How does CDARS work?
We are members of a special network. With help from a sophisticated matching system, we exchange deposits with other banks that are members of the network. When you place a large amount with us, we place your funds into certificates of deposit issued by other banks in the network. We do this in increments of less than $100,00 so that both your principal and interest are eligible for complete FDIC protection. Other banks do the same thing with their customers’ funds. Using CDARS, we swap your funds on a dollar-for-dollar basis with other network members. As a result of these exchanges, you can access full FDIC coverage and the total value of your deposit can be made available for community lending purposes.
