Is CIT Bank FDIC Insured? The Ultimate 2025 Guide You Must Read

When you're choosing a new bank, especially a high-yield online bank, one question towers above all others: Is my money safe? In the world of banking, the gold standard for safety is FDIC insurance. If you're considering CIT Bank for its competitive interest rates and digital-first approach, you need to know if it has this crucial protection.

The short answer is a resounding yes. But how it works, what the coverage limits are, and the details behind its membership are essential for your financial peace of mind.

This ultimate 2025 guide will break down everything you need to know about CIT Bank and its FDIC insurance status.

Understanding CIT Bank: Who They Are

Before we dive into the insurance details, let's get to know the bank itself. CIT Bank is not a newcomer; it has a long history and has recently undergone a significant change that is key to understanding its FDIC status.

Brief history of CIT Bank

Founded in 1908, CIT Group has a long-standing history in financing and banking. For years, CIT Bank operated as its online banking arm, becoming popular for its high-yield savings products.

The most important recent development occurred in January 2022, when CIT Bank merged with and became a division of First Citizens BancShares, Inc. This means that today, CIT Bank operates under the charter of its parent company, First Citizens Bank & Trust Company. This is a critical point we'll revisit when verifying its FDIC insurance.

Services and products offered

CIT Bank specializes in offering competitive rates on a variety of deposit accounts, including:

High-Yield Savings Accounts: Like their popular Savings Connect account.
Money Market Accounts: Combining features of savings and checking.
Certificates of Deposit (CDs): Including Term CDs, No-Penalty CDs, and Jumbo CDs.
eChecking Accounts: Interest-bearing checking with minimal fees.

What Does FDIC Insurance Mean?

The term "FDIC insured" is thrown around a lot, but what does it actually guarantee?

FDIC definition and purpose

The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government. It was created in 1933 in response to the thousands of bank failures during the Great Depression. Its primary purpose is to maintain stability and public confidence in the nation's financial system by insuring deposits in member banks.

How FDIC protects depositors

If an FDIC-insured bank ever fails, the FDIC steps in to protect the bank's depositors. It ensures you don't lose your insured money. The FDIC will either arrange for another healthy bank to take over the failed bank's accounts or pay depositors directly for their insured funds, up to the legal limit.

Is CIT Bank FDIC Insured? (Direct Answer)

Yes, CIT Bank is absolutely FDIC insured.

CIT Bank’s FDIC membership explained

Because CIT Bank is a division of First Citizens Bank & Trust Company, all deposits made with CIT Bank are held by First Citizens Bank. First Citizens Bank is a long-standing member of the FDIC (FDIC Certificate #11063).

Therefore, when you deposit money into a CIT Bank account, your funds are protected by the FDIC's full faith and credit, just as they would be at any major national bank. The FDIC logo is prominently displayed on CIT Bank's website and in its official documentation.

Coverage limits for CIT Bank customers

The standard FDIC insurance coverage is $250,000 per depositor, per insured bank, for each account ownership category. This is the same maximum coverage you would receive at any other FDIC-insured institution.

How FDIC Insurance at CIT Bank Works

Understanding what is and isn't covered is key to maximizing your protection.

What accounts are covered

The FDIC insures deposit accounts, which means your primary CIT Bank products are protected. These include:

Savings Accounts (e.g., Savings Connect)
Money Market Accounts
Certificates of Deposit (CDs)
Checking Accounts (e.g., eChecking)
Cashier's checks and other official items issued by the bank.

What accounts are not covered

FDIC insurance is designed to protect deposits, not investments. Items not covered by the FDIC include:

Stocks, bonds, and mutual funds
Annuities
Life insurance policies
U.S. Treasury securities (T-bills, notes, etc.)
Contents of a safe deposit box

Benefits of CIT Bank Being FDIC Insured

This government-backed guarantee provides two massive benefits for you as a customer.

Protection during bank failures

The ultimate benefit is security. In the unlikely event that First Citizens Bank were to fail, your insured deposits at CIT Bank (up to $250,000 per ownership category) would be 100% safe and returned to you by the FDIC.

Peace of mind for depositors

Knowing your hard-earned money is protected allows you to focus on your financial goals. You can take advantage of CIT Bank's competitive interest rates without worrying about the underlying stability of the institution. It's the bedrock of trust in the banking system.

