CDARS - Certificate of Deposit Account Registry Service
There are few guarantees in life FDIC insurance is one of them. CDARS can be a valuable cash management or longer-term investment tool for you. With CDARS, you can access FDIC protection on multi-million dollar CD investments through Community Bank & Trust.
Benefits of CDARS
- Safety - You can make funds eligible for multi-million dollar FDIC insurance coverage1.
- Convenience - You work directly with us. You earn one interest rate per maturity and receive one regular statement. Individual investors receive one year-end tax form.
- Community Investment - The full amount of your deposit can support lending opportunities in your local community2.
- CD-Level Rates - Your money earns CD-level returns which may compare favorably with other investment alternatives, including treasuries, corporate sweep accounts, and money market funds.
How does CDARS work?
We are a member of the CDARS Network. When you place a large amount with us, we place your funds into CDs issued by other banks in the same network in increments of less than the standard FDIC insurance maximum so that both principal and interest are eligible for FDIC protection. As a result, you can receive coverage from many banks while working directly with just one.
These exchanges, which occur on a dollar-for-dollar basis, can bring the full amount of your original deposit back to our bank. As a result, we can make the full amount of your deposit available for community lending in the local community.
What else should I know?
Now, you no longer have to spend time managing multiple bank relationships, administering various interest rates, organizing interest disbursements from various sources, or manually consolidating monthly statements. This reduces your administrative burden, especially during tax and financial reporting seasons.
And with CDARS, you can eliminate the need to monitor changing collateral values on an ongoing basis - another time saving convenience.
Of course, your confidential account information remains protected.
Ask us about how CDARS can work for you the next time you visit one of our branches or email us for more information.
