As a manager of public funds, your daily job requirements call you to protect the funds for schools, fire and police departments, hospitals, roads, and other public programs. Not only do these programs rely on you to keep them running without financial issues, the whole community also relies on you to keep these public services available for everyone. Because these programs are so vital to the community’s well being, it’s important to take every precaution to keep the funds safe and protected. However, if you’re not using the Certificate of Deposit Account Registry Service (CDARS) or Insured Cash Sweep service (ICS), federal regulations only require banks to insure your deposits against bank failure for up to the Federal Deposit Insurance Corporation (FDIC) limit of $250,000. To make sure any deposits over $250,000 are insured, FNB Fox Valley recommends using our CDARS or ICS service.
How do ICS and CDARs work?
At FNB Fox Valley, when we place your deposit through the ICS or CDARS service, that deposit is divided into amounts under the standard FDIC insurance minimum of $250,000 and is placed in deposit accounts at multiple banks within a special network. For example, with an ICS, you place funds into demand deposit accounts (unlimited program withdrawals) using the ICS demand option, and place funds into money market deposit accounts (6 program withdrawals per month) using the ICS savings option. For CDARS, you put excess cash balances to work in CDs with a range of maturities ranging from 4 weeks up to 5 years. As a result, you get the benefits of coverage from many institutions, while working directly with just one.
What do they do?
ICS and CDARS offer the peace of mind that comes with access to multi-million dollar FDIC insurance, the opportunity to earn interest on your deposits, and flexibility. In addition, you can also choose the service (or combination of services) that best meets your needs for returns and access to your funds.
What are the benefits?
With ICS and/or CDARS, you can enjoy the convenience of banking directly with us and of earning one interest rate per service option or CD maturity. Use CDARS to earn a competitive rate of interest with termed CD’s to match your funding needs and use ICS to provide liquidity with a competitive return.
Enjoy Peace of Mind
You can rest assured knowing that your funds are eligible for multi-million dollar FDIC insurance protection that’s backed by the full faith and credit of the federal government.
Work directly with just us – a bank you know and trust – to access multi-million dollar FDIC insurance, and forego the need to use repo sweeps or to track collateral on an ongoing basis.
Support Your Community
Not only will you be keeping your community safe with your smart cash management, but you can feel good knowing that the full amount of your placed through ICS and/or CDARS stays local to support lending opportunities that build a stronger community.
Want to learn more about the CDARS or ICS? Visit your local FNB branch or contact Senior Vice President, Kathy Blumreich, via email at firstname.lastname@example.org.