Why CDARS?
With CDARS, you can receive up to $50 million in FDIC protection through First Banking Center. There are few guarantees in life - FDIC insurance is one of them. With CDARS you will also benefit from:
- Convenience - You work directly with First Banking Center. You no longer need to open multiple accounts at multiple banks, manage various interest rates, organize interest disbursements from various sources, or manually consolidate monthly statements. Instead, you can earn one interest rate and receive one statement with all of your account information on it. You will also receive only one year-end tax form.
- Community Investment - The full value of your money can support lending opportunities in your local community.
- 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 mutual funds.
- Confidentiality - Your confidential account information remains protected.
How does CDARS work?
First Banking Center is a member of a special network. When you place a large amount with us, we place your funds into certificates of deposit issued by other banks in the network - in increments of less than $100,000 - so that both your principal and interest are eligible for complete FDIC protection. With help from a sophisticated matching system, we exchange deposits with other banks that are members of the network.
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.
- Maturities range from 4 weeks to 156 weeks (3 years)
- $25,000 minimum initial deposit for 4 week term; $10,000 minimum initial deposit for all other terms
- The rate of interest varies depending on the length of the term
- Interest is compounded at maturity for 4 week and 13 week terms; interest is compounded quarterly for all other terms
- Substantial penalty for early withdrawal
Ask us about how CDARS can work for you the next time you visit one of our branches or email fbcinquiry@firstbankingcenter.com for more information.
Funds may be submitted for placement only after a depositor enters into the CDARS Deposit Placement Agreement by First Banking Center. The agreement contains important information and conditions regarding the placement of funds by us. Please read the agreement carefully before signing it. CDARS is a registered service mark of Promontory Interfinancial Network, LLC.
Account pricing/activity limits may vary in certain locations.
Please call your nearest branch for details.
Products could change at any time without notice. See our Business Fee Schedule for information on service fees.
For interest bearing accounts: We reserve the right, at any time, to require not less than 7 days notice in writing before each withdrawal from an interest bearing account other than a time deposit, or from any other savings account as defined by Regulation D. Current interest rates are available in the bank lobby and are subject to change without notice. They are solely determined by the bank.
