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CDARS® at Isabella Bank

With CDARS®, you can access FDIC protection on multi-million dollar CD investments through Isabella Bank.  There are few guarantees in life – FDIC insurance is one of them.  CDARS® can be a valuable cash management or longer-term investment tool for you.¹


It’s one-stop shopping.  With help from CDARS®, you can access: Safety: Your money can access multi-million dollar FDIC coverage.  Convenience: You work directly with us. You earn one interest rate and receive one regular statement and one year-end tax form.  Community Investment: The full value of your money can support lending opportunities in your community.²  CD-Level Rates: Your money earns CD-level returns, which may compare favorably with other investment alternatives, including Treasuries, corporate sweep accounts and money market funds.

How does CDARS® work?

We are a member of a special network.  When you place a large amount with us, we place your funds into CDs issued by other banks in the same network – in increments of less than the standard FDIC insurance maximum – so that both principal and interest are eligible for complete FDIC protection.  As a result, you can receive coverage from many banks while working with just one.  These exchanges, which occur on a dollar-for-dollar basis, can bring the full amount of your original deposit back to our bank.  As a result, we can make the full amount of your deposit available for community lending purposes. ²

What else should I know?

Now, you no longer have to spend time managing multiple bank relationships, administering various interest rates, organizing interest disbursements from various sources, or manually consolidating monthly statements.  This reduces your administrative burden, especially during tax and financial reporting seasons.

And with CDARS®, you can eliminate the need to monitor changing collateral values – another time saving convenience.  Of course, your confidential account information remains protected.

For more information about how CDARS® can benefit you, visit one of our offices today.

1. Funds may be submitted for placement only after a depositor enters into the CDARS® Deposit Placement Agreement with Isabella Bank.  The agreement contains important information and conditions regarding the placement of funds by us.  2. This benefit applies to some, but not all types of CDARS® transactions.  Let us know if this benefit is important to you, so that we can explain the relevant terms and conditions in more detail.  CDARS® is a registered service mark of Promontory Interfinancial Network, LLC.