CDARS™

A safe, convenient solution for large-deposit investors

Until now, there were only three ways an investor could enjoy full FDIC insurance on deposits larger than $100,000: open and maintain accounts with multiple banks, invest with one bank by transferring ownership and registering accounts in the names of family members or corporate affiliates, or work through a broker-dealer.

All that has changed. Through the Certificate of Deposit Account Registry Service (CDARS™), large deposits can now be placed by Passumpsic Savings Bank into smaller-denomination CDs at multiple institutions. This service can offer you significant benefits:

Safety of FDIC insurance for large deposits: Because funds are placed in FDIC-insured CDs that are issued by network members, your total deposits over $100,000 can be eligible for full FDIC coverage.

CD interest: Rates may compare favorably with those of other high-quality, fixed-income investments.

Management convenience: You can manage all of your CD investments through a single relationship.

Security of working with a trusted, local source: Your transaction is managed by the people you know and trust at your local bank. [1]

Transactions through CDARS™ are processed quickly and easily

Interest is paid to CDARS™ account or to an account you designate. Each month, Passumpsic Savings Bank will send you a statement listing all your CDs, the banks issuing the CDs, maturity dates, interest earned, and other details.

At the end of each year, Passumpsic Savings Bank will send you a consolidated 1099 that reports your taxable interest income.

Other key benefits

By placing your funds through CDARS™, you can earn income, preserve capital, access FDIC insurance on your total deposit and benefit from the security that comes with a consistent banking relationship.

Through CDARS™, specific advantages are offered to institutional and business customers.

Public sector and nonprofit organizations [2]

• Funds are placed through the institution of your choice, effectively satisfying some organizations’ mandate to invest locally. [3]
• Because all funds are eligible for FDIC insurance, deposits may not need to be collateralized to conform to your investment policies.

Corporations and small businesses

• Cash managers have an alternative to commercial paper, money market funds, and repurchase agreements. Financial officers and small-business owners can enjoy access to FDIC-insured deposits through Passumpsic Savings Bank.
  

Contact a Personal Banker today for more details.

[1] Funds may be submitted for placement through CDARS™ only after a depositor enters into the CDARS™ Deposit Placement Agreement with a participating bank. The agreement contains important information and conditions regarding the placement of funds through CDARS™. Please read the Agreement carefully before signing it.

[2] Public sector depositors are responsible for complying with restrictions on the deposit of public funds imposed by state and local jurisdictions, some of which may prevent the placement of public funds through CDARS™. Please speak with a customer service representative at your bank if you have questions.

[3] When you place funds through CDARS™, the bank may receive an equal amount of reciprocal deposits from other banks in the network, satisfying some organization's local investment mandates. Alternatively, the bank, with your consent, may choose to receive fee income rather than reciprocal deposits.