CDARS
CDARS is the best way to keep all of your money FDIC insured, regardless of the amount. Certificate of Deposit Account Registry Service, pronounced cedars, is a great solution to keep all of your money safe at one institution. Remain FDIC insured through all your accounts:
- Individuals
- Businesses
- IRAs
- Trust Accounts
- Non-profit Organizations
With CDARS, TransPecos Banks can provide up to $50 million in FDIC insurance. Spreading out the money in several financial institutions is a thing of the past and can now be done with one institution and one statement.
Why CDARS
Almost anyone who wants to combine the convenience of working with one financial institution with the security of FDIC insurance can benefit from CDARS.
Full Insurance – Using the CDARS service, you can access up to $50 million in FDIC protection on CD investments.
One Bank – You work with a local CDARS network member, one you know and trust to secure large deposits (from $10,000 to $50,000,000).
One Rate – You can earn one interest rate on CD investments placed through CDARS. With CDARS, there is no need to negotiate multiple rates for 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 Hidden Fees – There are no hidden fees of any kind. You will not be charged annual fees, subscription 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. This eliminates the time-consuming task of tracking collateral values.
A Wide Variety of Maturities – You can select from various maturities – ranging from 4 weeks to 5 years (260 weeks) and choose the terms that best suit your investment needs.
Community Involvement – Your funds can support lending initiatives, including special development projects that strengthen the local community.
How CDARS works
TransPecos Banks can offer CDARS because we are a member of a special network. When you place a large deposit with TransPecos Banks, we use CDARS to place your funds into certificates of deposit issued by banks in the network. This occurs in increments of less than the standard FDIC insurance maximum to ensure that both principal and interest are eligible for full FDIC insurance. Other network members do the same thing with their customers’ deposits. With the help of a sophisticated matching system, network members exchange funds. This exchange occurs on a dollar-for-dollar basis, so that the equivalent of your original deposit comes back to your institutions and effectively stays local (meaning the full amount can support lending initiatives that build a stronger community). Alternatively, with your consent, network members can receive fee income instead of matching deposits. In either case, the full amount of your original deposit becomes eligible for complete FDIC protection and you receive just one regular statement detailing all your holdings.
Getting Started with CDARS
Now there is a CD program that offers full FDIC insurance on deposits up to $50 million and its easy to get started.
Call or email us on current CDARS rates and terms.
