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How CDARS Banks Can Help Your Business With Big Deposits

December 19, 2023

For your business to realize long-term success, it is vital to manage your finances in an efficient and seamless way. If your business regularly handles substantial deposits, you need a banking solution that provides the utmost security for your finances.

One of the most valuable tools for handling large deposits is utilizing the Certificate of Deposit Account Registry Service (CDARS)*. As a member bank of the Texas CDARS network, we can help you with this process through our Treasury Management Services.

Learn about the specifics of the CDARS bank process, the benefits to business owners, and why you should consider Texas Gulf Bank as your primary CDARS financial institution for your deposit needs.

How the CDARS Process Works

The Federal Deposit Insurance Corporation (FDIC) is a United States government agency that provides deposit insurance coverage for depositors of FDIC-insured banks.

The FDIC standard maximum insured deposit limit is $250,000 per depositor, per ownership category at each FDIC-insured bank. This applies to individuals, corporations, partnerships or unincorporated entities, which includes both nonprofit and for-profit organizations. All deposits owned by a corporation, partnership, or unincorporated entity at the same bank are added together and insured up to $250,000–separately from the personal accounts of the owners or members. Anything over the maximum deposit insurance amount is considered uninsured, meaning the individual or business could lose access to funds that exceed the FDIC standard limit. (Note: For additional information on covered accounts and ownership categories for calculating coverage limits or for calculating coverage limits of Revocable and Irrevocable Trust Accounts, see

In the past, individuals or businesses with substantial funds to deposit would either be forced to limit their total deposit amount at one bank to $250,000 or risk losing anything over the $250,000 threshold. Or, they would divide their deposits into smaller amounts between different banks and try to manage them manually.

To resolve this issue, CDARS (a registered service mark within the Intrafi Network LLC) allows you or your business to make large-dollar deposits and keep the entire amount (up to $50 million total) eligible for FDIC protection. 

How this works is each deposit is broken down into smaller amounts and spread out to participating FDIC-insured banking institutions on your behalf. Each deposit is slightly less than the $250,000 limit to allow for any accumulated interest growth.

CDARS deposits are eligible for multi-million-dollar FDIC insurance coverage (of up to $50 million) without having to juggle multiple bank accounts or risk any uninsured deposits. Account holders receive a regular statement from their primary financial institution listing each participating FDIC-insured bank holding their deposited funds, the principal balance of each, and any accrued interest.

This convenient and streamlined financial tool helps ensure your funds are easily accessible, and have the potential to generate interest for steady growth. (Note: Certificate of Deposit Early Withdrawal Penalty may apply for withdrawal prior to maturity.)

Key Benefits of CDARS for Business Owners 

Your business gains many advantages by choosing CDARS services to manage sizable deposits and streamline financial management. These benefits include the following: 

1. Greater FDIC Protection

CDARS deposits are eligible for FDIC insurance up to $50 million, offering peace of mind to business owners dealing with multi-million-dollar transactions. If your typical deposits exceed the standard FDIC insurance limit at one bank, CDARS allows you to benefit from maximum FDIC protection by spreading your funds across multiple banks within the network. 

2. Streamlined Management

Instead of spending valuable time and resources trying to manage multiple deposits across various banks, CDARS consolidates this process into a single banking relationship. You gain simplified financial management with regular reporting and access to your funds through one bank. 

3. Flexibility to Diversify

Using the CDARS network allows you to diversify your deposits by strategically spreading funds across other CDAR-member banks. This step minimizes your potential risk while improving security for your business finances.

Contact Us Today to Get Started 

For a seamless and secure way to process large deposits for your business, consider choosing a local community bank like Texas Gulf Bank as your primary CDARS financial institution. 

We have been a banking cornerstone in the Southeast Texas Gulf Coast region for over 110 years, with the regional insight and banking expertise you need to help your business thrive.

We offer a full range of exceptional Treasury Management Services options – including CDARS bank services – to help you manage your deposits in a secure, streamlined way.

To learn more about CDARS banks, how these services can benefit your business, or to apply for this service, contact the Treasury Services Department at Texas Gulf Bank.

We are eager to help you take proactive steps toward protecting and growing your business income.

*CDARS is a registered service mark within the Intrafi Network, LLC

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