CDARS®, the Certificate of Deposit Account Registry Service®
Promontory Interfinancial Network, LLC ("Promontory") provides smart, innovative solutions that enhance the profitability of banks and other financial institutions. By using Promontory's CDARS, Insured Cash Sweep®, IND®, and Bank Assetpoint® services, financial institutions can build profitable, million-dollar relationships; manage their balance sheets; purchase cost-effective funding; and sell or buy bank assets.
With CDARS, banks that are members of the Promontory Network can offer each of their customers access to multi-million-dollar FDIC insurance and keep the full amount of these deposits on balance sheet or, with the depositor’s consent, sell the funding for fee income.
When a Promontory Network member places a customer's deposit using the CDARS service, the deposit is divided into amounts under the standard FDIC insurance maximum and placed with Network member banks in exchange for CDs. This makes the full amount placed eligible for FDIC coverage. In return, the originating institution receives either matching deposits or fee income, depending on its balance sheet management needs. Each originating institution sets the interest rate it pays and maintains complete ownership of its customer relationships. And the customer receives one monthly account statement from the relationship bank.
Alternatively, CDARS provides Promontory Network members with the ability to purchase an originating institution’s excess deposits. This funding is available without collateralization or stock purchase requirements.
CDARS is offered in all 50 states, the District of Columbia, Puerto Rico, and Guam. Approximately 3,000 financial institutions are members of the Promontory Network.