Are All Certificates of Deposit (CDs) FDIC Insured? What You Need to Know

Learn which CDs are FDIC insured and which are not, including differences for credit unions and brokerage-held CDs. Know your coverage before investing.

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Yes, there are CDs not FDIC insured. CDs issued by non-bank financial institutions, such as credit unions, might not be covered by the FDIC but could be insured by the National Credit Union Administration (NCUA), which offers similar protections up to certain limits. Additionally, CDs bought through a brokerage might not be directly insured unless they are held in FDIC-insured banks within the brokerage. It's crucial to verify the insurance status of any CD before purchasing, especially if the institution is not a traditional bank.

FAQs & Answers

  1. Are all CDs automatically FDIC insured? No, only CDs issued by FDIC-member banks are insured by the FDIC. CDs from credit unions are insured by the NCUA, and some CDs bought through brokerages may not be directly insured.
  2. How can I verify if a CD is FDIC insured? You can check the bank's FDIC membership status on the official FDIC website or ask your bank or broker directly about the insurance coverage for the CD.
  3. What insurance protects credit union CDs if not FDIC? Credit union CDs are insured by the National Credit Union Administration (NCUA), providing similar protection to the FDIC up to specified limits.

Watch More

For more insights on safe investment options, explore our guides on FDIC insurance limits, how to evaluate bank products, and understanding credit union protections to safeguard your savings effectively.

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