Community OutreachFAQ

Why CDARS®?

CDARS offers multiple benefits to depositors 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.1

One Relationship. You work directly with a local CDARS Network member – a financial institution you know and trust.

One Rate. You negotiate one interest rate per maturity on CD investments placed through CDARS. There is no need to negotiate multiple rates per maturity or tally disbursements manually for each CD.

One Statement. There is no need to manually consolidate statements. You receive one easy-to-read statement detailing all of your CD holdings.

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 may not need to collateralize your deposits. This can eliminate the time-consuming task of tracking changing collateral values on a recurring basis.2

A Wide Variety of Maturities. You can 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. Your funds can support lending initiatives that strengthen your local community.3 See CDARS for Socially Responsible Investors.

Find financial institutions offering CDARS.

[1] Limits apply. Funds may be submitted for placement only after a depositor enters into a CDARS Deposit Placement Agreement with a CDARS participating institution. This agreement contains important information and conditions regarding the placement of funds.

[2] If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor's funds through CDARS or a particular CDARS transaction satisfies those restrictions.

[3] When deposited funds are exchanged on a dollar-for-dollar basis with other banks in the CDARS Network, the relationship institution 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, the relationship institution may choose to receive fee income instead of deposits from other participating institutions. Under these circumstances, deposited funds would not be available for local lending.

CDARS is a registered service mark of Promontory Interfinancial Network, LLC.