Here’s How the Certificate of Deposit Account Registry Service (CDARS) Works1
We handle everything for you. Your deposit is broken into smaller amounts and placed with other banks in the CDARS network. Those banks issue CDs in amounts under $250,000 so your entire investment is eligible for FDIC insurance. You work with just one financial institution, but with FDIC coverage insurance from many.
You’ll earn one rate on your entire investment, so there’s no need to deal with multiple rate negotiations or consolidate multiple disbursement checks.
You'll receive one regular account confirmation statement listing all of your CDs, along with their issuing banks, maturity dates, interest earned, and other details. With CDARS, you won’t have to manually consolidate statements, track changing collateral values, or use private surety bonds.