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Saturday, July 19, 2008

CDARS or Certificate of Deposit Account Registry Service

Today Bob Brinker recommended CDARS for people looking for FDIC insurance on CDs between $100,000 and $50,000,000 (fifty million dollars.)

CDARS stands for "Certificate of Deposit Account Registry Service."

From the Website:

CDARS for Individuals

With CDARS, banks can offer you up to $50 million in Federal deposit insurance coverage. So you can manage all of your CDs through a single bank, without hassle.

With CDARS, you get One Bank, One Rate, One Statement
  • One Bank: Investors can access multi-million dollar FDIC insurance coverage by working with just one bank — the bank they know and trust.
  • One Rate: Investors negotiate one rate for each CD maturity and enjoy the option of reinvesting them through a simple process.
  • One Statement: Investors receive one easy-to-read statement summarizing all of their CD holdings.
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. As always, your confidential information remains protected.

Institutions Offering CDARS by State


  1. I was speaking to a banker at a community bank today a community bank and found out how tough the current liquidity crisis is on their operations. Their loan portfolio is incredibly strong, written to rigorous underwriting standards, but their inter-bank funding has virtually dried up.

    My suggestion to them was to shake the trees in the neighborhood for folks who have substantial cash reserves that are sitting in T-Bills and encourage them to move their investments into substantially higher yielding FDIC insured CD's with a CDARS participating lending institution.

    Wouldn't it be interesting if we could get the extremely well connected Promontory Interfinancial Network, LLC Founders to encourage the Feds to encourage investors to place deposit money with community banks, substantially increase the investors' yields without incurring any additional risks vs. treasuries, and break the liquidity crisis.

    The CDARS vehicle could be a intermediate vehicle that the Fed could use instead of becoming the "lender of last resort" (acting as the counterparty on each inter-bank transaction). In my opinion, it is the community banks that are going to help rectify our economy, not the Wall Street firms or money center banks.

    Presidential Implications

    It could be an arrow in the quiver of whichever Presidential Candidate they support.

    Patriotic Duty

    I think it is our patriotic duty to try and save our economy. I am trying to do my part.

  2. Great idea! It would have treasury holders taking profits in the flight to quality.

    LIBOR is soaring which will hurt many with ARMS plus it makes it very, very difficult for many others who use ARMs responsibly to get good rates. Your idea would help there also.

    (See US Treasury Rates.)


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