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Gain Access to Multi-Million-Dollar FDIC Insurance
on Certificates of Deposits

Stacks of Money with Certificate of Deposit Account Registry Service Logo


CDARS offers multiple benefits to investors who want to combine the security of access to FDIC insurance with the convenience of working directly with just one financial institution.

With CDARS, you receive:

  • Peace of Mind. Using the CDARS service, you can access multi-million-dollar FDIC insurance on CD investments.
  • One Relationship. You work directly with our financial institution.
  • One Rate. You negotiate one interest rate per maturity on CD investments placed through CDARS. With CDARS, there is no need to negotiate multiple rates or tally disbursements for each CD.
  • One Statement. You receive one regular statement detailing your CD investments. You no longer need to manually consolidate statements at the end of each month, quarter, or year.
  • No Hidden Fees. You will not be charged annual fees, subscription fees, or transaction fees for using CDARS. The rate you see is the rate you get.
  • No Ongoing Collateralization. Because CDARS deposits are eligible for FDIC protection, you can eliminate ongoing collateral tracking.
  • A Wide Variety of Maturities. Select from various maturities - ranging from 4 weeks to 260 weeks (5 years) - and choose the terms that best suit your investment needs.
  • Community Investment. The full amount of your funds can support lending initiatives that strengthen your local community[1].
  • Bank Safe, Bank Smart®.

    For assistance, please contact Jennifer Nemecek, Treasury Management Manager

    Frequently Asked Questions


    CDARS is one of the safest, smartest vehicles for investors looking to protect their large-dollar deposits while earning CD-level returns.

    How can deposits greater than the standard FDIC insurance maximum ($250,000) be insured by the FDIC?
    The standard FDIC insurance maximum is $250,000 per insured capacity, per bank. To protect a larger deposit, you could run around to multiple institutions to deposit your funds, or you could require a bank to collateralize your deposit and track changing collateral values on an ongoing basis. Alternatively, you can place your large-dollar deposit with First National Bank of Michigan, a member of the CDARS Network. Your deposit is divided into smaller amounts and placed with other CDARS Network members, each an FDIC-insured institution. Then, those member institutions issue CDs in amounts under $250,000, so that your deposit is eligible for FDIC insurance at each member bank. By working directly with First National Bank of Michigan, you can access coverage from many (and receive just one regular statement).

    Who has custody of my funds?
    Funds placed through CDARS are deposited only into FDIC-insured banks. First National Bank of Michigan acts as custodian for your CDARS deposits, and the subcustodian for CDARS deposits is The Bank of New York Mellon (BNY Mellon).

    Unique to CDARS, you as a depositor can obtain a confirmation of records maintained by BNY Mellon as subcustodian to reconcile those records with the statements received from First National Bank of Michigan. At any time, as often as desired, you as a depositor can obtain a certified statement from BNY Mellon that confirms the exact amount of your CDs, including principal balance and accrued interest, for each FDIC-insured institution that issues a CD through CDARS.

    You can submit a request for the certified statement, along with BNY Mellons processing fee, through First National Bank of Michigan. BNY Mellon will send the certified statement directly to you or to another party designated by you, such as an auditor.

    How can the amount of my funds be used locally if my CDs are issued by financial institutions all over the country?
    When we exchange deposits with other CDARS Network members on a dollar-for-dollar basis, the same amount of funds placed through the Network returns to First National Bank of Michigan. As a result, the total amount of your original deposit can remain with First National Bank of Michigan and be used for local lending. (CDARS Reciprocal transactions only.)1

    Is my account information safe?
    You work directly with just First National Bank of Michigan, the bank you know and trust. As always, your confidential information remains protected.

    What happens if a CDARS Network member bank fails?
    Most of the banks that have failed in the United States in recent years were not CDARS Network members or did not hold any CDARS deposits when they failed. When a Network member has failed, the banks CDs issued using CDARS in most cases have been transferred to a healthy institution, the FDICs preferred method for handling bank failures. In cases where the FDIC has been unable to find a healthy institution willing to accept such a transfer, it has arranged for the payment of the insured principal and accrued interest to the depositors. This payment has usually occurred within a matter of days.

    Certificate of Deposit Account Registry Service Logo

    1] When deposited funds are exchanged on a dollar-for-dollar basis with other banks in the CDARS Network, our bank can use the full amount of a deposit placed through CDARS for local lending, satisfying some depositors local investment goals or mandates. Alternatively, with a depositors consent, our bank may choose to receive fee income instead of deposits from other banks. Under these circumstances, deposited funds would not be available for local lending.

    Placement of funds through the CDARS service is subject to the terms, conditions, and disclosures in the service agreements, including the Deposit Placement Agreement (DPA). Limits apply. Although funds are placed at destination banks in amounts that do not exceed the FDIC standard maximum deposit insurance amount (SMDIA), a depositors balances at the relationship institution that places the funds may exceed the SMDIA (e.g., before CDARS settlement for a deposit or after CDARS settlement for a withdrawal) or be ineligible for FDIC insurance (if the relationship institution is not a bank). As stated in the DPA, the depositor is responsible for making any necessary arrangements to protect such balances consistent with applicable law. If the depositor is subject to restrictions on placement of its funds, the depositor is responsible for determining whether its use of CDARS satisfies those restrictions. CDARS and Bank Safe, Bank Smart are registered service marks of IntraFi Network.