Certificate of Deposit Account Registry Service (CDARS®)

Newsletter Sign Up

Stay up-to-date on all of our events, offers and promotions just by checking your email. It’s that easy!

Sign Up

How CDARS Benefits Savers

Using CDARS to manage savings can minimize the possibility of falling outside the FDIC coverage limits. When you work with the CDARS program, you can get FDIC insurance through multiple covered institutions in one place.

This can offer reassurance that your accounts are covered in the rare event that a CDARS member bank fails. At the same time, CDARS offers convenience to savers.

Rather than having to open multiple accounts at different banks yourself, you can open just one with a CDARS network bank. You’ll need to complete a Deposit Placement Agreement to allow the bank to distribute funds to other network banks. But that can be easier to do than opening different accounts yourself.

CDARS doesn’t charge any fees to depositors to take advantage of this service. Keep in mind that network banks may charge their own fees to open or maintain CD accounts, including monthly fees or excess withdrawal fees.


What Is CDARS?

The Certificate of Deposit Account Registry Service, or CDARS, is a network of banks that work together to help high-balance savers insure their deposits. This network only includes FDIC-insured banks.

CDARS is not a bank itself; instead, it’s a program that’s designed to help savers maximize their FDIC coverage limits. This is accomplished by allowing savers to establish certificate of deposit accounts through multiple banks through a single outlet.

How does CDARS work?

Tri Counties Bank is part of the CDARS Network. When you open a CDARS account with us, we place your funds into CDs issued by other banks in the Network—in increments of less than the standard FDIC insurance maximum—so that both principal and interest are eligible for FDIC protection. As a result, you can receive coverage from many banks while working directly with Tri Counties Bank.

What are the benefits of CDARS?

Prior to fintech, if a company wanted to secure FDIC coverage for a sum over $250k, they would need to manage relationships with multiple banks, multiple bank statements and multiple reconciliations. In addition, the business owner would need to monitor rates across the U.S. to ensure they are getting a competitive return.

Now, the process of achieving full FDIC protection for business cash has been simplified. Fintech allows for businesses to make a single deposit and have those funds automatically distributed to enough different banks to achieve full FDIC coverage.

Want to Learn More?

The CDARS program can be a valuable cash management tool for your business for both short-term and long-term investments. The one-stop shopping resource allows you to keep your money safe and secure with FDIC coverage, while still having access to CD investment amounts over the specified limit.

The program is also one of the most convenient, allowing you to work with a bank that you trust as you earn a negotiated interest rate and receive a single regular statement from your bank. Another unknown perk is that your money helps support lending opportunities in your local community. With the CDARS program, you no longer have to waste time managing multiple relationships with banks. For more information about the CDARS program or to open a business checking account, contact FVCbank today.

How Does IntraFi Network Deposits Allow FDIC Coverage in Excess of $250,00 on a Single Deposit?

When you have deposits at a single bank with lone custodial capacity, you get up to a maximum of $250,000 in FDIC insurance at that bank. By using IntraFi Network Deposits, you can access multi-million-dollar FDIC protection through a single bank relationship because a larger deposit is divided into amounts under the standard FDIC insurance maximum of $250,000 and placed in deposit accounts at other network banks, accessible through your primary bank.

Minimum Deposits

  • The minimum opening deposit is $100,000.
  • At maturity, customers must have a minimum of $250,000 on deposit with Tri Counties Bank and a minimum aggregate deposit in CDARS of $100,000 to be eligible for reinvestment.

Understanding IntraFi® Network Deposits

IntraFi® Network Deposits is a for-profit service run by the Promontory Interfinancial Network (which was founded by a group of former financial regulators in 2003). IntraFi® Network Deposits comprises a network of more than 3,000 American banks and savings institutions. It is used by individuals, public funds, businesses, nonprofits, credit unions, and financial advisors.

IntraFi® Network Deposits eliminates the need for consumers to go from bank to bank to deposit money and enables them to invest their money in CDs that range in maturity from one month to five years. It also provides consumers with access to CD-level rates, which are often better than the rates for money market mutual funds and Treasury notes.

Users negotiate one interest rate per maturity when they make CD investments through IntraFi® Network Deposits. This eliminates the need to tally disbursements manually for each CD or negotiate multiple rates per maturity.

Every participating local bank in the registry sets its own interest rate, and it is paid on the entire deposit amount. The local bank also acts as a custodian for IntraFi Deposits. The sub-custodian for IntraFi® Network Deposits is the Bank of New York Mellon.

Using IntraFi® Network Deposits requires first finding a local participating bank and then depositing money with a separate Deposit Placement Agreement that is specific to IntraFi Deposits. Then, the local participating bank spreads the money across several member banks, ensuring that the amount of money in each bank never exceeds the FDIC limit of $250,000 per depositor per bank.

$5 billion in SRI Nearly $5 billion in socially responsible deposits were placed through IntraFi Network Deposits in 2020.

Earn more, risk less® with Marketplace Banking™ by ADM

Before you invest in a CDARS account, give a member of the ADM team a call. As you will learn, our team is our secret sauce, and they are standing by to answer your questions and streamline the onboarding of your company.

To stay abreast of interest rate changes, banking industry insights and other valuable financial information, be sure to check out our Insights page and follow us on LinkedIn, Twitter and Facebook.