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Banking Tip of The Month: CDARS (Certificate of Deposit Account Registry Service®)

Posted in: Business Banking, The DFB Difference

Banking Tip of The Month: CDARS (Certificate of Deposit Account Registry Service®)

Our banking tip of the month focuses on CDARS or Certificate of Deposit Account Registry Service®. CDARS allows you to enjoy the safety and simplicity that comes with access to multi-million-dollar FDIC insurance through a single bank relationship with us. 

Do you want to maximize your FDIC insurance coverage and simplify your banking experience? Learn more about CDARS and explore the benefits and tips for using it effectively.

Understanding CDARS

When we place your funds through CDARS, that deposit is divided into amounts under the standard FDIC insurance maximum of $250,000.  The funds are then placed in a CD at multiple banks and as a result, you can access coverage from many institutions while working directly with just us.

Benefits of CDARS

With CDARS, there are no hidden fees, and rates are negotiated at the time of deposit. Other benefits include ongoing collateralization, a range of maturities, and terms that fit your investment short and long-term goals and needs.

Benefits of CDARS Include:

  • One Banking Relationship: save time working directly with one bank to manage your CDARS CD investments.
  • One Rate: negotiate one interest rate per maturity on all of your CDARS  investments.
  • One Statement: receive one consolidated statement detailing all of your CD investments.
  • No Hidden Fees: one rate only, with no charges for annual fees, subscription fees, or transaction fees.
  • Variety of Maturities: you can choose terms that suit your investment needs and goals because CDARS offers maturities ranging from 4 weeks to 260 weeks.
  • Support Your Local Community: when you place all of your funds with us, you can stay local to support lending opportunities that build a stronger community.


How can I be insured above the $250,000 FDIC insurance maximum limitations? 

Your CDARS investment is divided into smaller amounts and placed with other CDARS network member institutions. Dispersing your deposit into smaller portions with CDARS network members makes each deposit eligible for FDIC insurance at each member bank.

Do I get to choose which banks my deposit is distributed to?

No. The network makes the decision based on the information you provide to your financial institution.

Will I know where my money is placed?

Yes. You will receive a list of where your deposits were placed and the amount of each deposit. In addition, consolidated monthly statements will show you how your deposits are performing.

How do I know all my money is covered with CDARS?

Utilizing the CDARS network involves a formal agreement regarding the placement of funds. The contract protects all parties, including you, your financial institution, the company that owns CDARS, and all financial institutions that are part of the CDARS network.

Dream First Bank

Dream First Bank is a trusted financial institution known for supporting entrepreneurs and loan innovation. Our out-of-the-box thinking sets us apart and what makes us live up to our namesake—Dream First!
Opening a CDARS account with Dreamfirst is a seamless process starting with our knowledgeable staff ready to guide you through each step. Contact us today for more information about opening a CDARS account!

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