Personal Finance

Protect All of Your Money with NexTier Bank's Certificate of Deposit Account Registry Service (CDARS®) Program

 Looking for a way to keep large deposits safe and make every cent eligible for FDIC insurance?

Ask us about CDARS®.

With CDARS, you can access FDIC protection on multi-million dollar CD investments through NexTier Bank. 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.1  

Why CDARS?  It’s one-stop shopping.  With help from CDARS, you can access: 

• Safety – Your money can access multi-million dollar FDIC insurance coverage.   

• Convenience – You work directly with us.  You earn one interest rate and receive one regular statement, and one year-end tax form. 

• Community Investment – The full value of your money can support lending opportunities in your local community.2 

• 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.

How does CDARS work?

We are a member of a special network.  When you place a large amount with us, we place your funds into CDs issued by other banks in the same network – in increments of less than $100,000 – so that both principal and interest are eligible for complete FDIC protection.  As a result, you can receive coverage from many banks while working with just one.

These exchanges, which occur on a dollar-for-dollar basis, can bring the full amount of your original deposit back to our bank.  As a result, we can make the full amount of your deposit available for community lending purposes. 2

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, you can eliminate the need to monitor changing collateral values – another time saving convenience. 

Of course, your confidential account information remains protected. 

How CDARS® Can Work for You

Full Insurance.  Using the CDARS service, you can access up to $50 million in FDIC protection on CD investments.1

One Bank.  You work with us – the bank you know and trust – to secure large deposits (from $10,000 to $50,000,000). 

One Rate.  You earn one interest rate on your CD investments through CDARS.  With CDARS, there is no need to negotiate multiple rates or manually tally disbursements for each CD. 

One Statement.  You receive one regular statement detailing your CD investments.  You no longer need to consolidate statements at the end of each month, quarter, or year.

No Fees.  There are no hidden fees of any kind.  We do not charge annual fees, subscriptions fees, or transaction fees for using the CDARS service; the rate you see is the rate you get.

No Collateralization.  Because CDARS deposits are eligible for full FDIC protection, you may not need to collateralize your deposits, thus eliminating the time-consuming task of tracking collateral values. 

A Wide Variety of Maturities.  You can select from various maturities – ranging from 4 weeks to 5 years (260 weeks) – and choose the terms that best suit your investment needs.  You also can ladder your CDs or combine maturities to effectively create a customized term.

Community Investment.  Your funds can support lending initiatives, including special development projects that strengthen the local community.2

Sign up today and enjoy the peace of mind associated with up to $50 million in FDIC insurance coverage, along with the time-saving conveniences and other advantages of the CDARS service.

¹ Funds may be submitted for placement only after a depositor enters into the CDARS Deposit Placement Agreement. The agreement contains important information and conditions regarding the placement of funds by our bank.

2 This benefit applies to some, but not all types of CDARS 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 and Certificate of Deposit Account Registry Service are registered service marks of Promontory Interfinancial Network, LLC.