When it comes to choosing a bank, the safety of your money is probably one of your top priorities. And rightly so. After all, you’re trusting a financial institution with your hard-earned cash. If you’re considering banking with CIT Bank, you might be wondering: “Is CIT Bank FDIC insured?” The short answer is yes—but let’s dive deeper into what that means, how it works, and why it matters to you.
What Does FDIC Insurance Mean?
Before getting into CIT Bank specifically, it’s essential to understand what FDIC insurance is and why it’s so important for banking customers.
FDIC stands for Federal Deposit Insurance Corporation. It’s an independent agency created by Congress back in 1933, during the Great Depression, to restore trust in the American banking system. If a bank fails (which is rare, but possible), the FDIC steps in to make sure depositors don’t lose their money.
Here’s the basic idea:
- The FDIC insures up to $250,000 per depositor, per insured bank, for each account ownership category.
- If your bank goes out of business, and it’s FDIC insured, your money (up to the limit) is still protected.
- FDIC insurance applies to checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs).
Why FDIC Insurance Is Non-Negotiable
FDIC insurance is the bedrock of safe banking in the U.S. It’s the government’s way of saying, “We’ve got your back.” This coverage gives peace of mind to millions of Americans, especially during times of financial uncertainty. That’s why many people ask, “Is CIT Bank FDIC Insured?”—because without this protection, you could potentially lose everything if your bank failed.
Is CIT Bank FDIC Insured?
Yes, CIT Bank is FDIC insured through its parent company, First Citizens Bank.
In fact, CIT Bank became a division of First Citizens Bank in January 2022. First Citizens Bank is a well-established, FDIC-member bank headquartered in Raleigh, North Carolina. This merger means that CIT Bank customers now benefit from the same FDIC protections provided to all First Citizens Bank customers.
How the FDIC Coverage Works for CIT Bank Accounts
So, if you open an account at CIT Bank, whether it’s a savings account, CD, or money market account, you are covered under FDIC insurance. Here’s how that breaks down:
- Coverage Limit: $250,000 per depositor, per insured bank.
- Multiple Accounts: If you have more than one account (like a savings account and a CD), your total across all accounts is insured up to $250,000 per ownership category.
- Joint Accounts: If you have a joint account with someone else, you each get $250,000 in protection, meaning the joint account is insured up to $500,000.
What Products at CIT Bank Are FDIC Insured?
CIT Bank offers several types of deposit accounts, and all of them qualify for FDIC insurance. Here’s a quick rundown:
✅ Savings Builder and Platinum Savings
These are high-yield savings accounts that offer competitive interest rates. Whether you maintain a minimum balance or set up regular monthly deposits, your funds are safe and protected.
✅ Money Market Accounts
Money market accounts at CIT Bank give you a higher interest rate than traditional savings and are FDIC insured as well.
✅ Certificates of Deposit (CDs)
CIT Bank offers various CD terms, including no-penalty CDs. Regardless of the type, all CIT Bank CDs are FDIC insured.
🛑 Not FDIC Insured: Investment products such as mutual funds, stocks, bonds, or annuities (which CIT Bank may offer through partners) are not FDIC insured. Always read the fine print before investing.
How to Maximize FDIC Insurance Coverage at CIT Bank
If you have a large amount of money to deposit, you might be wondering how to ensure that all of it is protected. Here are a few smart strategies:
🧠 Strategy 1: Use Different Ownership Categories
FDIC insurance covers different ownership categories separately. For example:
- Single account: $250,000 per owner
- Joint account: $250,000 per co-owner
- Retirement accounts (IRAs): Also separately insured up to $250,000
You can use these categories strategically to expand your coverage.
🧠 Strategy 2: Open Accounts at Multiple FDIC-Insured Banks
Since the $250,000 limit applies per bank, opening accounts at other FDIC-insured institutions can help protect more of your assets.
Tip: Make sure the banks are actually separate entities. Two banks under the same parent company might be considered one for FDIC purposes.
CIT Bank’s Reputation and Financial Stability
FDIC insurance is critical, but you also want to feel confident in the reputation and stability of the bank you choose. CIT Bank has a solid history dating back to 1908. Following the merger with First Citizens Bank, its stability and customer base have grown substantially.
Here are a few more reasons to trust CIT Bank:
- Strong backing from First Citizens Bank, which has been around since 1898.
- Digital-first experience, with highly rated online tools and mobile apps.
- Offers competitive interest rates on savings products.
Frequently Asked Questions About CIT Bank and FDIC Insurance
Is My Money Safe with CIT Bank?
Yes, absolutely. As an FDIC-insured institution under First Citizens Bank, your deposits are protected up to $250,000 per depositor, per ownership category.
What Happens If CIT Bank Fails?
In the unlikely event that CIT Bank fails, the FDIC will either:
- Pay you directly for your insured deposits, or
- Transfer your accounts to another FDIC-insured institution.
Either way, your insured funds will remain protected.
How Do I Know If an Account Is FDIC Insured?
CIT Bank clearly states on its website and account disclosures that its products are FDIC insured. You can also verify a bank’s FDIC status using the FDIC’s BankFind tool online.
Final Thoughts: Is CIT Bank FDIC Insured?
Yes, CIT Bank is 100% FDIC insured through its parent company, First Citizens Bank. This means your deposits are safe and secure, up to the standard $250,000 limit per depositor. Whether you’re parking your emergency fund in a high-yield savings account, locking in a rate with a CD, or exploring a money market account, you can rest easy knowing your money is protected.
So, if you’re considering CIT Bank for its great interest rates and online convenience, you can move forward with confidence. FDIC insurance is one of the most important factors in banking—and CIT Bank checks that box in full.
