FDIC Insured CDARS

What is CDARS?

CDARS is a deposit placement service offered through members of the Promontory Network. As a member of this special Network, we can offer you up to $50,000,000 in FDIC coverage for CDs placed through CDARS.

How does CDARS work?

When you invest in CDs placed through CDARS, your funds are allocated into CDs issued by banks that are also members of the special network. This occurs in increments of less than $100,000, so that both your principal and interest are eligible for complete FDIC protection. As a result, you can access multi-million dollar FDIC insurance coverage from many sources while working with just us. That makes things easy.

What else should I know?

·   You can choose from an array of maturities: 4-week, 13-week, 26-week, 52-week, 2-year, 3-year and 5-year.

·   Interest is compounded daily on an actual/365 basis.

·   Interest can be paid monthly, quarterly, semi-annually, annually or at maturity.

·   Currently, there is no secondary market for CDs placed through the CDARS service, and they are not transferable to other broker dealers.

·   Early withdrawals are permitted subject to the following penalties: 4-week = 28 days of interest; 13-week = 90 days of interest; 26-week = 90 days of interest; 52-week = 180 days of interest; 2-year = 360 days of interest; 3-year = 540 days of interest; 5-year = 900 days of interest; in each case, simple interest applies. The early withdrawal penalty is waived in the event of the death of the sole owner.

·   You must sign a Deposit Placement Agreement, which contains important terms and conditions.

·   Funds are placement on Wednesdays. You begin to earn interest on Thursday (or the next business day).

·   You will receive an order confirmation and month-end statements.

·   The Bank of New York is the sub-custodian and record keeper.

·   Your confidential information remains protected.

Want to learn more?

Contact GERALD FINLEY at 1-866-481-2339 for more Information about CDARS

If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor's funds through CDARS or a particular CDARS transaction satisfies those restrictions. Funds may be submitted for placement only after a depositor has signed a Deposit Placement Agreement with us. This agreement contains important information and conditions regarding the placement of funds by us. CDARS is a registered service mark of Promontory Interfinancial Network, LLC. 3/07