CDARS®
The PrivateBank is pleased to Introduce CDARS® to its Clients - Now You Can Benefit from Security for Your Large Deposits: Access up to $50 million in FDIC insurance on investments for your individual, institutional or public unit, CD's at The PrivateBank.
Features of the CDARS® Program
One Rate
Negotiate one rate with our bank for each CD maturity and enjoy the option of reinvesting funds through a simple process.
One Statement
Receive one easy-to-read statement from our bank summarizing all your CD holdings.
One Bank
Access multi-million dollar FDIC insurance coverage by working with just us – the bank you know and trust, a Member of the Federal Deposit Insurance Corporation. (Member FDIC)
Avoid the turmoil of today’s markets and secure your large deposits without fear. The PrivateBank now offers a way to access full FDIC insurance for your investments without the hassle of multiple statements, collateral tracking, surety bonds, or multiple title accounts with the CDARS® service now offered to you through The PrivateBank.
The Certificate of Deposit Account Registry Service® (CDARS®) allows you to access multi-million dollar FDIC insurance while earning CD rates. And, at The PrivateBank, you have a one-stop shopping solution. You work with us to obtain full FDIC insurance, earn one interest rate per maturity and receive just one regular statement from us. |
How does CDARS® work?
We are part of a special financial service 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.
With help from a sophisticated matching system, we exchange deposits with other banks that are members of the network. These exchanges, which occur on a dollar-for-dollar basis, bring the full amount of your original deposit back to The PrivateBank...
As a result, we can make the full amount of your deposit available for community lending purposes (your money stays local!) and your organization can access FDIC insurance coverage from many banks while working with just one.
For Individual Investors
With CDARS®, you can say “goodbye” to running around town to open accounts at multiple banks in different insurable capacities. There also is no need to manually consolidate account statements or interest disbursements, which frees up your valuable time. You can enjoy the peace of mind associated with access to full FDIC insurance on your CDs. You’ve worked hard for your money. Now, let it work hard for you.
You can enjoy CD level returns and peace of mind knowing your entire investment is safe. This allows you to devote more time to other activities that support your mission, organization or life.
For Not For Profit Organizations or Public Units
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.
With CDARS®, you can eliminate the need to monitor changing collateral values – another time-saving convenience. And, because your money can be fully FDIC insured, it can help your organization comply with investment policy mandates and avoid footnoting uninsured deposits in its financial statements.
All of this means you can devote more time to fund-raising efforts and/or other organizational activities in support of your group’s mission.
As always, your confidential information remains protected.
What else should I know?
And, if you agree, we may choose to receive fee income instead of deposits from other banks. Under these circumstances, deposited funds would not be available for local lending. CDARS® and Certificate of Deposit Account Registry Service® are registered service marks of Promontory Interfinancial Network, LLC.
Here is more information which appears on the website of the Promontory Interfinancial Network, LLC, the organization which offers the CDARS® program.
CDARS® (or the Certificate of Deposit Account Registry Service®)
Promontory's flagship service, CDARS®, is unique. The value of the service is underscored by its transaction volume; institutions of all sizes place billions of dollars through the network each month. At inception, Promontory was formed by three former banking regulators.
Using CDARS®, clients of member banks (such as The PrivateBank) will have:
- Safety – Deposits are eligible for multi-million dollar FDIC insurance coverage.
- Convenience – With CDARS®, investors manage one bank relationship, earn one rate on their entire investment, and receive one regular account statement. This can save them from entering into multiple rate negotiations and manually consolidating account statements. Additionally, by providing access to multi-million dollar FDIC insurance, CDARS® can eliminate the need for private insurance or collateralization – so clients can say "goodbye" to tracking changing collateral values if they were accustomed to doing so. Investors may also enjoy the benefit of receiving only one 1099 at year end.
- Rate – Customers earn CD-level returns. These rates may compare favorably with other investment alternatives, including Treasuries, sweep accounts, and money market funds.
- Community Investment – Up to the full value of a customer's deposit can support lending opportunities that strengthen the local community.
To discuss ways in which CDARS® can help you, please contact any Managing Director at The PrivateBank, 816-286-1500 or info-kc@theprivateBank.com.
