CDARS

What is CDARS?

CDARS® is the Certificate of Deposit Account Registry Service. And it’s the easiest, most convenient way to enjoy full FDIC insurance on deposit amounts larger than $250,000.

What makes CDARS so special?

One Bank

Everything is handled through our bank. Your large deposit is broken into smaller amounts and placed with other banks that are members of a special network. Then those member banks issue CDs in increments of less than the standard FDIC insurance maximum, so that your entire investment is eligible for FDIC insurance. By working with just one bank – our bank – you can receive insurance from many.

One Rate

You earn one rate on your entire investment – so you can forget about multiple rate negotiations and the need to consolidate multiple disbursement checks.

One Statement

You receive one regular account statement listing all of your CDs, along with their issuing banks, maturity dates, interest earned and other details. With CDARS, there’s no need to manually consolidate statements, track changing collateral values or use private surety bonds.

It’s that simple.

How does CDARS work?

When you’re ready to take advantage of CDARS, here’s what happens:

1. You enter into one agreement.
   You sign one simple Deposit Placement Agreement with us.
2. You select an interest rate and maturity.
   Based on our current CD options, you decide on a rate and a maturity that best matches your investment goals. Please call for current rates.
3. Funds are deposited.
   Using CDARS, we submit your funds for placement at member banks.
4. CDs are issued.
   Member banks issue CDs in denominations under $250,000 for maturities before January 1, 2014 (or under $100,000 for maturities after December 31, 2013) so your entire investment is eligible for full FDIC insurance coverage.
5. Confirmation is received.
   You receive written confirmation of your deposits and a listing of all your CDs.

That’s it. Using CDARS is just that easy.

What else should I know?

CDARS can significantly reduce your administrative burdens, especially during tax and financial reporting seasons; there’s no need to manually consolidate statements or interest disbursements or to calculate blended rates.

Additionally, with CDARS, you can say “goodbye” to surety bonds, ongoing collateralization requirements (like monitoring changing collateral values on a recurring basis), and opening accounts at different banks in different insurable capacities. Plus, you will receive just one statement from Elsewhere Bank listing all of your CDs. All of this will save you time and money.

As always, your confidential information remains protected.