One Bank. Everything is handled through KeySource. Your large deposit is broken into smaller amounts and placed with other banks that are members of the CDARS network. Then, those banks issue CDs in amounts under the standard FDIC insurance maximum, so that your entire investment is eligible for FDIC protection. By working with just one bank – KeySource – you can receive insurance through many.
One Rate. You earn one rate on your entire investment – so you can forget about multiple rate negotiations and the need to consolidate multiple disbursement checks.
One Statement. You receive one regular account statement listing all of your CDs, along with their issuing banks, maturity dates, interest earned, and other details. With CDARS, there’s no need to manually consolidate statements, track changing collateral values, or use private surety bonds.
KeySource is a member of a special network. When you place a large deposit with KeySource, we use the CDARS service to place your funds into CDs issued by other members of the network. This occurs in increments of less than the standard FDIC insurance maximum amount to ensure that both principal and interest are eligible for full FDIC protection on up to $50 million. Other network members do the same things with their customers’ funds. With help from a sophisticated matching system, banks exchange funds with other members of the network. These exchanges, which occur on a dollar-for-dollar basis, bring the full amount of your original deposit back to KeySource. As a result, we can make the full amount of the deposit available for community lending purposes (the money stays local!) and you can access FDIC insurance coverage from many banks while working with just KeySource.
When you're ready to take advantage of CDARS, here's what happens:
You Enter into One Agreement. You sign one simple Deposit Placement Agreement with us.
You Select an Interest Rate and a Maturity. Based on our current CD options, you agree to a rate and a maturity that best matches your investment goals.
Funds are Deposited. Using CDARS, we submit your funds for placement at member banks.
CDs are Issued. Member banks issue CDs in denominations under the FDIC maximum, so your entire investment is eligible for full FDIC coverage.
Confirmation is Received. You receive written confirmation of your deposits and a listing of all of your CDs.
With CDARS, you can say "goodbye" to running around town to multiple banks. No more opening up multiple title accounts in different rights and capacities of family members to maximize FDIC insurance at one bank. 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.
Opening an account is easy. Come down and visit us, or just give us a call. We'll gladly assist you in opening up your fully FDIC insured CD today. Call (919)383-4200 today and ask to speak to a Customer Service Representative about CDARS.
Funds may be submitted for placement only after a depositor enters into an agreement with a network member bank. CDARS is a registered service mark of Promontory Interfinancial Network, LLC.
