Personal Banking - Savings
What is CDARS?
CDARS (Certificate of Deposit Account Registry Service) provides access to security and peace of mind beyond the standard FDIC insurance maximum. Now you can make multi-million dollar deposits and be eligible for FDIC insurance.
Everything is handled through Lake City Bank. Your large deposit is broken into smaller amounts and placed with other banks that are members of this special network. Then, those member banks issue CDs in amounts under $250,000 so that your entire investment is eligible for FDIC insurance. By working with just one bank - Lake City Bank - you can receive insurance from many.
You earn one rate on your entire investment - so you can forget about multiple rate negotiations and the need to consolidate multiple disbursement checks.
You receive one regular account statement listing all of your CDs, along with their issuing banks, maturity dates, interest earned and other details. With CDARS, there’s no need to manually consolidate statements, track changing collateral values, or use private surety bonds.
How Does CDARS Work?
When you’re ready to take advantage of CDARS, here’s what happens:
- You enter into one agreement - You sign one simple Deposit Placement Agreement with us.
- You select an interest rate and a maturity - Based on our current CD options, you decide on a rate and a maturity1 that best matches your investment goals.
- Funds are deposited - Using CDARS, we submit your funds for placement at member banks.
- CDs are issued - Member banks issue CDs in denominations under $250,000 so your entire investment is eligible for full FDIC insurance coverage.
- Confirmation is received - You receive written confirmation of your deposits and a listing of all your CDs.
For information on current product offerings and interest rates, stop by one of our branch locations or call our One Call Center (toll free) at 888-522-2265, option 2.
1 Current maturity options are 13 weeks, 26 weeks, 52 weeks, 104 weeks (2 year), 156 weeks (3 year).