Stop managing multiple bank relationships to ensure your deposits over $250,000 are eligible for FDIC insurance. Protect your money working with only one bank, BankSouth, using the ICS and CDARS service, while receiving insurance from participating network banks.
We are committed to providing the best banking services to our customers. We understand that you work hard for your money, and that’s why we offer two great options to help protect your funds: ICS, the IntraFi Cash ServiceSM, and CDARS, the Certificate of Deposit Account Registry Service®. With ICS and CDARS, you can simplify your investment protection process and make all of your funds eligible for FDIC protection, all while working with just one financial institution.
ICS, the IntraFi Cash Service, is a service designed to provide you with a secure and profitable way to manage large cash deposits. It’s a solution that lets you earn returns on surplus cash balances by placing them into demand deposit accounts, money market deposit accounts, or both.
When you deposit funds in BankSouth utilizing ICS, your funds are divided into amounts that do not exceed $250,000 and allocated across a network of banks within the IntraFi® network, with no more than $250,000 placed at each bank. This allows all your deposits to be eligible for FDIC insurance, even in aggregate amounts of more than $250,000, providing a safety net for your large deposits.
Unlike other investment alternatives, with ICS, your funds are not exposed to fluctuating net asset values, liquidity fees, or the uncertainty of money market mutual fund liquidity gates. This means that no matter how volatile the market becomes, your principal remains unaffected, offering you security and stability.
CDARS, the Certificate of Deposit Account Registry Service, is an intelligent and convenient solution designed to protect your large deposits. It’s a service that allows you to access multi-million-dollar FDIC insurance on your Certificate of Deposit (CD) investments.
At BankSouth, we are members of the IntraFi® network, comprised of FDIC-insured financial institutions. When you invest your funds with BankSouth utilizing the CDARS service, your deposit is split into portions, each under the standard FDIC insurance maximum of $250,000. These portions are then placed into CDs across banks within the IntraFi® network. This allows you to access FDIC coverage from many institutions while only dealing with one – us. We will also provide you with a regular statement and your confidential data remains secure with us.
These services are tailored to provide you with ultimate peace of mind while handling your funds. Here’s why you should consider leveraging ICS and CDARS for your investments at BankSouth.
With ICS and CDARS, your funds are eligible for multi-million-dollar FDIC insurance. This protection is backed by the full faith and credit of the United States government, ensuring that your deposits are secure. It’s worth noting that no investor has ever lost a penny of FDIC-insured deposits.
By working directly with BankSouth—a local community bank—you can access FDIC insurance without the need to track collateral continuously or manage multiple banking relationships. Say goodbye to the time-consuming task of manually consolidating bank statements and other administrative workarounds.
ICS and CDARS allow you to access funds placed into demand deposit accounts or money market deposit accounts (using ICS). Or, if a time deposit suits your objectives, you can place funds in CDs (through CDARS). You can choose from multiple CD term options, including 13 weeks, 26 weeks, 1 year, 2 years, and 3 years, to best suit your financial goals and needs.
Put cash balances to work with ICS and CDARS. With each CD maturity, earn one interest rate, allowing your money to grow over time.
By choosing ICS and CDARS, you’re also contributing to your community’s economic growth. The full amount of your funds placed in CDARS can stay local to support lending opportunities, thereby fostering a stronger community.1
Both ICS and CDARS enable you to access FDIC insurance on your funds, providing robust protection against potential bank failures.
While both ICS and CDARS offer access to multi-million-dollar FDIC insurance coverage, they serve different needs.
ICS primarily caters to those seeking to maintain access to their funds while earning interest. With ICS, your funds are swept into demand deposit accounts, money market deposit accounts, or both, across a network of participating banks. This allows you to access your funds on a next-business-day basis, which can be particularly useful for businesses or individuals that require regular, large transactions.
On the other hand, CDARS is suited for those looking to invest a lump sum of money for a fixed period, with the aim of earning interest. When you place a deposit through CDARS, your money is deposited into CDs at multiple banks within the IntraFi® network. The term of these CDs can range from 4 weeks to 3 years, making CDARS a good option for those who don’t require immediate access to their funds and want to maximize their returns over a specific timeframe while retaining access to FDIC insurance.
With both ICS and CDARS, your funds are distributed across a network of participating banks to ensure the money has access to FDIC insurance.
