CDARS and ICS
Looking for a way to keep large deposits safe?
With CDARS/ICS, you can receive up to $50 million in FDIC protection through First Service Bank with CDARS and $150 million with ICS. There are few guarantees in life – FDIC insurance is one of them. CDARS can be a valuable cash management or longer-term investment tool for you or your business. ICS can be valuable for shorter-term liquid deposits.
Why CDARS (Certificate of Deposit Account Registry Service)?
It’s one-stop shopping. With help from CDARS, you can access:
- Safety – Your money can receive up to $50 million in FDIC insurance coverage.
- Convenience – You work directly with us. You earn one interest rate and receive one regular statement. Individual investors receive one year-end tax form.
- Community Investment – The full value of your money can support lending opportunities in your local community.
- CD-Level Rates – Your money earns CD-level returns which may compare favorably with other investment alternatives, including treasuries, corporate sweep accounts, and money market funds.
Why ICS (Insured Cash Sweep)?
With ICS you can:
- Enjoy Peace of Mind – ICS funds are eligible for multi-million-dollar FDIC insurance that’s backed by the full faith and credit of the United States Government.
- Earn Interest – Put excess cash balances to work for you.
- Save Time – By providing access to FDIC insurance through a single bank relationship, ICS can help your public unit comply with investment policy mandates.
- Access Funds – Enjoy daily liquidity in your transaction account at our bank; replenish the transaction account by withdrawing ICS funds up to six times per month.
- Support Your Community – Feel good knowing that the full amount of your funds placed through ICS can stay local to support lending opportunities that build a stronger community.
How does CDARS/ICS work?
IntraFi Network offers the Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) to banks, which allow depositors to get access to multi-million-dollar FDIC insurance. The thousands of Participating Institutions that offer CDARS or ICS comprise the IntraFi Network. With CDARS and ICS, IntraFi Network members can offer their customers convenient ways to earn interest and access multi-million-dollar FDIC insurance through a single bank relationship and then keep or sell the underlying funding based on their balance sheet/liquidity management needs.
The CDARS and ICS services are designed for ease of use. When using CDARS or ICS, deposits are divided into amounts under the standard FDIC insurance maximum and are allocated among other Network members. Deposits are placed in demand deposit accounts when using the ICS demand option, money market deposit accounts when using the ICS savings option, or CDs when using CDARS. Thus, a customer can access FDIC insurance from many institutions while working directly with just one and receiving just one regular, consolidated statement per service utilized.
What else should I know?
Now you no longer have to spend time managing multiple bank relationships, administering various interest rates, organizing interest disbursements from various sources, or manually consolidating monthly statements. This reduces your administrative burden, especially during tax and financial reporting seasons.
And with CDARS / ICS, you can eliminate the need to monitor changing collateral values – another time saving convenience. Of course, your confidential account information remains protected. The other banks in the network will never see your personal information.
Funds may be submitted for placement only after a depositor enters into the CDARS / ICS Deposit Placement Agreement with First Resource Bank. The agreement contains important information and conditions regarding the placement of funds by us. Please read the agreement carefully before signing it.
This benefit applies to some, but not all types of CDARS/ICS transactions. Let us know if this benefit is important to you, so that we can explain the relevant terms and conditions in more detail.
CDARS/ ICS and One Bank. One Rate. One Statement. are service marks of Promontory Interfinancial Network, LLC.