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When you place deposits through CDARS, you enjoy the benefits of One Bank, One Rate, One Statement®
One Bank. Access multi-million-dollar FDIC insurance coverage by working directly with just one bank – a bank you know and trust – and avoid the burden of tracking changing collateral values on an ongoing basis if you are accustomed to doing so.
One Rate. Earn one rate for each CD maturity and enjoy the option of reinvesting through a simple process. Historically, rates on CDs placed through CDARS have compared favorably to Treasuries.
One Statement. Receive one easy-to-read statement summarizing all of your CDARS holdings.
In addition, the full amount of your deposit placed through CDARS can support lending opportunities in a local community. You have the ability to make significant contributions to the banks serving communities in need and the satisfaction associated with making a difference.3
How Does CDARS Work?
When you deposit funds through a local bank that is a CDARS Network member, those funds are divided into smaller amounts and placed with other CDARS Network members. Then, those banks issue CDs in amounts below the standard FDIC insurance maximum ($250,000) so that both principal and interest are eligible for FDIC insurance.
Other Network members do the same thing with their customers’ funds, and a sophisticated matching system enables Network members to exchange funds with each other on a dollar-for-dollar basis. The resulting reciprocal transactions bring the full amount of the original deposit back to your bank, which can make the full amount of your invested funds available for lending in the local community.3
What Else Should I Know?
Your account information is protected; your banking relationship remains between you and your bank – the bank you know and trust.
 If you are subject to restrictions with respect to the placement of funds in depository institutions, it is your responsibility to determine whether the placement of funds through CDARS, or a particular CDARS transaction, satisfies those restrictions. Limits apply. Funds may be submitted for placement only after you enter into a CDARS Deposit Placement Agreement with a participating institution. The agreement contains important information and conditions regarding the placement of funds. CDARS and One Bank, One Rate, One Statement are registered service marks, and Reciprocal is a service mark, of Promontory Interfinancial Network, LLC.
 All CDBA members are CDFIs – a special designation by the U.S. Department of Treasury to recognize they primarily service economically distressed communities or populations.
 When deposited funds are exchanged on a dollar-for-dollar basis with other banks in the 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.