CDARS® & ICS®
Through IntraFi®, we offer CDARS (the Certificate of Deposit Account Registry Service®) and ICS (the IntraFi Cash Service®), which enable you to access multi-million dollar FDIC insurance through other banks in IntraFi's network.
Benefits of CDARS and ICS
- Work directly with us at Merchants Bank and skip the paperwork of opening accounts at multiple banks.
- Earn one interest rate per maturity with CDARS.
- Receive one statement per service used and avoid the hassle of consolidating statements manually.
- Peace of mind that your funds are eligible for multi-million dollar FDIC insurance.
- Feel good knowing that your funds stay local and can support the lending needs of your community.1
CDARS, Certificate of Deposit Account Registry Service
With CDARS, you can access multi-million dollar FDIC insurance coverage on Certificate of Deposit (CD) investments by working directly with just us - a bank you know and trust.
- Choose from a variety of terms to fit your deposit needs, ranging from four weeks to three years.
- For each CD maturity, you'll earn one rate.
- You can choose to reinvest funds through a simple process.
How does CDARS work? The large deposit you place with us is split into increments less than the standard FDIC insurance maximum ($250,000) and placed into certificates of deposit issued by other banks in the IntraFi network.
This process allows for both principle and interest to be eligible for FDIC protection. You have peace of mind knowing you have access to multi-million dollar FDIC insurance coverage while working with just one bank.
ICS, IntraFi Cash Service
No two customers' needs are the same. That's why we offer flexibility with ICS (also known as Insured Cash Sweep). Your funds can be placed into demand deposit accounts, money market deposit accounts, or both. Let's take a closer look:
- Both options earn interest and have no minimum balance requirements.
- There are unlimited withdrawals for funds placed in demand deposit accounts, and you may make six withdrawals per month from funds placed in money market deposit accounts. Consider your needs and how often you'd like to access your funds to help determine which type of ICS account placement is right for you.
How does an ICS account work? When your funds are placed through ICS by Merchant Bank, that deposit is sent from your Merchants account to deposit accounts at other banks in the IntraFi network. You have the ability to check online where your funds are at all times.
The dollar amounts placed with other network banks are below the standard FDIC insurance maximum ($250,000). This enables your money to remain eligible for FDIC insurance protection while you continue to work with just one bank. It’s that easy.
[1] When deposited funds are exchanged on a dollar-for-dollar basis with other institutions that use CDARS or ICS, our bank can use the full amount of a deposit placed through CDARS or ICS for local lending, satisfying some depositors’ local investment goals or mandates. Alternatively, with a depositor’s consent, our bank may choose to receive fee income instead of deposits from other participating institutions. Under these circumstances, deposited funds would not be available for local lending.
Deposit placement through CDARS or ICS is subject to the terms, conditions, and disclosures in applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through CDARS or ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi, CDARS, Certificate of Deposit Account Registry Service, ICS, and IntraFi Cash Service are registered service marks of IntraFi LLC.
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