Open a CDARS Account to Protect and Build Your Wealth

October 10, 2024

As your business grows, you may reach key milestones like hitting revenue goals or successfully expanding into new markets. Sustained business growth can also indicate that it’s time for your company to be more proactive about protecting accumulated business wealth.

Your business assets need to be deposited in such a way to maximize FDIC protection and help ensure steady growth over time. At Texas Gulf Bank, we specialize in helping business owners protect and build wealth through strategic banking services, including participation in the CDARS program.

Learn how CDARS services work, the protection and growth it offers business owners, and why so many businesses across the Southeast Texas Gulf Coast region choose us for CDARS support.

What is a CDARS Account? 

CDARS (Certificate of Deposit Account Registry Service) is a banking service that enables businesses to spread large deposits across multiple banks without having to set up and manage individual accounts.

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 deposit insurance limit is $250,000 per depositor, per ownership category at each FDIC-insured bank. 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.

The benefit for your business is that you can work with a single bank and receive one consolidated statement while your deposits are secure across multiple financial institutions.

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consultation with one of our bankers?

Please do not send sensitive information like your physical or mailing address, account number, Debit/ATM/Credit Card, Social Security Number or passwords/PINs through this form.

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How CDARS Helps Build Wealth

Although it’s essential to know that your business wealth is secure through FDIC protection, it’s just as important to be able to grow your wealth over time. The CDARS program allows you to accomplish both, by offering the potential for full FDIC coverage for your large accumulated wealth, and providing long-term savings and growth through the use of CDs.

CDARS promote the growth of business wealth in several key ways:

• Competitive rates: CDs generally offer higher, fixed interest rates compared to traditional savings accounts. By placing your funds into CDs, your business may earn more interest over time, increasing your business wealth steadily and securely.
• Flexible terms: You can choose CD terms ranging from a few months to several years, allowing your business to match liquidity needs with opportunities to maximize interest earnings.
• Reduced fees: With CDARS, you eliminate the need for multiple banking relationships, accounts, and statements that can lead to higher fees.
• Increased visibility: It’s easier to keep track of business funds in one place while reducing management costs.
• Long-term stability: CDs are considered a stable investment choice. By leaving your funds in a CD for an extended period, you benefit from predictable, compound interest without the market volatility of other types of investments.

Overall, CDARS may enable your business to safely and securely build wealth and cash reserves with minimal risk while taking advantage of multi-million-dollar FDIC protection.

*Note: CDARS funds withdrawals may be subject to Early Withdrawal Penalties.

When Should Your Business Consider CDARS? 

Sustained growth over time can position your business for the CDARS program. It may be time for your business to consider CDARS when you’ve achieved several readiness milestones, such as:

• Steady revenue and cash flow
• Accumulation of excess working capital
• Need for low-risk investments
• Ready for long-term financial planning

One key indicator that your business would benefit from CDARS is that you have enough revenue and excess working capital to invest long-term in a CD – without negatively impacting cash flow or business investment opportunities.

At Texas Gulf Bank, our Treasury Management department can help identify if your business is an ideal candidate for CDARS services.

Secure Business Wealth with CDARS at Texas Gulf Bank 

At Texas Gulf Bank, we understand the unique banking challenges faced by growing businesses. Our CDARS service is designed to help protect your cash reserves while ensuring your business wealth works hard for you.

As your business grows, so should your income, and a CDARS account is an excellent way to achieve both security and long-term growth.

Reach out to the Treasury Management Services team today for a consultation. Learn how we may be able to help you maximize cash reserves while providing the safety and simplicity your business needs to thrive.

Services offered through the Treasury Services Dept are fee-based and subject to approval.

Note:  CDARS® is a registered service mark within the IntraFi Network, LLC.