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Why CDARS®

CDARS offers multiple benefits to depositors who want to combine the security of access to FDIC insurance above $250,000 with the convenience of working directly with just one financial institution and the ability to earn interest.

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Peace of Mind

Rest assured your CDARS deposits are eligible for multi-million-dollar FDIC insurance and aren't subject to floating net asset values that can lead to loss of principal and erase returns during a down market or period of high market volatility.

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One Relationship

Banks that offer CDARS are members of a special network, the CDARS Network. You work directly with a local CDARS Network member – a financial institution you know and trust. Get personalized, high-touch service from a local bank and forgo the need to manage multiple bank relationships.

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One Rate

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

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One Statement

You receive one easy-to-read statement detailing all of your CD holdings. You can know where your funds are at all times, and there is no longer a need to manually consolidate statements.

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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.

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A Wide Variety of Maturities

You can select from various maturities – ranging from 4 weeks to 3 years – and choose the terms that best suit your investment needs.

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Community Investment

Your funds can support lending initiatives that strengthen your local community.1 Alternatively, funds may be directed to support lending via minority-owned banks or Community Development Financial Institutions in economically distressed areas. See CDARS for Socially Responsible Investors, or view a short video about one local bank's impact on the community thanks to CDARS. 



CDARS is a smart, convenient way to safeguard your large deposits. It’s a great solution for many businesses, nonprofits, and governmental organizations (e.g., cities and counties, public schools, police and fire districts), as well as fiduciaries, advisors, socially responsible investors, and individuals. Learn How CDARS Works and visit the customer testimonials and Case Studies for real-life examples of CDARS in action.

[1] 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.

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