CDARS 101
CDARS may sound like trees you might find in the FREST – but it actually stands for Certificate of Deposit Accounts Registry Service, a method of insurance for very large deposits that is backed by the Federal Deposit Insurance Corporation (FDIC).
CDARS exists primarily because of the limits on FDIC-insured accounts. FDIC limits for CDs are, per the FDIC website, “$250,000 per depositor, per insured bank, for each account ownership category.” If you have a larger quantity of funds that you wish to invest in CDs, you can still do so and maintain FDIC insurance – but you will have to go to each bank, open individual accounts, and then manage all of them. CDARS institutions act as intermediaries and handle this step for you.
To take advantage of this, you choose a CDARS institution from the network list available on the CDARS website to be your “relationship institution” – for most Americans, it is likely that one is near your location. The CDARS website contains a ...
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