May 16, 2008  |  Home

Smart InvestingEnjoy $30 Million in FDIC Insurance

StatementCDARS® is a valuable tool for managing your association’s cash reserves. By providing access to $30 million in FDIC insurance through a single bank, CDARS offers you a convenient way to manage accounts while satisfying fiduciary obligations.

How does CDARS work?

Banks that offer CDARS are members of a special network. When your association places a large deposit with a network member, that bank uses the CDARS service to place the funds into CDs issued by other members of the network. This occurs in increments of less than $100,000 to ensure that both principal and interest are eligible for full FDIC protection.Other network members do the same things with their customers’ funds. With help from a sophisticated matching system, banks exchange funds with other members of the network. These exchanges, which occur on a dollar-for-dollar basis, bring the full amount of your association’s originaldeposit back to its bank. As a result, the bank can make the full amount of the deposit available for community lending purposes (the money stays local!) and yourassociation can access FDIC insurance coverage from many banks while working with just one.

What else should I know?

With access to full insurance, your association can say “goodbye” to surety bonds, collateralization requirements, or opening accounts at different banks in different insurable capacities. There also isno need to manually consolidate account statements or interest disbursements on a recurring basis. This reduces administrative burdens (especially during tax and financial reporting seasons) and frees up valuable time. So, your association can skip the extra paperwork while enjoying the peace of mind associated with access to full insurance. And, everyone can rest assured knowing that confidential information remains protected.

Why CDARS?

With CDARS, your association gets:

One Bank

Investors can access multi-million dollar FDIC insurance coverage by working with just one bank –the bank they know and trust.

One Rate

Investors negotiate one rate for each CD maturity and enjoy the option of reinvesting them through a simple process.

One Statement

Investors receive one easy-to-read statement summarizing all of their CD holdings.

Contact Us

Call us at 602-553-7474
Or contact us online

 

Funds may be submitted for placement only after a depositor enters into an agreement with a network member bank. With your consent, the bank may choose to receive fee income instead of deposits from other banks. Under these circumstances, deposited funds would not be available for local lending, which may not satisfy your local investment goals/mandates.CDARS is a registered service mark of Promontory InterfinancialNetwork, LLC.

Member FDIC | Equal Housing Lender