Certificate of Deposit Account Registry Service (CDARS)

Community Bank of the Chesapeake is pleased to offer a unique deposit product to our customers who are looking for FDIC protection and have more than $250,000 to invest. With CDARS, you can receive over $50 million in FDIC protection through Community Bank, making CDARS a valuable cash management or longer-term investment tool.

  • Safety: Your money can receive over $50 million in FDIC protection
  • Convenience: You work directly with us. You earn one interest rate and receive one monthly statement. You will also receive one year-end tax form.
  • Community Investment: The full value of your money can support lending opportunities in your local community
  • CD-Level Rates: Your money earns CD-level returns, which may compare favorably with other investment alternatives, including Treasuries, corporate sweep accounts, and money market mutual funds.

How Does CDARS Work?

We are members of a special network (Promontory Interfinancial Network). When you place a large deposit with us, we place your funds into certificates of deposit issued by other banks in the network-in increments of less than $250,000-so that both your principal and interest are eligible for complete FDIC protection. Other member banks do the same thing with their customer funds. With help from a sophisticated matching system, we exchange deposits with other banks that are members of the network.

These exchanges, which occur on a dollar-for-dollar basis, can bring the full amount of your original deposit back to our bank. Because the originating bank comes out “whole,” we can make the full amount of deposits received available for community lending purposes.

You will receive one regular statement detailing your holdings and your confidential information remains protected; it is never shared with any of the other member banks. Deposits placed using CDARS meet the pass-through insurance coverage guidelines established by the FDIC.