Worried about the safety of your money? CDARs can give you peace of mind.
Even though headlines report huge financial losses, large businesses in trouble and turmoil in the securities and other markets, today you can enjoy the total security of multi-millions of dollars in FDIC insurance coverage at Advantage Bank. Through a service called CDARS (pronounced “cedars”), Advantage Bank can offer you hundreds of times the standard $250,000 level of coverage found at most banks.
“There is nothing safer than FDIC insurance,” said Randy Smith, President and CEO of Advantage Bank. “Why? Since the FDIC was created in 1933, no one has lost a single penny in an FDIC-insured account. Because of FDIC insurance, four generations of Americans have been able to sleep soundly at night knowing that their money is fully protected,” Smith said. “Now with CDARS, we can protect depositors for multi-millions of dollars, and that means that you can sleep soundly without worrying about your money, too,” he added.
What is CDARS?
CDARS is a deposit placement service. Deposits placed through CDARS meet the pass-through insurance coverage guidelines established by the FDIC. To offer CDARS, a bank must belong to a special network called the Promontory Network. When a customer places a large deposit with a Network member, the bank arranges for the placement of funds into CDs issued by other Network banks – in increments of less than $250,000 to ensure that both principal and interest are eligible for full FDIC protection.
From the customers’ point of view, CDARS is one-stop shopping. Regardless of the number of CDs they receive, CDARS customers work with only one bank, sign only one agreement, and receive one account statement.
Currently, more than 1700 institutions, including Advantage Bank, are members of the Promontory Network. CDARS, which was first offered in January, 2003, is endorsed by the American Bankers Association. “If you have ever heard the saying ‘As safe as money in the bank,’ you know how valuable FDIC insurance coverage is. At Advantage Bank, we’re delighted we can offer you many times the coverage that most other banks can,” Smith said.
NOTICE OF EXPIRATION OF THE TEMPORARY FULL FDIC INSURANCE COVERAGE FOR NON-INTEREST-BEARING TRANSACTION ACCOUNTS
By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor’s accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category. For more information about temporary FDIC insurance coverage of non-interest-bearing transaction accounts, visit http://www.fdic.gov/deposits/unlimited/expiration.html.