CDs are debt instruments offered by commercial banks and thrifts to raise funds for the business activities. Most CDs with maturities of one year or less will pay interest at maturity.
- CDs with maturities longer than one year normally pay interest on a semi-annual basis. The payment is calculated using the actual number of days divided by 365.
- Any fixed income security sold prior to maturity may be subject to a substantial gain or loss. If sold prior to maturity, CDs may be sold on the secondary market subject to market conditions.
New Deposit Insurance Limits
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. FDIC's Summary of Deposit Insurance Coverage
For complete information regarding FDIC coverage, please consult FDIC.gov.
FDIC Deposit Insurance Coverage
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.
FDIC insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or securities.
There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.
Basic FDIC Deposit Insurance Coverage Limits*1
Single Accounts (owned by one person) |
$250,000 per owner |
Joint Accounts (two or more persons) |
$250,000 per co-owner |
IRAs and certain other retirement accounts |
$250,000 per owner |
Trust Accounts |
$250,000 per owner per beneficiary (subject to specific limitations and requirements) |
* These deposit insurance coverage limits refer to the total of all deposits that an account holder (or account holders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.
1Beginning December 31, 2010 through December 31, 2012, deposits held in noninterest-bearing transaction accounts will be fully insured, regardless of the amount in the account, at all FDIC-insured institutions.
If you have questions about FDIC coverage limits and requirements, please visit FDIC.gov/deposit/deposits/dis, call toll-free (877) ASK-FDIC, or ask a representative at your bank.