What is CDARS?
CDARS is the Certificate of Deposit Account Registry Service. It is the most convenient way to enjoy full FDIC insurance on deposits of up to $50 million. With CDARS, you sign one agreement with Harford Bank, earn one interest rate, and receive one regular statement. It’s that easy. CDARS is the perfect solution for many depositors — from non-profits and public funds to businesses, advisors (including trustees, CPAs, financial planners and lawyers) and individuals, as well as socially-motivated investors. You’ve worked hard for your money. Now let it work hard for you.
CDARS®, the Certificate of Deposit Account Registry Service®, available through the Reliance Trust Company, is a service with a sophisticated network that places customer deposits with FDIC-insured banks. Through this network, CD funds are placed in increments of less than the standard FDIC insurance maximum throughout a network of more than 2,900 banks so that both principal and interest are eligible for complete FDIC protection.
In the United States, federal regulations require banks to insure depositors’ money against bank failure through the Federal Deposit Insurance Corporation (FDIC). Every depositor’s accounts are insured up to a certain amount, such as $100,000 U.S. Dollars (USD). A service called the Certificate of Deposit Account Registry Service (CDARS) provides depositors a way to enjoy FDIC insurance coverage on deposits of up to $50 million USD. Deposit insurance is important for anyone who keeps his money in a bank. It provides that a depositor’s money will not be lost, even in the event that the bank becomes financially unviable. This allows people to deposit money with the confidence that they will be able to get it back, come what may. However, deposit insurance is limited. For example, if a person has $150,000 USD deposited at a bank, and the cap for FDIC insured funds is $100,000 USD, then $50,000 USD of that person’s money would potentially be at risk, if his bank were to fail. CDARS provide
CDARS® is the Certificate of Deposit Account Registry Service®. And it’s the easiest, most convenient way to enjoy full FDIC insurance on deposit amounts larger than $100,000. How CDARS works. View video. Why is that? One Bank Everything is handled through Salisbury Bank. Your large deposit is broken into smaller amounts and placed with other banks that are members of a special network. Then, those member banks issue CDs in amounts under $100,000, so that your entire investment is eligible for FDIC insurance. By working with just one bank – Salisbury Bank – you can receive insurance from many. One Rate You earn one rate on your entire investment – so you can forget about multiple rate negotiations and the need to consolidate multiple disbursement checks. One Statement 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
CDARS is the Certificate of Deposit Account Registry Service. It’s the easiest, most convenient way to enjoy full FDIC insurance on deposit amounts larger than $100,000. Why is that? One Bank Everything is handled through one bank. Your large deposit is broken into smaller amounts and placed with other banks that are members of a special network. Then, those member banks issue CDs in amounts under $100,000, so that your entire investment is eligble for FDIC insurance. By working with just one bank, you can receive insurance from many. One Rate With CDARS, you earn one rate on your entire investment One Statement You will receive one staetment listing all of your CDs along with the issuing banks, maturity dates, interest earned, and other details. It’s that simple. How does CDARs Work? 1 You enter into one agreement. You sign one simple Deposit Agreement 2 You select an interest rate and a maturity based on the best match for your Association investment goals 3 Funds are deposited. Usin
