Deposit insurance, as the name implies, covers the depositor’s funds in the case of a bank failure. In the US, deposits of up to $250,000 per bank are insured by the FDIC (Federal Deposit Insurance Corporation), an independent agency created by Congress to maintain stability in the banking system. In some cases, clients have deposits that exceed $250,000. Did you know that FirstService Financial offers a suite of products that provide FDIC insurance on deposits in excess the FDIC’s standard limits? Insured Cash Sweep (ICS) and Certificate of Deposit Account Registry Service (CDARS) are two such available products.
Insured Cash Sweep
- Program includes network of over 3,000 banks
- Client relationship is with a single institution, but excess funds are placed with other ICS network banks
- Funds are liquid; six withdrawals per month; no penalties
- Ideal for associations with large balances and a need to remain liquid
Certificate of Deposit Account Registry Service
- Certificate of Deposit program that allocates funds over $250,000 to other CD accounts
- Higher rates of return than ICS programs; penalties for early withdrawal
- Automatic rollover upon maturity
- Ideal for associations with large balances and no immediate need for liquidity
Not sure which program is best for your association? Contact us today for a review!