What is CDARS?

CDARS is short for Certificate of Deposit Account Registry Service and allows the depositor to divide his/her deposits, but allows the depositor to deal with a single bank that participates in CDARS. At the same time it allows the depositor's funds to go beyond the FDIC insurance limit in any single bank. CDARS, Certificate of Deposit Account Registry Service, is a private for-profit investing vehicle which takes large amounts of money from companies, individuals, non-for-profits and government funds. In turn, it breaks these larger amounts of cash into smaller investments which it places in over 3,000 banks and associations across the USA. This is useful because it reduces the amount of paperwork, red tape and time an individual or corporation would have to go through to achieve the same ends. The money is FDIC insured, and customers get a unified banking statement from their local bank which sets the interest rate.