Complete Guide to CIT Bank FDIC Insurance: Protection & Coverage.

Protect Your Savings with CIT Bank’s FDIC Insurance

When you deposit money in a bank, you want to make sure it’s safe. One of the biggest concerns people have is whether their money is protected if the bank gets into financial trouble. CIT Bank, an online bank, offers FDIC insurance to keep your money safe. This means your funds are protected if anything happens to the bank. In this article, we’ll break down how CIT Bank’s FDIC insurance works and why it’s important for you.

What is CIT Bank?

CIT Bank is an online-only bank that offers a variety of financial services like savings accounts, checking accounts, CDs (Certificates of Deposit), home loans, and business loans. It’s known for offering higher interest rates, which makes it a good option if you want to grow your savings.

Since CIT Bank doesn’t have physical branches, it operates online. This helps keep costs low and allows them to offer better rates than traditional banks. However, it’s important to know how your money is protected, and this is where FDIC insurance comes in.

What Does "Insured" Mean in Banking?

When a bank is “insured,” it means your money is protected by the government if the bank fails. FDIC insurance, which stands for Federal Deposit Insurance Corporation, guarantees that you’ll get your money back up to $250,000 per person, per insured bank.

This protection covers deposit accounts like checking, savings, and CDs. But it doesn't cover investments like stocks, bonds, or mutual funds, so it's important to understand what is and isn’t insured.

CIT Bank’s FDIC Insurance Coverage

CIT Bank is FDIC-insured, meaning your deposits are protected up to $250,000 per person. Here’s what’s covered:

Checking Accounts

Your everyday transaction accounts are insured.

Savings Accounts

Your savings are also insured under FDIC protection.

Certificates of Deposit (CDs)

Money you put in a CD at CIT Bank is protected as well.

If you have a joint account with someone, each person is insured for $250,000, so a joint account could be protected for up to $500,000.

However, FDIC insurance doesn’t cover investments like stocks or mutual funds. For that, you’ll need different insurance, like SIPC insurance.

How FDIC Insurance Works at CIT Bank

If CIT Bank were to fail, FDIC insurance ensures that you’ll get your money back. The FDIC will either transfer your insured accounts to another bank or pay you the insured amount.

For example, if you have $200,000 in a CIT Bank savings account and the bank fails, you’ll get all $200,000 back. But if your balance exceeds the $250,000 limit, the extra amount won’t be covered. So it’s important to keep track of your balances.

What Types of Accounts Does CIT Bank Insure?

FDIC insurance covers the following accounts at CIT Bank:

Checking Accounts

For day-to-day transactions.

Savings Accounts

Great for growing your savings.

Certificates of Deposit (CDs)

Fixed interest accounts for a set period.

However, FDIC doesn’t cover investment products like stocks or bonds. For those, you would need SIPC insurance.

What Happens if You Exceed the FDIC Insurance Limit?

The FDIC covers up to $250,000 per person per insured bank. If your balance is more than that, the extra money isn’t covered. For example, if you have $300,000 in an account, only the first $250,000 is insured.

To protect more money, you can:

• Spread your funds across different banks: Each bank offers $250,000 in coverage.

• Use different types of accounts: Checking, savings, and CDs are each separately insured for $250,000.

By doing this, you can protect all your deposits.

Why Is FDIC Insurance Important?

FDIC insurance is crucial for several reasons:

• Peace of Mind: It reassures you that your money is safe, even if something happens to the bank.

• Automatic Coverage: FDIC insurance is included with eligible accounts at no extra cost.

• Protection from Bank Failures: If the bank fails, you won’t lose your money.

How CIT Bank Compares to Other Banks

Many banks offer FDIC insurance, but CIT Bank stands out because it offers higher interest rates on savings accounts and CDs than many traditional banks. Since CIT Bank is online-only, it can pass savings on to customers in the form of better rates while still keeping your money protected by FDIC insurance.

Alternatives to FDIC Insurance for Investment Protection

FDIC insurance covers deposit accounts, but not investments like stocks, bonds, or mutual funds. For those, you need SIPC insurance, which protects you if your investment firm fails.

If you have retirement accounts like IRAs, make sure the institution holding your investments provides the right protections for those funds.

Conclusion: Protect Your Savings with CIT Bank’s FDIC Insurance

CIT Bank’s FDIC insurance keeps your deposits safe, with coverage up to $250,000 per person. Whether you have a checking account, savings account, or CD, your money is protected. If you have more than $250,000, consider spreading your deposits across different accounts or banks to ensure everything is covered.

CIT Bank offers high-interest accounts along with the security of FDIC insurance, making it a great choice for anyone looking to protect their savings while earning more.

Ready to start saving with CIT Bank? Check out their FDIC-insured savings accounts and CDs today to earn competitive interest rates and enjoy the security of FDIC insurance.

FAQs

1. What does FDIC insurance cover at CIT Bank?

FDIC insurance covers your checking accounts, savings accounts, and CDs at CIT Bank, up to $250,000 per person.

2. How much money is insured at CIT Bank?

CIT Bank insures up to $250,000 per person for each eligible account.

3. What happens if I have more than $250,000 in one account at CIT Bank?

Any amount above $250,000 is not covered by FDIC insurance. To protect excess funds, you can spread them across multiple banks or account types.

4. Is FDIC insurance free at CIT Bank?

Yes, FDIC insurance is automatically included when you open an eligible account at CIT Bank at no extra cost.

5. Are joint accounts covered by FDIC insurance at CIT Bank?

Yes, joint accounts are insured for up to $250,000 per account holder, so a joint account with two people could be covered for up to $500,000.

6. Can I insure more than $250,000 at CIT Bank?

Yes, by splitting your deposits across different accounts or banks, you can ensure more than $250,000.

7. What accounts are not covered by FDIC insurance at CIT Bank?

FDIC insurance does not cover investments like stocks, bonds, or mutual funds.

8. How can I check if my CIT Bank account is FDIC-insured?

All eligible accounts at CIT Bank are automatically insured. You can verify this by checking CIT Bank’s website or contacting customer service.

9. What is the process if CIT Bank fails?

If CIT Bank fails, the FDIC will either transfer your insured deposits to another bank or pay you the insured amount directly.

10. Does FDIC insurance cover foreign deposits at CIT Bank?

FDIC insurance only covers deposits in U.S.-based accounts. If you have deposits in foreign accounts, FDIC insurance will not apply.