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Are index-linked Certificates of Deposit (CDs) FDIC insured?

The principal amount of an index-linked CD is insured by the FDIC up to the maximum applicable deposit insurance coverage. However, any contingent interest owed to the investor generated by the index-linked CD is the obligation of the issuing bank and is not insured by the FDIC.

In order to determine the amount of FDIC insurance coverage, the investor must include the principal amount of the index-linked CD, together with all other deposits maintained by the investor at the bank.

Last Reviewed: April 2021

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on should not be construed as legal advice or a legal opinion of the OCC.

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