CDARS® for Public Funds
Through the CDARS® service, your government entity can have easy access to multi-million-dollar FDIC insurance on its CD investments.
One Bank. Public-fund investors like you can access multi-million-dollar FDIC insurance coverage by working directly with just one bank – one you know and trust.
One Rate. Investors negotiate one rate for each CD maturity and enjoy the option of reinvesting funds through a simple process.
One Statement. Investors receive one easy-to-read statement summarizing all of their CD holdings.
By providing access to FDIC insurance, CDARS can help your public unit comply with investment policy mandates. And with access to FDIC insurance, your organization can say “goodbye” to ongoing collateralization requirements (including tracking changing collateral values on a continuous basis). All of this means you can devote more time to other activities in support of your public unit.
Read about what people say about CDARS for public-fund investors.
Forty-five states and the District of Columbia are CDARS-enabled:
Availability of CDARS for public-fund investors by state.
CDARS received very positive reviews in a March 8 Standard and Poor’s Credit FAQ piece entitled, "What Effect Will The Certificate Of Deposit Accounts Registry Service Program Have On Fund Ratings?” In the report, Standard and Poor’s stated that, from a credit perspective, it deems CDs issued through CDARS to be “AAA/A-1+” equivalent. Excerpts from the report are available at Crane Data.
Limits apply. 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. Public-fund deposits must be placed through a CDARS®
ReciprocalSM transaction to ensure that the total dollar amount is maintained by the financial institution that offers
CDARS.
Funds may be submitted for placement only after a depositor has signed a CDARS Deposit Placement Agreement
with a CDARS Network member. This agreement contains important information and conditions regarding the placement
of funds.
CDARS is a registered service mark of Promontory Interfinancial Network, LLC.