With CDARS, you can receive up to $50 million in FDIC protection through Citizens Union Bank. There are few guarantees in life – FDIC insurance is one of them. CDARS can be a valuable cash management or longer-term investment tool for you or your business.1
Why CDARS?
It’s one-stop shopping. With help from CDARS, you can access:
- Safety – Your money can receive up to $50 million in FDIC insurance coverage.
- Convenience – You work directly with us. You earn one interest rate and receive one regular statement. Individual investors receive one year-end tax form.
- Community Investment – The full value of your money can support lending opportunities in your local community.2
- CD-Level Rates – Your money earns CD-level returns which may compare favorably with other investment alternatives, including Treasuries, corporate sweep accounts, and money market funds.
How does CDARS work?
We are part of a special network. When you place a large amount with us, we place your funds into CDs issued by other banks in the network – in increments of less than $100,000 – so that both principal and interest are eligible for complete FDIC protection. As a result, you can receive coverage from many banks while working with just one.
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?
CDARS can significantly reduce your administrative burdens, especially during tax and financial reporting seasons; there’s no need to manually consolidate statements or interest disbursements or to calculate blended rates. Additionally with CDARS, you can say “goodbye” to surety bonds, collateralization requirements (like monitoring changing collateral values on a recurring basis), and opening accounts at different banks in different insurable capacities. All of this can save you time and money. As always, your confidential information remains protected.
1 Funds may be submitted for placement only after a depositor enters into the CDARS Deposit Placement Agreement with Citizens Union Bank. The agreement contains important information and conditions regarding the placement of funds by us. 2 This benefit applies to some, but not all types of CDARS transactions. Let us know if this benefit is important to you, so that we can explain the relevant terms and conditions in more detail. CDARS is a registered service mark of Promontory Interfinancial Network, LLC.
Equal Housing
Lender