If you keep real money at any online bank, safety matters.
Maybe you’ve wondered, “What’s the CIT Bank FDIC insured amount exactly?”
You’re not alone. After a few high‑profile bank failures, a lot of us started double‑checking where our cash sits. The good news: FDIC rules are clear once you understand a few basics.
This guide walks through how FDIC insurance works at CIT Bank, how much is covered, and simple ways to increase protection without playing bank‑hopping games.
Is CIT Bank FDIC Insured?
Yes. CIT Bank is FDIC insured.
CIT Bank operates as a division of First-Citizens Bank & Trust Company. That bank is a Member FDIC, which you’ll see in the fine print on their site. FDIC insurance comes from the government, not from CIT itself.
According to the Federal Deposit Insurance Corporation (FDIC.gov), the standard FDIC insurance amount is $250,000 per depositor, per insured bank, per ownership category. That rule applies whether you bank at CIT, Chase, Wells Fargo, or a tiny community bank.
So the CIT Bank FDIC insured amount for one person with individual accounts is generally:
- Up to $250,000 total across all their individual deposit accounts
- At that one bank, under that one ownership category
This coverage applies to:
- Savings accounts (like CIT’s high‑yield savings)
- Money market accounts
- Checking accounts
- Certificates of Deposit (CDs)
It does not cover investments like stocks, bonds, or mutual funds, even if you bought them through a related company.
Exactly How the CIT Bank FDIC Insured Amount Works
FDIC insurance sounds simple, but the wording trips people up.
Let’s break down the key phrase:
“Per depositor, per insured bank, per ownership category.”
1. Per depositor
A depositor is each person or legal entity.
If you and your spouse both bank at CIT, you are two depositors.
2. Per insured bank
CIT is part of First-Citizens Bank & Trust Company.
All your CIT‑branded deposits count together with that bank.
You don’t get a new $250,000 limit just because the logo is different.
3. Per ownership category
Ownership category is where many people can legally increase coverage.
According to the FDIC, these common categories include:
- Single (individual) accounts
- Joint accounts
- Certain revocable trust accounts
- Certain retirement accounts (like some IRAs)
- Business accounts for corporations, LLCs, and partnerships
Each qualifying category gets its own $250,000 limit at the same bank, per depositor.
Real‑world examples with CIT Bank
Let’s use simple names and numbers.
Example 1: One person, only individual accounts at CIT
- Maria has $150,000 in a CIT Savings account.
- She also has $120,000 in a CIT CD.
Both are in her name alone.
Total individual deposits at CIT: $270,000.
FDIC coverage:
- First $250,000 is insured.
- $20,000 is uninsured risk at that bank, in that category.
Example 2: Same person, but uses joint account too
Maria adds a joint CIT savings account with her husband, John.
That joint account holds $100,000.
Now the picture:
- Maria’s individual accounts at CIT: $270,000 total
- Maria and John’s joint account at CIT: $100,000
Coverage:
- Maria gets up to $250,000 for her individual accounts.
- For the joint account, each co‑owner gets $50,000 in coverage.
- So Maria has $50,000 insured in the joint account.
- John has $50,000 insured under his name.
Now only $20,000 of Maria’s total is uninsured, not $120,000.
Same bank. Same FDIC rules. Smarter structure.
Ways to Maximize Your FDIC Insurance at CIT Bank
You don’t need complex tricks. Just use the FDIC categories properly.
1. Spread money across categories, not random accounts
Opening five different CIT savings accounts in your name alone does not increase coverage. The FDIC adds those together.
What can help instead:
- One individual savings account in your name
- One joint savings account with your spouse
- Properly titled trust accounts, if you use a living trust
- Separate business accounts if you own an LLC or corporation
Each category has its own $250,000 limit, per depositor.
2. Use multiple banks if balances are very high
If you consistently hold more than FDIC limits at one institution, consider more than one bank.
For example:
- Keep $250,000 in CIT Bank under your name
- Keep another $250,000 at a different FDIC‑insured bank
This gives you $500,000 fully insured while still keeping things simple.
The FDIC even offers a free coverage calculator, called EDIE, on FDIC.gov. You can plug in your account types and balances to check your exact insured amount. I’ve used it myself when juggling accounts between online banks.
CIT Bank vs Other Banks: FDIC Coverage and Practical Differences
FDIC protection is the same at all member banks.
