All CDs offered at Scottrade are insured by the Federal Deposit Insurance Corporation for up to $250,000 per depositor per institution. FDIC is an independent agency of the U.S. government. FDIC insurance is backed by the full faith and credit of the United States government.
The face amount of the CD as well as accrued interest through the date of the financial institution closing (failure) is included when calculating insurance coverage. If accrued interest is owed on a $250,000 CD at a failed bank institution, only the principal on the $250,000 principal would be insured.
Joint accounts can be insured up to $250,000 per person. The $250,000 limit applies per person, not per account. So, if a single person has holdings in multiple joint accounts in the same insured bank, that individual's holdings will be added together and insured for up to $250,000.
Note: By purchasing CDs from multiple issuers or in different categories of legal ownership, the investor can expand FDIC insurance well beyond the $250,000 limit. It is the investor's responsibility to monitor the total amounts of your deposits in any one financial institution.
Scottrade is not responsible for any insured or uninsured portion of your deposits. If a CD is purchased on the secondary market at a premium to par, the premium portion is not covered by FDIC insurance.