CDARS Program
Looking for a way to keep large deposits safe? Ask us about CDARS®. It's a great solution for individuals, trustees, socially-motivated investors, CPAs, financial planners and lawyers.
Why CDARS?
It’s one-stop shopping. With help from CDARS®, you can access:
Full Insurance
Using the CDARS® service, you have access to multi-million dollar FDIC protection on CD investments.
One Bank
You work with us - the bank you know and trust - to secure your large deposits.
One Rate
You earn one interest rate on your CD investments through CDARS®. With CDARS®, there is no need to negotiate multiple rates or manually tally
disbursements for each CD.
One Statement
You receive one regular statement detailing your CD investments. You no longer need to consolidate statements at the end of each month, quarter, or year.
No Fees
There are no hidden fees of any kind. We do not charge annual fees, subscriptions fees, or transaction fees for using the CDARS® service; the rate you see is the rate you get.
No Collateralization
Because CDARS® deposits are eligible for full FDIC protection, you may not need to collateralize your deposits, thus eliminating the time-consuming task of tracking collateral values.
How does CDARS work?
We are members of a special network. When you place a large amount with us, we place your funds into certificates of deposit issued by other banks in the network – in increments of less than $100,000 – so that both your principal and interest are eligible for complete FDIC protection. With help from a sophisticated matching system, we exchange deposits with other banks that are members of the network. These exchanges, which occur on a dollar-for-dollar basis, can bring the full amount of your original deposit back to our bank. As a result, we can make the full amount of your deposit available for community lending purposes.
What else should I know?
Now, you no longer need to run around opening multiple accounts at multiple banks, managing various interest rates, organizing interest disbursements from various sources, or manually consolidating monthly statements. This reduces your administrative burden, especially during tax and financial reporting seasons. With CDARS®, you can eliminate the need to monitor changing collateral values – another time saving convenience and of course, your confidential account information remains protected.
See a Lakeside banker for a complete CDARS® package.
1. Funds may be submitted for placement only after a depositor enters into CDARS® Deposit Placement Agreement with us. The agreement contains important information and conditions regarding the placement of funds by us. CDARS® and Certificate of Deposit Account Registry Service are service marks of Promontory Interfinancial Network, LLC.
2. Consult with your account manager or one of our customer service representatives regarding rates.
3. 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 your funds through CDARS® satisfies those restrictions.
4. Because deposited funds are exchanged on a dollar-for dollar basis with other banks in the network, we can use the full amount of a deposit placed through CDARS for local lending, satisfying some depositors’ local investment goals/mandates. Alternatively, with a depositor’s consent, our bank may choose to receive fee income instead of deposits from other banks. Under these circumstances, deposited funds would not be available for local lending.
5. Please consult with your auditor to determine how CDs should be reported.
