bank, which is insured by the FDIC. Why is this crucial? A very important layer of protection for your money is provided by FDIC insurance. It ensures that depositors' savings and other deposits will be protected even if their bank fails, giving depositors faith in the U.S. banking system. The acquisition of CIT Bank by First Citizens Bank merely consolidates this protection under a broader, unified bank charter for its customers.
