ICS and CDARS

Institutions that offer ICS^® and CDARS^® are members of the IntraFi network. When funds are placed in these services, that deposit is divided into amounts under the FDIC insurance maximum of $250,000 and placed in demand deposit accounts, money market accounts, or CDs at multiple banks. As a result, the depositor accesses coverage from many institutions while working directly with just one. Depositors receive one monthly statement for each service in which they participate.

The Insured Cash Sweep (ICS^®) accounts provide FDIC protection on Demand Deposit and Money Market accounts. Depositors using the ICS^® services will need to designate an existing transaction account or create a new account to be used with ICS^®. Balances are swept in and out of the transaction account based on the instructions of the depositor. Depositors can check balances at all times using DCP, IntraFi’s online reporting tool

The Certificate of Deposit Account Registry Service (CDARS^®) provides FDIC protection on certificates of deposit. Funds placed in the CDARS^® service go directly into CDs without the need to open an additional depository account. CDARS^® depositors receive regular account statements directly from InterFi.

To establish an ICS^® or CDARS^® account the depositor must sign a Deposit Placement Agreement and a custodial agreement. For ICS^® accounts we will need to open a transaction account or designate and existing account to be used.

1. Designate an account. For funds to be placed into demand deposit accounts or money market deposit accounts, identify a transaction account to use with ICS^®. Select an existing account or open a new one.

2. Complete the paperwork. Sign the applicable Deposit Placement Agreement and a custodial agreement.

3. Make your deposit. At your direction, or based on triggering events outlined in the applicable Deposit Placement Agreement, funds will be split into amounts of less than $250,000―the standard FDIC insurance maximum―so principal and interest are eligible for FDIC protection. Those amounts will then be placed into the deposit accounts of various members of IntraFi’s network of financial institutions, which will send matching (or reciprocal) deposits to our bank. The result is that you can work directly with just our bank and receive just one regular statement, while accessing FDIC insurance through many. We can place funds into demand deposit accounts or money market deposit accounts using ICS^®, or into interest-bearing certificates of deposits using CDARS^®. Regardless of which option you select, you will receive a notification from our bank confirming your deposits.

• Your money is always placed at regulated, FDIC-insured institutions.

• You’ll access FDIC insurance from many banks while working with just one–ours, a bank you know and trust.

• ICS^® provides transparent reporting– consolidated statements that list all your accounts together with balances, interest earned, and other details.

• If you have placed funds into demand deposit accounts or money market deposit accounts, you can check these balances online and see where your funds are at all times.

• In addition to statements, you will receive yearend tax forms, such as 1099 forms. As always, your confidential information remains protected.