CIT Bank FDIC Insurance Coverage Limits Explained

The $250,000 limit is more flexible than it first appears. It applies "per depositor, per ownership category." Here’s how that works:

Single accounts

An account owned by one person is insured up to $250,000.

Joint accounts

An account owned by two or more people is insured up to $250,000 for each owner.

Example: A married couple with a joint account at CIT Bank is insured for up to
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500,000(500,000(250,000 for each spouse).
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Retirement accounts (IRA, etc.)

Certain retirement accounts, such as Individual Retirement Accounts (IRAs), are considered a separate ownership category. Your IRA deposits are insured separately up to $250,000.

Important Note: Because CIT Bank is a division of First Citizens Bank, your total deposits across both institutions are combined for FDIC insurance purposes. If you have $200,000 in a CIT Bank savings account and $100,000 in a First Citizens Bank savings account (both in your name alone), then $50,000 of your total $300,000 would be uninsured.

Common Misconceptions About FDIC Insurance

FDIC does not cover investments

A common mistake is thinking the FDIC protects against market loss. If you buy stocks or mutual funds through a bank's brokerage service, that money is not FDIC insured and can lose value.

FDIC does not cover fraud or scams

If you are the victim of a phishing scam or if someone steals your login credentials and takes money from your account, FDIC insurance does not apply. However, banks have other protections for electronic transfers (like Regulation E) that can help you recover fraudulent transactions.

How to Verify CIT Bank’s FDIC Insurance

Don't just take our word for it. You can and should verify any bank's FDIC status for yourself.

FDIC BankFind tool

The FDIC has an official online tool called BankFind.

Go to the FDIC BankFind website.
In the search bar, type "First Citizens Bank & Trust Company".
You will see its official record, confirming it is an active FDIC-insured institution (Certificate #11063). The record will also list "CIT Bank" as one of its trade names.

Checking CIT Bank’s official site

Scroll to the bottom of the CIT Bank homepage. You will see the official "Member FDIC" logo and a disclosure statement explicitly stating that CIT Bank is a division of First Citizens Bank & Trust Company, Member FDIC.

CIT Bank vs Other FDIC-Insured Banks

Comparison with top online banks

From a safety perspective, CIT Bank is on equal footing with other major FDIC-insured online banks like Ally Bank, Marcus by Goldman Sachs, and Capital One. As long as your deposits are within the $250,000 limit, your money is equally safe at any of these institutions. The primary differences will be in interest rates, account features, fees, and customer service.

Safety ranking and reputation

As a division of First Citizens Bank, CIT Bank is part of one of the largest banks in the United States. First Citizens has been in operation since 1898 and has a long-standing reputation for stability and prudent management, giving depositors an extra layer of confidence.

FAQs About CIT Bank FDIC Insurance

Q: So, is CIT Bank a real bank?
A: Yes. It is a legitimate, well-established online banking division of First Citizens Bank, a large, national bank that is a member of the FDIC.

Q: What if I have accounts at both CIT Bank and First Citizens Bank?
A: Your deposits at both will be added together to determine your total FDIC coverage. The $250,000 limit applies to your combined total across all deposit accounts at the single insured institution (First Citizens Bank).

Q: How quickly does the FDIC pay depositors if a bank fails?
A: The FDIC acts very quickly. By law, it must pay insured deposits "as soon as possible." Historically, the FDIC usually begins making payments within a few business days of a bank's closure.

Q: Is the money in my CIT Bank eChecking account protected?
A: Yes. Checking accounts are deposit accounts and are fully covered by FDIC insurance up to the legal limit.

Conclusion: Is CIT Bank FDIC Insured and Safe for Your Money?

Yes, unequivocally. Your money at CIT Bank is safe. As a division of First Citizens Bank, all of its deposit accounts are protected by the full faith and credit of the U.S. government through FDIC insurance.

By offering standard FDIC coverage of $250,000 per depositor, per ownership category, CIT Bank provides the same level of security as the largest brick-and-mortar banks in the country. Now that you can bank with the confidence that your principal is secure, you can focus on taking advantage of the competitive interest rates that make CIT Bank an attractive choice for your savings in 2025 and beyond.

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