CDARS (Certificate of Deposit Account
Registry Service)
Safety: CDARS is a service comprised
of a network of over 2,000 banks nationwide that
allows our financial institution to provide our
customers with access to full FDIC insurance on
CD investments up to $50 million. (Some restrictions
apply, please contact one of our Business Development Officers
for details - locate branch office nearest to you here).
Convenience: One relationship. Everything is handled
through our financial institution. Your large deposit
is broken into smaller amounts and placed with
other institutions that are members of the CDARS
network. Then, those members issue CDs in amounts
under $100,000, so that your entire investment
(principal plus interest) is eligible for FDIC
insurance. By working with just one institution,
First National Bank of Central Florida , you can
receive insurance from many.
One Rate: You earn one rate on your entire investment
so you can forget about multiple rate negotiations
and the need to consolidate multiple disbursement
checks.
One Statement: You receive one regular account
statement listing all of your CDs, along with their
issuing banks, maturity dates, interest earned,
and other details. With CDARS, there's no need
to manually consolidate statements.
No Fee: There is no fee to our customers for placing
deposits through the CDARS network.
How does CDARS work? When you are ready to take
advantage of CDARS, here's what happens:
1) You complete an Order Form, CDARS Deposit Placement
Agreement, and Custodial Agreement
2) You select an interest rate and a maturity.
Based on our current CD options (4 weeks, 13 weeks,
26 weeks, 52 weeks, 2 years, 3 years, and 5 years),
you decide on a rate and a maturity that best matches
your investment goals. Orders for placement through
the CDARS network are weekly and must be completed
by Tuesday at 4:00 p.m. for funds placement on
Thursday; thus, collected funds must be in our
institution by Tuesday at 4:00 p.m.
3) Funds are deposited – Using CDARS, we submit
your funds for placement at member banks.
4) CDs are issued – Member Banks issue CDs in
denominations under $100,000.
5) Confirmation is received –You receive written
confirmation (New Account Statement) of your deposits
and a listing of all of your CDs.
What else do you need to know?
• You deal directly through us for
all of your account needs.
• You receive a single year-end 1099.
• Your confidential information remains
protected.
• Early withdrawal penalties will be
imposed by the institution that issued the CDs.
For additional information, please contact your
local branch office.
