FDIC insurance exists so ordinary savers do not have to study bank finances to keep day-to-day money safer if a bank fails. The figure most people know is $250,000 per depositor, per insured bank, for each ownership category.
That cover is valuable. It will not remove a CD early-withdrawal penalty, and it will not stop investment prices from falling.
Details that catch people out
Joint accounts and retirement accounts can be treated under different ownership rules. Credit unions usually use NCUA cover instead of FDIC. If you save through an app, find out which bank actually holds the deposit.
If your balance is above the cover at one bank, spreading money across banks is sensible.
Brokered CDs need extra reading
CDs bought through a broker can be useful, but the rules for selling early can differ from a CD opened directly with your bank. Read those terms before you buy.