CDARS® is perhaps the safest and smartest investment vehicle for investors looking to protect their large-dollar investments while earning favorable CD-level returns. You gain multi-million dollar FDIC insurance through a single, trusted relationship with First National Bank.
Investing through CDARS can be a strong alternative to treasuries. And a finite maturity date offers an advantage over an auction-rate or some adjustable-rate securities.
- Access to multi-million dollar FDIC insurance
- Ease of working through one trusted relationship
- Simplicity of one rate per maturity
- Wide range of terms available
- Consolidated statements
- Earnings compounded daily
- How It Works
First National Bank is a member of the Certificate of Deposit Account Registry Service® (CDARS), a special network that can offer you the increased FDIC insurance. When you place a large amount of money with us, we place your funds into CDs issued by other banks in the same network. We do this in increments of less than $250,000 so both the principal and interest are completely covered by FDIC protection.
Traditionally, an investor would have to split deposits among CDs at several financial institutions to gain FDIC insurance on all of their deposit. But with CDARS at First National Bank, we do all the work for you. You no longer have to manage multiple bank relationships, organize interest disbursements from various sources, or manually consolidate monthly statements. Through a single relationship, you will reduce your administrative burden significantly, especially during tax and financial reporting seasons.
- Why CDARS
Peace of Mind. Using the CDARS service, you can access multi-million-dollar FDIC insurance on CD investments.*
One Relationship. You work directly with First National Bank.
One Rate. You negotiate one interest rate per maturity on CD investments placed through CDARS. With CDARS, there is no need to negotiate multiple rates or manually tally disbursements for each CD.
One Statement. You receive one regular statement detailing your CD investments. You no longer need to manually consolidate statements at the end of each month, quarter, or year.
No Hidden Fees. You will not be charged annual fees, subscription fees, or transaction fees for using CDARS. The rate you see is the rate you get.
No Ongoing Collateralization. Because CDARS deposits are eligible for FDIC protection, you may not need to continually collateralize your deposits. This can eliminate the time-consuming task of tracking changing collateral values on a recurring basis.**
A Wide Variety of Maturities. You can select from various maturities—ranging from 4 weeks to 5 years—and choose the terms that best suit your investment needs.
Community Investment. Your funds can support lending initiatives, including special development projects that strengthen your local community.***
* Limits apply. Funds may be submitted for placement only after an investor enters into a CDARS Deposit Placement Agreement with our bank. This agreement contains important information and conditions regarding the placement of funds.
** If an investor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the investor to determine whether the placement of the investor's funds through CDARS or a particular CDARS transaction satisfies those restrictions.
*** Because deposited funds are exchanged on a dollar-for-dollar basis with other banks in the CDARS Network, our bank can use the full amount of a deposit placed through CDARS for local lending, satisfying some investors' local investment goals/mandates. Alternatively, with an investor's consent, our bank 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 is a registered service mark of Promontory Interfinancial Network, LLC.