CDARS 

CDARS is a secured savings solution for individuals, businesses and nonprofit organizations wishing to deposit up to $50 million with one financial institution with the security of FDIC insurance.

What is CDARS? 

CDARS (pronounced cedars) is the Certificate of Deposit Account Registry Service.®

How does CDARS work? 

OneCalifornia Bank can offer CDARS because we are a member of the CDARS special network.

When you place a large deposit with OneCalifornia Bank it uses CDARS to place your funds into certificates of deposit issued by banks in the network. This occurs in increments of less than $100,000* to ensure that both principal and interest are eligible for full FDIC insurance.

Other network members do the same thing with their customers’ deposits. With the help of a sophisticated matching system, network members exchange funds. This exchange occurs on a dollar for dollar basis, so that the equivalent of your original deposit comes back to your institution and effectively stays local (meaning the full account can support lending initiatives that build a stronger local community). The full amount of your original deposit becomes eligible for complete FDIC protection and you receive just one regular statement detailing all your holdings. 

Why CDARS at OneCal? 

CDARS is an excellent way to participate with OneCal in community development banking. It’s a secured deposit option for nonprofits, public funds, businesses, advisors (including trustees, CPAs, financial planners, and lawyers), socially-motivated investors and individuals with accumulated wealth and/or high incomes. As a OneCal depositor, you automatically help to strengthen community.

How do I open an account? 

To open an account or learn more, contact Sherilyn Escoto at OneCal Bank. Phone 510.550.8413.

More about the benefits of CDARS… 

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 a local CDARS network member — one you know and trust — to secure large deposits (from $10,000 to $50,000,000).

One Rate. You earn one interest rate on CD investments placed 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 Hidden Fees. There are no hidden fees of any kind. You will not be charged annual fees, subscription 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. This eliminates the time-consuming task of tracking collateral values.[2]

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.

Community Involvement. Your funds can support lending initiatives, including special development projects that strengthen the local community.[3]

Visit these links about CDARS 

http://www.promnetwork.com/  

http://www.cdars.com/news.php 

http://www.promnetwork.com/how-cdars-works-vid.html 

[1] Funds may be submitted for placement only after a depositor enters into a CDARS Deposit Placement Agreement with a member institution.

[2] If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor's funds through CDARS or a particular CDARS transaction satisfies those restrictions.

[3] Because deposited funds are exchanged on a dollar-for-dollar basis with other banks in the network, the bank through which a depositor places his/her funds can use the full amount of a deposit placed through CDARS for local lending, satisfying some depositors' local investment goals/mandates. Alternatively, with a depositor's consent, the bank may choose to receive fee income instead of deposits from other banks. Under these circumstances, deposited funds would not be available for local lending.

* In October, 2008, the FDIC temporarily raised the insured limit for an individual account to $250,000. While this is in effect, the increments would be less than $250,000.

The benefits listed above are from Promontory Interfinancial Network, LLC. CDARS is a registered service mark of Promontory Interfinancial Network, LLC.