Have More Than $250,000 to Deposit? Here's How to Stay Fully FDIC Insured
For many people, the standard FDIC insurance limit of $250,000 per depositor, per insured bank is more than enough. But what if you've recently sold a business, inherited money, received an insurance settlement, or simply accumulated larger savings?
Fortunately, there is a simple solution that allows you to keep large deposits fully protected while continuing to work with the bank you know and trust.
What Is CDARS?
CDARS, which stands for Certificate of Deposit Account Registry Service®, is a service that allows customers to access millions of dollars in FDIC insurance while working directly with Ohnward Bank & Trust.
Instead of opening certificates of deposit (CDs) at multiple banks yourself, Ohnward Bank & Trust can divide your deposit into amounts below the FDIC insurance limit and place those funds into CDs at other FDIC-insured financial institutions. Even though your funds are distributed among multiple banks for insurance purposes, you continue working with your trusted local bank.
Why Do People Use CDARS?
CDARS offers several advantages for customers with larger deposits.
• Access More FDIC Insurance - By spreading deposits among multiple FDIC-insured institutions, eligible funds can receive FDIC insurance well beyond the standard $250,000 limit.
• Keep Banking Simple - Without CDARS, you would need to open and manage accounts at multiple banks to increase your FDIC coverage. With CDARS, you work through one trusted bank instead of keeping track of multiple relationships, statements, and maturity dates.
• Earn Interest on Your Savings - Your funds are invested in certificates of deposit, allowing you to earn interest while maintaining FDIC protection.
• Save Time - You'll work with one banker, making it much easier to manage your deposits.
Who Might Benefit?
CDARS may be a good fit for:
• Individuals with substantial savings
• Business owners with large cash balances
• Farmers after a successful harvest
• Nonprofit organizations
• Municipalities and public entities
• Anyone who wants additional FDIC protection without the hassle of multiple banking relationships
Is My Money Safe?
Funds placed through CDARS are deposited into CDs issued by FDIC-insured financial institutions. As long as deposits remain within applicable FDIC insurance limits at each participating institution and other program conditions are met, your funds receive the same federal deposit insurance coverage you would receive by opening the CDs yourself.
Is CDARS Right for You?
Every financial situation is different. If your deposits may exceed standard FDIC insurance limits, it's worth having a conversation with a banker. A quick review of your accounts can help us determine whether CDARS is the right fit for your financial goals.
Protecting your savings doesn't have to mean making banking more complicated. Using CDARS through Ohnward Bank & Trust allows you to enjoy expanded FDIC insurance coverage while maintaining the convenience and personal service of working with your local community bank.