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Now your large CD deposits could be eligible
for full FDIC insurance through our new Certificate
of Deposit Account Registry ServiceSM
(CDARSSM)*.
A
safe, convenient solution for large-deposit investors
Until now, there were only
three ways an investor could enjoy full FDIC insurance
on deposits larger than $100,000; open and maintain
accounts with multiple banks, invest with one
bank by transferring ownership and registering
accounts in the names of family members or corporate
affiliates, or work through a broker-dealer.
All
that has changed
Through the Certificate
of Deposit Account Registry Service (CDARS), large
deposits can now be placed by a participating
bank into smaller-denomination CDs at multiple
institutions. This service can offer you significant
benefits:
| • |
Safety
of FDIC insurance for large deposits
Because funds are placed in FDIC-insured CDs
that are issued by Network members, your total
deposits over $100,000 can be eligible for
full FDIC coverage, up to $1 million or more. |
| • |
CD
Interest
Rates may compare favorably with those of
other high-quality, fixed-income investments. |
| • |
Management
convenience
You can manage all of your CD investments
through a single relationship. |
| • |
Security
of working with a trusted, local source
Your transaction is managed by the people
you know and trust at your local bank. |
Transactions
through CDARS are processed quickly and easily
| 1 |
Submit
an order
You submit a CDARS order with help from staff
members at your local bank. |
| 2 |
Agree
to a maturity period
You select a maturity period offered by your
bank. |
| 3 |
Deposit
through your bank
Your funds are submitted by the bank for placement
though CDARS.* |
| 4 |
CDs
issued through the CDARS system
Your money is placed into CDs with denominations
under $100,000, which are issued by other
banks and thrifts; your entire deposit; up
to $1 million or more, can be eligible for
FDIC insurance coverage. |
| 5 |
Confirmation
of deposit
When your CDs are issued,
you recieve notification confirming your deposit. |
Interest is paid directly to you or to an account
you designate. Each month, your bank will send
you a statement listing all your CDs, the banks
issuing the CDs, maturity dates, interest earned
and other details.
At the end of each year, your bank will send
you a consolidated 1099 that reports your taxable
interest income.
Through CDARS, specific
advantages are offered to institutional and business
customers
| Public-sector
and nonprofit organizations** |
| • |
Funds
are placed through the institution of your
choice, effectively satisfying some organizations'
mandate to invest locally.*** |
| • |
Because
all funds are eligible for FDIC insurance,
deposits may not need to be collateralized
to conform to your investment policies. |
| Corporations
and small businesses |
| • |
Cash
managers can have an alternative to commercial
paper, money market funds and repurchase agreements.
|
| • |
Financial
officers or small-business owners can enjoy
access to FDIC-insured deposits through a
local institution. |
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