CDARS and ICS

Institutions like ours that offer CDARS and ICS are members of a special network. When we place your deposit through the CDARS or ICS service, that deposit is divided into amounts under the standard FDIC insurance maximum of $250,000. The amounts are then placed in CD’s (using CDARS) or money market deposit accounts (using ICS) at multiple banks. As a result, you can access coverage from many institutions while working directly with just one. You receive one monthly statement from our bank for each service in which you participate. As always, your confidential information is protected.

1. Set up your account with us, and sign a CDARS Deposit Placement Agreement and custodial agreement.
   
   
2. Agree to an interest rate with us for the CD maturity selected. We will ask you how you would like your interest to be paid––month-end, quarter-end, semi-annually, year-end, or at maturity––as well as whether interest proceeds should be paid directly to you or placed into your account with us.
   
   
3. Make your deposit. We will place your funds through CDARS into multiple CDs, each in an amount under the standard FDIC insurance maximum ($250,000), at other CDARS Network institutions so that both principal and interest are eligible for FDIC coverage. When your CDs are issued, you will receive notification from us confirming your deposits.

You will receive a monthly statement that lists all of your CDs, maturity dates, issuers, interest earned, and other details. Our bank is the only bank you will need to deal with for all CDARS- and ICS- related services, including deposits, reinvestments, withdrawals, and statements. In addition to your monthly statements, you will receive a single year-end 1099 that reports your taxable income (certain investors).