Have you ever wanted a fast, easy, and convenient way to take full advantage of FDIC insurance on deposits exceeding $250,000? Look no further! SouthStar Bank offers an easy and convenient way to keep your funds FDIC insured via our CDARS program up to $50 million per customer. What is CDARS? CDARS is an acronym for the Certificate of Deposit Account Registry Service. In short, CDARS allows a business to invest in Certificates of Deposit held by many FDIC-insured banking institutions, including SouthStar Bank. Who has custody of my funds? Funds placed through CDARS can only be deposited in FDIC-insured banks. SouthStar Bank would act as custodian for your CDARS deposits. CDARS network members swap deposits on a dollar-for-dollar basis, ensuring that the same amount of funds placed through the network are returned to SouthStar Bank. This means that your original deposit amount can remain at the bank and be used by you. Which will locally support the growth of the communities we live, work and volunteer. CDARS is one of the safest options for investors who want to protect their investments while continuing to earn interest rates only possible with CDs. Investing in the program can be a wise alternative to U.S. Treasuries. Similar to Treasuries, CDARS is also backed by the U.S. government. You may be worried about how the FDIC feels about such programs. Fortunately, the FDIC acknowledges the deposit placement service and has even encouraged it at times. The CDARS program has been thoroughly tested, and the service is recognized by both FDIC regulations and state statutes. What are the benefits of CDARS? CDARS allows you to make a single deposit and have those funds automatically distributed to enough financial institutions to achieve full FDIC coverage. During the setup process, you will get to decide which financial institutions your funds will be deposited into. Remember that while your CDs may be held by financial institutions nationwide, your funds can still be used locally. Just like standard CDs, your CDs in the CDARS program come with a range of maturities. You can choose from maturities ranging from one month up to five years. Second, there are no hidden fees in the CDARS program, including annual, transaction, or subscription fees. The rate you agreed on is the rate you will receive. The last benefit of the program is no ongoing collateralization. This eliminated the need to track changing collat4eral values routinely. What are the drawbacks of CDRS? Before investing in CDARS, you should be aware of the drawbacks. CDARS investments have restricted liquidity, meaning that your invested funds are all locked in CDs until they mature. If you need to access the funds before maturity, you will have to pay a penalty. If you think CDARS is right for you and your business, contact your local SouthStar Bank branch today or open a new Certificate of Deposit online!