CDARS is the Certificate of Deposit Account Registry Service. It is the easiest way to enjoy access to full FDIC insurance on large deposits. In short, any individual or organizations who wants to combine the convenience of working with a single bank with the security of FDIC insurance can benefit from CDARS.
With CDARS everything is handled through one bank. Large deposits are eligible for full FDIC coverage without opening multiple accounts through multiple banks.
Large deposits are broken into smaller amounts and placed with other banks that are members of the CDARS network. Those banks then issue CDs in amounts under the standard FDIC insurance maximum, so that the entire investment is eligible for FDIC protection. By working with just one bank you are eligible to receive insurance through many.
Additionally, you will receive one statement listing all of your CDs along with other details like maturity dates, interest earned and other important details.
You earn one rate on your entire investment—so you can forget about multiple rate negotiations and the need to consolidate multiple disbursement checks.
For more information, visit the CDARS website.