What is it and how does it work?
Rest easy knowing your funds are eligible for multi-million-dollar FDIC insurance. Enjoy the convenience of working directly with our bank, a bank you know and trust. Also, when your deposit is placed using CDARS®, it can be used to support your community, helping to fund loans for businesses and families.
The CDARS program is available for customers with uninsured deposits at Guaranty. Did you know your account may be eligible for more than $250,000 in FDIC insurance if your account has co-owners or beneficiaries? For more details contact your local banker.
How does CDARS® work?
Institutions, like ours, that offer CDARS® are members of the IntraFi Network. When we place your funds through the CDARS® service, that deposit is divided into amounts under the standard FDIC insurance maximum of $250,000. The funds are then placed into CDs at multiple banks. As a result, you can access coverage from many institutions while working directly with just one.
Peace of mind
With CDARS, you can access millions in FDIC insurance—all through a single bank relationship with us, a bank you know and trust. No one has ever lost a penny of an FDIC-insured deposit.
Earn interest at a rate set by us
Funds placed through CDARS may earn returns that compare favorably to Treasuries and government money market mutual funds and avoid the risks associated with prime money market mutual funds.
Time savings and ease
Work directly with us and say goodbye to managing multiple bank relationships, tracking collateral, or having uninsured deposits to footnote in financial statements.
Stay confidently in control with statements that show balances, interest, and other important details associated with your CD deposit accounts.
Support for the local economy
When you make a large deposit with us, you’ll enjoy peace of mind knowing that your money can be used to fund lending in the community that may, for example help small businesses to support job or inventory growth, nonprofits to further their missions, and individuals to finance higher education.
A smart choice
CDARS is brought to you by IntraFi, the largest provider of FDIC-insured deposit services, combining the institutional strength of Wall Street with the community presence of Main Street. With IntraFi's services, you can enjoy the largest per-depositor FDIC eligibility available through a single financial relationship.
IntraFi CDARS® is one of the safest, smartest vehicles for investors looking to protect their large-dollar deposits while earning CD-level returns. CDs placed through IntraFi CDARS® offer:
- access to multi-million-dollar FDIC insurance;
- the ease of working through one trusted relationship, earning one rate per maturity, and receiving consolidated statements;
- relief from ongoing collateralization—because IntraFi CDARS® deposits are eligible for FDIC protection, you can eliminate ongoing collateral tracking;
- a finite maturity date (in contrast to auction-rate or some adjustable-rate securities); and
- the ability to have the amount of your deposit available to support lending initiatives that strengthen the local community.
The standard FDIC insurance maximum is $250,000 per insured capacity, per bank. To protect a larger deposit, you could run around to multiple institutions to deposit your funds, or you could require a bank to collateralize your deposit and track changing collateral values on an ongoing basis. Alternatively, you can have us place your large-dollar deposit using IntraFi CDARS® . Your deposit is divided into smaller amounts and placed with other institutions that use IntraFi CDARS® , each an FDIC-insured institution. Then, those member institutions issue CDs in amounts under $250,000, so that your deposit is eligible for FDIC insurance at each member bank. By working directly with us, you can access coverage from many institutions while receiving a single regular statement.
Funds placed through IntraFi CDARS® are deposited only into FDIC-insured banks. We act as custodian for your IntraFi CDARS® deposits, and the sub custodian for IntraFi CDARS® deposits is the Bank of New York Mellon (BNY Mellon).
Unique to IntraFi CDARS® , you as a depositor can obtain a confirmation of records maintained by BNY Mellon as sub-custodian to reconcile those records with the statements received from us. At any time, as often as desired, you as a depositor can obtain a certified statement from BNY Mellon that confirms the exact amount of your CDs, including principal balance and accrued interest, for each FDIC-insured institution that issues a CD through IntraFi CDARS® .
You can submit a request for the certified statement, along with BNY Mellon’s processing fee, through us. BNY Mellon will send the certified statement directly to you or to another party designated by you, such as an auditor.
When we exchange deposits with other institutions that use IntraFi CDARS® on a dollar-for-dollar basis, the same amount of funds placed through the network returns to us. As a result, the total amount of your original deposit can remain with our bank and be used for local lending. (CDARS Reciprocal transactions only.)
You work directly with just us—the bank you know and trust. As always, your confidential information remains protected.
Most of the banks that have failed in the United States in recent years did not use IntraFi CDARS® or did not hold any IntraFi CDARS® deposits when they failed. When a IntraFi CDARS® institution has failed, the bank’s CDs issued using IntraFi CDARS® in most cases have been transferred to a healthy institution—the FDIC’s preferred method for handling bank failures. In cases where the FDIC has been unable to find a healthy institution willing to accept such a transfer, it has arranged for the payment of the insured principal and accrued interest to the depositors. This payment has usually occurred within a matter of days.
When deposited funds are exchanged on a dollar-for-dollar basis with other institutions that use IntraFi CDARS® , our bank can use the full amount of a deposit placed through IntraFi CDARS® for local lending, satisfying some depositors’ local investment goals or mandates. Alternatively, with a depositor's consent, our bank may choose to receive fee income instead of deposits from other participating institutions. Under these circumstances, deposited funds would not be available for local lending.
Deposit placement through IntraFi CDARS® or ICS is subject to the terms, conditions, and disclosures in applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through IntraFi CDARS® or ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi and ICS are registered service marks, and the IntraFi hexagon and IntraFi logo are service marks, of IntraFi Network LLC.