The difference is in features, not coverage.
Here’s a simple comparison to put CIT in context:
| Feature | CIT Bank (Online Division) | Typical Local Brick‑and‑Mortar Bank |
|---|---|---|
| FDIC member? | Yes, through First‑Citizens Bank & Trust Co. | Usually yes, check “Member FDIC” logo |
| Standard FDIC insured amount | $250,000 per depositor, per category | Same $250,000 standard |
| Branch access | No physical branches | Local branches and in‑person tellers |
| Typical high‑yield savings APY* | Often higher than big banks | Often much lower |
| Minimum opening deposit | Often $100 or less | Sometimes $25–$100 |
| Best for | Rate shoppers, online banking fans | People who love face‑to‑face service |
*Rates change frequently; check current CIT and competitor rates.
Sites like NerdWallet and Bankrate regularly compare savings yields for U.S. banks.
How to Check Your CIT Bank FDIC Coverage Step by Step
If you want to verify your own coverage, here’s a quick approach.
- List every CIT account you have
Include savings, checking, money market, and CDs. Write balances next to each. - Label the ownership type
Is it individual, joint, trust, or business?
Be honest and follow how the account is titled on statements. - Group balances by depositor and category
For you alone, add every individual account together.
For you and your spouse together, add each joint account together. - Compare each group to $250,000
If a group is under $250,000, it’s fully insured.
Any amount over that is uninsured under current rules. - Double‑check with FDIC’s EDIE tool
According to FDIC.gov, EDIE gives an official coverage estimate.
It’s free and doesn’t require personal identifying information, only balances and types.
If you’re still unsure, you can call CIT Bank customer service and ask about how your accounts are titled. They can’t give legal advice, but they can confirm categories.
Red flags vs. safe signs when saving more than $250,000
Here’s how I personally look at it when balances grow.
Red flags:
- You have one huge individual savings account, well above $250,000
- You assume multiple accounts at the same bank mean multiple coverage limits
- You never checked if the bank is actually FDIC insured
Safe signs:
- You know exactly which deposits are fully covered
- Large balances are split by ownership category or across banks
- You’ve verified the bank on FDIC.gov’s BankFind tool
Investopedia notes that FDIC insurance has protected insured deposits since the 1930s whenever a member bank failed. That record is a big reason many savers prefer insured bank accounts over uninsured cash‑like investments.
Suggested image alt text
“Screenshot of CIT Bank online account page showing ‘Member FDIC’ and deposit balances.”
FAQs About the CIT Bank FDIC Insured Amount
1. Is every CIT Bank account FDIC insured up to $250,000?
All deposit accounts at CIT Bank are covered by FDIC insurance, up to the standard limits. That includes savings, money market accounts, checking, and CDs.
The $250,000 limit applies per depositor, per insured bank, per ownership category. If you hold more than that in one category, some of it may be uninsured.
2. How can I increase my CIT Bank FDIC insured amount legally?
You can’t change the basic $250,000 per depositor, per category rule. But you can structure accounts to maximize coverage:
- Use both individual and joint accounts when appropriate
- Consider a properly titled revocable trust account
- Keep business funds in separate business accounts
If your total still exceeds coverage, consider opening accounts at another FDIC‑insured bank.
3. Are CIT Bank CDs FDIC insured or risky?
CIT Bank CDs are FDIC insured deposit products.
They’re covered up to the same $250,000 limit for your CD plus any other individual deposits you hold there.
The main risk with CDs is interest‑rate and early withdrawal penalties, not bank failure. If the bank failed, the FDIC would either transfer your CD to another bank or pay you your insured principal and interest, according to FDIC rules.
4. What happens to my CIT deposits if CIT Bank fails?
If an FDIC‑insured bank fails, the FDIC steps in as receiver. According to the FDIC, insured depositors usually get access to their money within a few business days, often the next business day.
Your insured CIT deposits would be either:
- Transferred to another healthy bank, or
- Paid out directly by the FDIC
Any amounts over your insured limit become part of the receivership process, which may or may not be fully recovered.
5. Does FDIC insurance cover CIT Bank money market and savings accounts?
Yes. CIT Bank savings accounts and money market accounts are both FDIC‑insured deposit accounts.
As long as your total balances stay within the FDIC limits for your ownership category at that bank, your funds are protected by the federal government under current law.