Are Certificates of Deposit FDIC Insured?

Let’s talk about keeping your money safe! After all, wouldn’t you rather see your savings grow instead of watching it disappear? Certificates of deposit (CDs) are one of the most reliable savings account options for your money because they are low-risk and offer high returns. But do CDs have FDIC insurance? Stick around to find out!

FDIC Insurance Meaning

FDIC insurance is the “guardian for your green.” It protects your money if the unexpected happens—like bank failure. Backed by the Federal Deposit Insurance Corporation, FDIC insurance gives you confidence that your funds are safe.

Have you ever noticed the Member FDIC logo on your bank’s website? (It’s actually on this website right now! The symbol means your bank is covered by FDIC deposit insurance. The coverage limit is $250,000 per depositor, per insured bank, for each account ownership category. That’s a fancy way of saying your accounts are fully protected at FDIC-insured banks, as long as your account balance is $250,000 or less.

If you have more than $250,000 in one bank account, it’s smart to divide your money between banks or account types to make sure your money is fully insured. And remember, if your bank doesn’t have FDIC coverage, then you aren’t protected.

When did FDIC insurance start? The Federal Deposit Insurance Corporation was established in 1933 after the Great Depression to rebuild public confidence in the bank system. Why? The answer is simple: When banking clients know their money is safe, they are less likely to make large withdrawals during uncertain economic times.

Certificate of Deposit Meaning

A certificate of deposit (CD) is a type of deposit account offered by banks and credit unions. This account comes with its own special rules. First of all, CDs hold your money for a set length of time, known as the “term.” Your term might range from 30 days to 5 years—whatever length you decide when you open the account. During that timeframe, you cannot withdraw money from the certificate of deposit until it reaches “maturity.”

In exchange for letting your bank hold your money, you receive higher interest rates than regular savings accounts. This translates into more money in your pocket! Then, when your CD reaches maturity at the end of the term, you receive your initial deposit PLUS the interest earned—a guaranteed return for simply letting your money grow!

Are CD Accounts FDIC Insured?

YES! Certificates of deposit from FDIC-member banks are covered. Therefore, you can have multiple CDs or even build a CD ladder and still enjoy full federal protection on your savings. You just need to make sure the total amount you have in CDs at one bank doesn’t go over the $250,000 FDIC insurance limit.

The best part? This coverage includes both your original deposit and the interest you earn. That means your money isn’t just growing—it’s growing with a safety net. It’s one more reason CDs are a smart, secure choice for building your savings.

FDIC-Insured Accounts at Academy Bank: Certificates of Deposit

At Academy Bank, our team takes your financial security seriously. As a proud bank with FDIC insurance, we offer three types of CD accounts to fit your needs: Personal CDs, Business CDs, and CD IRAs for retirement savings.

Why pick a CD from Academy Bank?

• High CD interest rates for the best growth potential
• Flexible terms—choose between short-term CDs (as little as 30 days) and long-term CDs (up to 5 years)
• FDIC bank insurance for your peace of mind
• Guaranteed returns with no surprises
• CD laddering options for better access to your funds
• Convenient online tools like our CD Interest Calculator, Compound Interest Calculator, and CD Ladder Calculator

Your finances deserve certainty. Choose a certificate of deposit that fits your goals and get started today!

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