Certificate of Deposit Account Registry Service (CDARS)
CDARS is one of the safest and smartest tools for investors looking to protect deposits that exceed the standard FDIC insurance maximum of $250k while earning CD-level returns that may compare favorably to Treasury and money market mutual funds.
Investing through CDARS can be a strong alternative to Treasuries and goverment money market mutual funds. Like Treasuries and goverment-backed money funds, FDIC insurance is backed by the full faith and credit of the U.S. goverment.
CDARS offers multiple benefits to investors who want to combine the security of access to FDIC insurance with the convenience of working directly with just ONE financial institution.
- Peace of Mind. Using the CDARS service, you can access multi-million-dollar FDIC insurance on CD investments.
- One Relationship. You work directly with our financial institution.
- One Rate. You negotiate one interest rate per maturity on CD investments placed through CDARS. With CDARS, there is no need to negotiate multiple rates or tally disbursements for each CD.
- One Statement. You receive one regular statement detailing your CD investments. You no longer need to manually consolidate statements at the end of each month, quarter, or year.
- No Hidden Fees. You will not be charged annual fees, subscription fees, or transaction fees for using CDARS. The rate you see is the rate you get.
- No Ongoing Collateralization. Because CDARS deposits are eligible for FDIC protection, you can eliminate ongoing collateral tracking.
- A Wide Variety of Maturities. Select from various maturities—ranging from 4 weeks to 260 weeks (5 years)—and choose the terms that best suit your investment needs.
- Community Investment. The full amount of your funds can support lending initiatives that strengthen your local community.1
CDARS: Frequently Asked Questions
Placement of funds through the CDARS service is subject to the terms, conditions, and disclosures in the service agreements, including the Deposit Placement Agreement (“DPA”). Limits apply. Although funds are placed at destination banks in amounts that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”), a depositor’s balances at the relationship institution that places the funds may exceed the SMDIA (e.g., before CDARS settlement for a deposit or after CDARS settlement for a withdrawal) or be ineligible for FDIC insurance (if the relationship institution is not a bank). As stated in the DPA, the depositor is responsible for making any necessary arrangements to protect such balances consistent with applicable law. If the depositor is subject to restrictions on placement of its funds, the depositor is responsible for determining whether its use of CDARS satisfies those restrictions. CDARS is a registered service mark of Promontory Interfinancial Network, LLC.