Find out how easy it is to work directly with a single local bank to qualify large deposits for FDIC insurance. While your CDs may come from financial institutions across the country, your funds can still be used locally. This is because CDARS network members exchange dollar-for-dollar deposits and ensure that the same amount of funds placed through the network is returned to your financial institution. This means that your initial deposit amount can remain at your financial institution and be used by you on the spot. CDARS has been designed to meet FDIC`s Pass Through deposit guarantee requirements. If you have deposits with a single bank in a single ownership capacity, you have access to FDIC insurance of up to US$250,000 from that bank. But using ICS®, insured Cash Sweep® and CDARS® you can access multi-million dollar FDIC protection by working directly with a single bank. There are several reasons why companies choose to invest funds in the CDARS program. One of the biggest advantages is the ability to combine the comfort of working with a single bank with the security of access to FDIC insurance for more than 250,000 $US. With the program, investors have access to millions of dollars of FDIC insurance for low-risk DC investments.

Each CD investment contains an interest rate per maturity that can be traded at the time of deposit. There are also no hidden fees, including annual fees, transaction fees, or subscription fees. The price you have agreed on is the price you will receive. In accordance with the ICS DPA, funds are transferred to current accounts with other institutions in the ICS network through ICS. CDARS® – the Certificate of Deposit Account Registry Service® – is the most convenient way to access FDIC insurance for multi-million dollar CD deposits and earn CD rates that are often cheap compared to treasuries and money market funds. CDARS is one of the safest options for investors who want to protect their investments while continuing to get interest rates that are only possible with CDs. Investing in the program can be a smart alternative to U.S. Treasury bonds and, like Treasuries, CDARS is backed by the U.S.

government. You may be concerned about the FDIC`s situation regarding these programs. Fortunately, the FDIC doesn`t just recognize the deposit service, it has even encouraged it at times. The CDARS program has undergoen extensive testing and the service is recognized by both FDIC regulations and state laws. You sign an ICS Deposit Investment Agreement (ICS DPA) and a Deposit Agreement. The first steps with the CDARS program are simple. First, visit your local FVCbank subsidiary, where you will be asked to sign a CDARS deposit agreement as well as a deposit agreement. You can then invest funds with a member of the CDARS network. Your money is invested with the program and your CDs are spent by members of the program network. Shortly thereafter, you will receive a confirmation of your CDs from your financial institution.

FVCbank will also provide you with regular consolidated interest payments and bank statements. CDARS, in short for Certificate of Deposit Account Registry Service, is an easy and convenient way to fully exploit the benefits of FDIC insurance for deposits over US$250,000. .