CDARS ®
CDARS® is the Certificate of Deposit Account Registry Service. And it's the most convenient way to enjoy full FDIC insurance on deposits of up to $50 million.
CDARS® is the perfect solution for many depositors - from non-profits and public funds to businesses, advisors (including trustees, CPAs, financial planners and lawyers) and individuals, as well as socially-motivated investors.
With CDARS®, you sign one agreement, earn one interest rate, and receive one regular statement. This saves you from entering into multiple rate negotiations, tracking maturing CDs from numerous banks, organizing various interest disbursement checks, and monitoring changing collateral values.
When you place a large deposit with Northwest Bank, we use CDARS® to place your funds into certificates of deposit issued by banks in the network. This occurs in increments of less than $250,000 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 from 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 institution.
The full amount of your original deposit becomes eligible for complete FDIC protection. And you receive one regular statement detailing all your holdings.
For more information on CDARS®, contact us at (503) 906-3939.
