Identify the issuing bank
For direct and brokered CDs, record the actual issuing institution rather than only the broker or marketing brand.
Find the issuing bank's legal name and insurance status. A brokerage, financial app or marketing brand may not be the bank that holds the deposit. Save the confirmation that connects the CD to the actual issuer.
Calculate coverage before chasing yield
| Situation | What to do next |
|---|---|
| Multiple products, same bank | Aggregate them within the ownership category. |
| Broker holds the CD | Verify issuer and recordkeeping. |
| Interest approaches the limit | Leave room for accrued amounts. |
Aggregate the category
Add CDs, savings and other insured deposits held in the same ownership category at that bank, including expected interest.
Group eligible deposits by bank and ownership category, then include interest expected to accrue. Multiple CDs, branches or account numbers do not automatically create separate coverage. Use the official estimator when ownership is complex.
Preserve records
For brokered holdings, keep confirmations and ownership information needed to support pass-through coverage requirements.
Brokered holdings depend on accurate records that identify the customer interest. Keep trade confirmations and account statements. Deposit insurance can address qualifying bank failure, but it does not protect against a loss from selling a CD before maturity.
Three boundaries to protect
Eligible bank CDs can be insured deposits; the product label alone is not enough.
Coverage aggregates qualifying deposits by bank and ownership category.
Brokered CDs require accurate issuer and ownership records.
Check the downside, access and exit
Primary sources
- FDIC: Shopping for a certificate of depositOfficial reference ↗
- FDIC: Deposit insuranceOfficial reference ↗
Answers to check before you act
Does each CD at one bank receive separate coverage?
No. Eligible deposits are aggregated under the applicable ownership category.
Is a brokered CD insured by the brokerage?
Deposit insurance, when requirements are met, relates to the issuing insured bank and ownership records, not brokerage failure protection.