CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY PROGRAM (CDARS)
One Bank. One Rate. One Statement.
And it’s the easiest, most convenient way to enjoy access to full FDIC insurance on large deposits.
Why is that?
Everything is handled through our bank. Your large deposit is broken into smaller amounts and placed with other banks that are members of the CDARS network. Then, those banks issue CDs in amounts under the standard FDIC insurance maximum, so that your entire investment is eligible for FDIC protection. By working with just one bank – our bank – you can receive insurance through many.
You earn one rate on your entire investment – so you can forget about multiple rate negotiations and the need to consolidate multiple disbursement checks.
You receive one regular account statement listing all of your CDs, along with their issuing banks, maturity dates, interest earned, and other details. With CDARS, there’s no need to manually consolidate statements, track changing collateral values, or use private surety bonds.
It's that simple.
How does CDARS work?
When you are ready to take advantage of CDARS, here’s what happens:
1. You enter into one agreement. You sign one simple Deposit Placement Agreement with us.
2. You select an interest rate and a maturity. Based on our current CD options, you agree to a rate and a maturity that best matches your investment goals.
3. Funds are deposited. Using CDARS, we submit your funds for placement at member banks.
4. CDs are issued. Member banks issue CDs in denominations under the FDIC maximum, so your entire investment is eligible for full FDIC coverage.
5. Confirmation is received. You receive written confirmation of your deposits and a listing of all of your CDs.
That’s it! Using CDARS is just that easy.
Click here to view a video on how CDARS works.
Who Uses CDARS
CDARS depositors come from many different markets within our Member Banks. Why? Because many types of customers are attracted to the benefits associated with the CDARS service: security of full FDIC insurance; CD-level rates; and convenience of working with one bank.
Of all sizes:
- Small business, including partnerships, sole proprietorships, and entrepreneurial ventures
- Mid-size companies (public and private)
- Corporations (public and private)
Of all Types:
- Government agencies
- Municipalities (villages, town, cities, counties)
- Police departments
- Fire districts
- Public colleges and universities
- Public hospitals
- School districts
- State Funds
- Utility districts (sewer, water, power, etc.)
- Colleges and universities
- Community foundations
- Endowment funds
- Homeowners associations
- Religious institutions
- Attorneys and law firms
- Banks and credit unions (for CRA credit or as earning assets)
- Financial planners
- 1031 tax-free property exchanges
- Estate planners
- Farms and ranches
- Private investors
Old Town Bank, Member FDIC. Funds may be submitted for placement through CDARS only after a depositor enters into the CDARS Deposit Placement Agreement with us. The agreement contains important information and conditions regarding the placement of funds by us using CDARS. With customer consent, we may choose to receive fee income instead of matching deposits from other banks. CDARS is a registered service mark of Promontory Interfinancial Network, LLC. A penalty for early withdrawal may apply. Please see your Bank Representative for complete details.