CDARS is one of the safest, smartest vehicles for investors looking to protect their large-dollar deposits while earning CD-level returns.
CDs placed through CDARS offer:
access to multi-million-dollar FDIC insurance
the ease of working through one trusted relationship, earning one rate per maturity, and receiving consolidated statements
relief from ongoing collateralizationâ€”because CDARS deposits are eligible for FDIC protection, you can eliminate ongoing collateral tracking
a finite maturity date (in contrast to auction-rate or some adjustable-rate securities)
the ability to have the amount of your deposit available to support lending initiatives that strengthen the local community
When deposited funds are exchanged on a dollar-for-dollar basis with other banks that use CDARS, our bank can use the full amount of a deposit placed through CDARS for local lending, satisfying some depositors' local investment goals or mandates. Alternatively, with a depositor's consent, our 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.