| CDARS^® | IND^® |  View a Brief Demo on How CDARS Works | 

Promontory Interfinancial Network, LLC ("Promontory") provides smart, innovative solutions that enhance the profitability of banks and other financial institutions. By using Promontory's ICS^®,  CDARS^®, and IND^®, financial institutions can directly manage their liquidity positions and, ultimately, their bottom lines. As a member of the Promontory Network, your bank can use the ABA-endorsed CDARS and IND services to do one or more of the following: 

• Offer customers access to full FDIC coverage on multi-million-dollar investments;
• Earn fee income fee by selling "excess" deposits;
• Access short- or long-term funding – available at favorable rates and without collateralization.

 CDARS^® (or the Certificate of Deposit Account Registry Service^®) 

Promontory's flagship service, CDARS^®, enables Network members to offer each of their customers access to multi-million-dollar FDIC insurance coverage, and to keep the full amount of those deposits on balance sheet or to sell the funding for fee income. (Of note, as of 3/31/2010, CDARS holdings average $1.6 million per customer with reinvestment rates averaging approximately 80 percent.) In addition to using CDARS to attract deposits, Promontory Network members can use the service to purchase wholesale funds at favorable rates. 

CDARS is a versatile funding tool that can help financial institutions to:

• Attract profitable, loyal relationships by offering customers access to multi-million-dollar FDIC insurance on their CD investments
• Keep the full amount of deposits on balance sheet (replacing higher cost funding), or sell the excess for fee income
• Tap cost effective, fixed- or floating-rate funding for short or long terms
• Reduce collateralization costs

As a deposit-gathering tool, CDARS provides each Promontory Network member with the opportunity to meet all of its customers' needs. Using CDARS, customers can access:

• Safety – Deposits are eligible for multi-million-dollar FDIC insurance coverage. 
• Convenience – With CDARS, customers manage one bank relationship, earn one rate per maturity, and receive one regular account statement, eliminating the need for multiple rate negotiations and manual consolidation of account statements. By providing access to multi-million-dollar FDIC insurance, CDARS can also eliminate the need for private insurance or ongoing collateralization – so customers can say "goodbye" to tracking changing collateral values on a recurring basis. (And, by providing access to insurance coverage for deposit amounts that, if uninsured, would require collateral or surety bonds, CDARS also provides financial institutions with greater flexibility to manage their investment portfolios while decreasing their administrative tracking burdens.) Customers can also benefit from receiving only one 1099 at year-end. 
• Rate – Customers earn CD-level returns. Depending on a bank's offering, these rates may compare favorably with other investment alternatives, including Treasuries, repo accounts, and money market funds. 
• Community Investment – With certain transactions, the full value of a customer's deposit can support lending opportunities that strengthen the local community. That fact can be an important selling point for some depositors.

  When a bank places a customer's deposit using the CDARS service, the deposit is broken into amounts under the standard FDIC insurance maximum ($250,000) and placed with other members of the Network, making the full amount eligible for FDIC insurance coverage. In return, the originating bank receives either matching deposits or fee income. This choice provides banks with a flexible balance sheet management tool, regardless of the individual institution's liquidity position. Note: Each originating bank sets the interest rate it offers and maintains complete ownership of its customer relationships. Funds can be placed through different types of transactions.

 Learn more about CDARS Reciprocal transactions.  Learn more about CDARS^® One-Way Sell^SM transactions.

In addition to the above, CDARS provides Promontory Network members with the ability to purchase fixed- and floating-rate funding without collateralization or stock purchase requirements.  Learn more about CDARS^® One-Way Buy^SM transactions. Learn more about CDARS^® Floating-Rate Funding^SM transactions.

CDARS is offered in all 50 states, the District of Columbia, and Puerto Rico by appoximately 3,000 Network members.  Read what bankers are saying about the service.

More about CDARS.  
 

IND^® (or Insured Network Deposits^®)

Promontory's IND^® service provides cost-effective, floating-rate funding to Network members and is available on an uncollateralized basis. Members can access amounts ranging from $25 million to multiple billions of dollars for terms of three to five years or more. Rates are based on a set spread over an established rate (e.g., the Federal Funds Effective Rate or One-Month LIBOR). IND funding comes from cash held in millions of brokerage sweep accounts across the nation and, as such, is considered relatively stable.

The IND service is easy for banks to use.

Custodial deposits are placed in omnibus accounts at participating banks. Customer-level accounting is the responsibility of the broker-dealer.

Banks settle on a daily basis, but do not pay settlement fees; the total cost of funds is the rate agreed upon with Promontory. The movement of funds between broker-dealers and banks is settled through IND's settlement bank – The Bank of New York Mellon.

More about IND.

To learn more about IND, please visit www.promnetwork.com or contact Promontory's Treasury Desk at (866) 776-6426 (select option 2) or treasury_desk@promnetwork.com. 

CAB CONTACT PERSON--CDARS^® AND IND^® 

Lisa Gold Schier (202) 663-5098
E-mail: lgoldsch@aba.com

CDARS and IND are registered service marks of Promontory Interfinancial Network, LLC.