CDARS

Through the CDARS® service, American Federal provides your business with safe and easy access to multi-million-dollar protection on CD investments.1

With CDARS, your business:

  • Works with one bank – access multi-million-dollar FDIC insurance coverage by working directly with American Federal
  • Earns one rate – earn one rate for each CD maturity and enjoy the option of reinvesting funds through a simple process
  • Receives one statement – receive an easy-to-read statement from American Federal summarizing all of your business CD holdings

How does CDARS work?

American Federal is a member of a special network. When you business places a large deposit with us, we can place the funds into CDs issued by other banks in the CDARS Network in increments of less than the standard FDIC insurance maximum so that both principal and interest are eligible for FDIC protection. As a result, your business can receive coverage from many banks while working directly with just one you know and trust–American Federal.

With access to FDIC insurance, your business can reduce collateralization requirements. There also is no need to manually consolidate account statements or interest disbursements. In short, the benefits of one bank, one rate and one statement can reduce your administrative burdens, especially during tax and financial reporting seasons, providing your business with more time to focus on profit-generating activities.

As always, your business’ confidential account information remains protected.

CDARS Frequently Asked Questions

Using CDARS for Public Funds in North Dakota

Using CDARS for Public Funds in Minnesota

Consult your American Federal Banker to determine which cash management solution fits your business needs.

1 Limits apply. 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. When deposited funds are exchanged on a dollar-for-dollar basis with other banks in the Network, we can use the full amount of a deposit placed through CDARS for local lending, satisfying some depositors’ local investment goals or mandates. Alternatively, with a depositor’s consent, our 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. Public fund deposits must be placed through a CDARS® ReciprocalSM transaction to ensure that the total dollar amount is maintained by us. Funds may be submitted for placement only after a depositor has signed a CDARS Deposit Placement Agreement with us. CDARS is a registered service mark and Reciprocal is a service mark of Promontory Interfinancial Network, LLC.

This information offers general advice and is not intended to be marketing, legal or tax advice.  Consult your attorney, tax accountant or other professional.