How CDARS® Works

Everything is handled through a CDARS Network member of your choice. The thousands of financial institutions that can offer CDARS are members of a unique network. When you place a large deposit with a CDARS Network member, that institution uses the CDARS service to place your funds into CDs issued by other members of the CDARS Network.

This occurs in increments below the standard FDIC insurance maximum ($250,000) so that both principal and interest are eligible for FDIC insurance. By working directly with just one institution, you can receive coverage from many. And, you receive just one regular, consolidated account statement.

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

	You sign a CDARS Deposit Placement Agreement and a custodial agreement, and then invest money with a member of the CDARS Network (a relationship institution).
	Your funds are placed using CDARS.
	Your CDs are issued by other members in the CDARS Network.
	You receive confirmation of your CDs from your relationship institution.
	You receive consolidated interest payments and statements through your relationship institution.

For general information, please check our FAQs page.