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ABA: The American Bankers Association

Promontory Interfinancial Network: Certificate of Deposit Account Registry Service®, or CDARS®


Provider: Promontory Interfinancial Network, LLC

CDARS logo

Banks that offer CDARS are members of the Promontory Network. With CDARS, Promontory Network members 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, 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 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 relationship institution sets the interest rate its customer receives and maintains complete ownership of its customer relationships. Customers earn one rate per CD maturity and receive one monthly account statement from the relationship bank.

CDARS also provides Promontory Network members with the ability to purchase other Network institutions’ excess deposits. This funding is available without collateralization requirements.

CDARS is offered in all 50 states, the District of Columbia, Puerto Rico, and Guam. Thousands of financial institutions are members of the Promontory Network.

CDARS helps banks to attract large-dollar relationships, replace higher-cost funding by offering customers access to multi-million-dollar FDIC insurance on CDs, and keep the full amount of the deposits on balance sheet or sell the funding. CDARS gives Promontory Network members the opportunity to serve as the one institution that meets all their customers’ needs.

Banker Review

“CDARS is a relationship-driven service that opens up the door where you’ve never gone before. Period.”
– Francis Hornung, Vice President and Sales Manager, Five Star Bank, NY


Using CDARS, depositors can enjoy:

  • Safety – Depositors can access multi-million-dollar FDIC insurance coverage.
  • Convenience – With CDARS, depositors manage one bank relationship, earn one rate per maturity on their investment, 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 eliminate the need for collateralization on an ongoing basis, thereby providing financial institutions with more flexibility to manage their investment portfolios. Thus, depositors and their banks can decrease administrative tracking burdens. Customers can also benefit from receiving only one 1099 at year end.
  • Community Investment – Under certain circumstances, the full amount of a bank customer’s deposit can support lending opportunities that strengthen the local community. This can be an important selling point for some depositors.

Use of the CDARS service is subject to the terms, conditions, and disclosures set forth in the CDARS agreements, including the CDARS-ICS Participating Institution Agreement and the CDARS Deposit Placement Agreement. Limits apply. CDARS, Certificate of Deposit Account Registry Service, Insured Cash Sweep, IND, and Bank Assetpoint are registered service marks of Promontory Interfinancial Network, LLC.


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Robin D. Gordon

SVP, Endorsed Solutions Relationship Management

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