The Certificate of Deposit Account Registry Service (CDARS), was a US for-profit service that broke up large

deposits A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money. Deposit accounts can be savings accounts, Transaction account#Current accounts, current accounts or any of several othe ...

(from individuals, companies, nonprofits, public funds, etc.) and placed them across a network of more than 3000

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

s and

savings association A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The terms "S&L" or "thrift" are mainly used in the United States; simi ...

s around the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

. This allowed depositors to deal with a single bank that participates in CDARS but avoid having funds above the

Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation (FDIC) is one of two agencies that supply deposit insurance to depositors in American depository institutions, the other being the National Credit Union Administration, which regulates and insures cred ...

(FDIC)

deposit insurance Deposit insurance or deposit protection is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of ...

limits in any one bank. In 2021, the service was reconfigured with several other offerings of IntraFi Network (formerly Promontory Interfinancial Network) into IntraFi Network Deposits and IntraFi Funding.

How it works

The service can place multiple millions in deposits per customer and make all of it qualify for FDIC insurance coverage. A customer can achieve a similar result, as far as FDIC insurance is concerned, by going to a traditional deposit broker or opening accounts directly at multiple banks (although depending on the amount this could require a lot more paperwork). With IntraFi deposits, the customer’s local bank sets the

interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...

that will be paid on the entire deposit amount, and the customer gets one consolidated statement from that bank. The FDIC has confirmed that deposits placed through deposit placement service offered by the IntraFi Network are eligible for “pass-through” FDIC insurance. The FDIC has not endorsed any particular method of maximizing FDIC insurance coverage, but states that depositors should “protect all (their) deposits with FDIC insurance.”FDIC Consumer News, Winter 2006/2007

References

Specific references: General references:
Expanding FDIC Insurance Past Usual Limits (Television)
from abclocal.go.com

from washingtonpost.com

from bizjournals.com
Money Protection Only Goes So Far, So Know The Risks
from chicagotribune.com *''

The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...

Online: *
Help For Money Funds
*
Your Cash: How Safe is Safe?
*
Banks Spread Deposits, and Risks: Multibank System Meets FDIC Limit, but Rates are Lower

from forbes.com
Six Ideas for Insuring Your Deposits
from cnbc.com {{refend

External links

CDARS official website
Federal Deposit Insurance Corporation Financial services in the United States Retail financial services Banking in the United States Bank deposits