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Protecting Public Funds and Taxpayer Money Through Reciprocal Deposits

Silver, red and blue top hat-shaped safe representing that the CDARS and ICS services are used by government organizations across the United States.

Across the United States, thousands of local and state governmental organizations use reciprocal deposit placement services to access multi-million-dollar FDIC insurance through a single bank relationship. In this way, they are able to safeguard taxpayer money, to eliminate the burden of ongoing collateral tracking, and to keep the full amount of funds placed with a local bank (where it can support local lending initiatives).

CDARS® and its sister service, Insured Cash Sweep® (which offers customers access to FDIC insurance beyond $250,000 for funds placed into demand deposit accounts, money market deposit accounts, or both), are the nation's leading reciprocal deposit placement services. Using ICS, funds can be placed into demand deposit accounts or money market deposit accounts, and using CDARS, funds can be placed into CDs.

Here are a few facts about how public entities—including city, county, and state treasurers; school districts; police and fire districts; and public hospitals—are CDARS and Insured Cash Sweep.

  • Fifty states have laws that enable governmental entities to protect deposits through CDARS and Insured Cash Sweep.
  • Last year, thousands of governmental entities utilized Insured Cash Sweep or CDARS to access multi-million-dollar FDIC insurance through a single bank relationship, and, together, they placed billions of dollars through these services.

Interested in learning more?

Fill out the form below to receive an infographic that shows the top states that use ICS and CDARS services.

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