Protect Your Deposits and Help Underserved Communities
CDARS for Socially Responsible Investors
You want to make a difference in communities that need it most, but you also want to make sure your funds are secure…. Why not do both? With the CDARS® service, you can! With this service, you can access multi-million-dollar FDIC insurance, earn a return, and help make communities economically stronger and healthier.
How? By placing funds with a Community Development Financial Institution (CDFI)1 bank that offers CDARS. When you do this, the bank can use the full amount of your funds to make loans in the local community—loans for critical initiatives, like producing affordable housing, financing small businesses, creating jobs, and expanding neighborhood facilities that provide much-needed services for low-income families.2
CDARS enables large-dollar depositors (large corporations, nonprofits, small business owners, public entities, and individuals) to put excess cash balances to work in CDs—interest-bearing deposits with access to multi-million-dollar FDIC insurance through a single bank relationship. See how CDARS works.
Mission-based banks across the nation offer CDARS. See if your bank is one of them, or find one that is.
Making a Difference in Communities Nationwide
CDARS is brought to you by Promontory Interfinancial Network—a trusted fintech provider chosen by more than 3,000 banks nationwide. In 2018, the company’s services helped mission-based banks—CDFIs and minority-owned banks—attract more than $2 billion in socially responsible investments (deposits).
Banking on Communities Initiative
Since 2004, CDARS have helped the Community Development Bankers Association (CDBA) raise billions of dollars in deposits with the launch of the Banking on Communities initiative—a joint effort by Promontory Interfinancial Network and the CDBA. The CDBA is a national trade association of the community development banking industry established to help its members better meet the credit needs of their communities, and the initiative helps CDBA member banks raise funds that can be used to increase lending in underserved communities. Because of their size (small) and location (underserved communities), CDBA members often find their funding options limited and have fewer resources to devote to attracting deposits.
“Half of our members rely on Promontory [Interfinancial Network's ICS and CDARS] services to attract deposits so they can make loans supporting community development in some of the most underserved urban neighborhoods and rural communities in the country. On average, the community development banks attract reciprocal deposits at four times the level of other community banks. That translates into loans to small businesses, loans for mortgages and home improvement, loans for revitalization projects—loans that otherwise would not be made.”
Chief Executive and Senior Policy Advisor
Community Development Bankers Association
- Community Development Financial Institutions include banks that dedicate the majority of their activities to serving economically distressed neighborhoods and those who otherwise lack access to traditional financial services. They are certified by the U.S. Treasury’s Community Development Financial Institutions Fund and provide credit and other financial services to underserved markets.
- When deposited funds are exchanged on a dollar-for-dollar basis with other banks in the CDARS Network, the full amount of the deposit placed through CDARS can be used for local lending, satisfying some depositors’ local investment goals or mandates. Alternatively, with a depositor’s consent, a CDARS Network member may choose to receive fee income instead of deposits from other banks. Under these circumstances, deposited funds would not be available for local lending.