Are Cds Fdic Insured

Tue, 05 May 2026 22:35:54 +0000

**Are CDs FDIC Insured? What You Need to Know in 2025** Why are so many Americans asking: Are CDs FDIC insured? With growing interest in safer ways to protect savings, CDs (Certificates of Deposit) have become a steady fixture in financial conversations—especially as inflation and market volatility drive demand for low-risk investments. This rising curiosity reflects a broader trend toward financial security, and understanding what’s genuinely covered by FDIC insurance is essential. Are CDs FDIC insured? Short answer: CDs themselves are not FDIC insured. Instead, when a CD is held at a bank that participates in the FDIC’s insurance program, the underlying funds are fully protected up to $250,000 per depositor, per institution. This protection applies not to the CD instrument, but to the savings balance—meaning your money in a FDIC member bank’s CD remains safe from bank failure. The FDIC, or Federal Deposit Insurance Corporation, operates under U.S. law to safeguard consumer deposits across eligible banks and credit unions. Most major banks, credit unions, and financial institutions signed up for FDIC coverage—making CDs held at these institutions eligible for insurance. But not all CDs enjoy this benefit automatically; it depends on the financial institution’s active participation in the FDIC program, not the product type.