The exact number of banks will depend on the amount of your deposit and the standard FDIC insurance limit of $250,000 per depositor, per insured bank. For example, if you were to deposit $1 million, your funds would be allocated to at least five banks to ensure that your entire deposit (including interest that will be earned) is insured.
It’s important to note that even though your funds are allocated to multiple banks, you’ll only have to deal with your home bank (BankSouth). You’ll receive one consolidated statement from BankSouth for each service, regardless of how many other banks your funds are placed with. This simplifies the management of your account and saves you the hassle of dealing with multiple banks.
The account opening process is straightforward. Here’s how you can get started:
With ICS, you generally have the flexibility to request a Program Withdrawal on any business day. However, there may be certain restrictions on the number of withdrawals that may be made from funds placed in money market deposit accounts. Ask your BankSouth representative for more information.
With CDARS funds remain on deposit for the term of the respective CDs, which can range from weeks to years. Early withdrawals can be subject to substantial penalties.
It’s always important to discuss these details with your banking professional at BankSouth when setting up your ICS or CDARS account to ensure you fully understand the terms and any potential restrictions on withdrawals.
Yes, substantial penalties will apply for early withdrawals if funds have been withdrawn before the end of the term of a CD. The CDARS Deposit Placement Agreement provides more information. If you’re considering an early withdrawal, we strongly recommend discussing this with your Relationship Manager at BankSouth to fully understand any potential penalties and to explore other possible options.
Depositors do not have to pay fees to use ICS or CDARS. Below are a few exceptions that may apply.
ICS fees: Some banks may charge transaction fees, maintenance fees, or other service charges for using ICS. In some cases, these fees may be waived if you maintain a certain balance in your account.
CDARS fees: Similar to ICS, fees for CDARS can include transaction fees, early withdrawal penalties, and others. The exact fees can vary widely among different banks and can depend on several factors, including the term length of your CDARS account and the total amount of your deposit.
It’s important to discuss all potential fees with your banking professional before opening an ICS or CDARS account. This will help you fully understand the costs associated with these services and make an informed decision.
Yes, your personal information is typically safeguarded when using ICS and CDARS. Both services are offered in conjunction with reputable banks and financial institutions.
Both ICS and CDARS are services designed to provide increased FDIC insurance coverage by allocating your funds across a network of participating banks. These services allow you to access multimillion-dollar FDIC insurance.
Yes, you can combine the use of ICS and CDARS to access more total FDIC coverage. Both services distribute your funds across a network of participating banks, allowing you to access multi-million-dollar FDIC insurance on those funds.
By using both ICS and CDARS, you can place more total funds at network banks, potentially increasing the level of FDIC insurance coverage you can access.
Yes, businesses can use both ICS and CDARS. In fact, these services are often ideal for businesses because they allow for the placement of funds into demand deposit accounts, money market deposit accounts (using ICS), or CDs (using CDARS) across a network of participating banks.
To get started with opening an ICS or CDARS account with BankSouth, you’ll first need to sign the applicable agreements, and if applicable, complete account opening procedures. In most cases, with the proper documentation, we can begin placing your funds through ICS or CDARS within a day. This would typically involve a short meeting with BankSouth to discuss your requirements and complete the necessary paperwork.
Monitoring your funds placed through CDARS or ICS will be straightforward and convenient.
When you use CDARS, you work directly with BankSouth. You receive one monthly statement from our bank for your funds that have been placed through CDARS. The CDARS statement will include information regarding each of your CDs, such as maturity dates, interest earned, and other relevant details.
In ICS, we will also provide a monthly statement, with statements that list all your accounts with balances, interest earned, and other details. Additionally, you can also use the Depositor Control Panel to see where your funds are and to access other information.
Additionally, you will receive year-end tax forms, including Form 1099, with respect to funds placed through ICS and CDARS.
1 When deposited funds are exchanged on a dollar-for-dollar basis with other institutions that use CDARS and ICS, your bank can use the full amount of a deposit placed through CDARS and ICS for local lending, satisfying some depositors’ local investment goals or mandates. Alternatively, with a depositor’s consent, your bank may choose to receive fee income instead of deposits from other participating institutions. Under these circumstances, deposited funds would not be available for local lending.
Deposit placement through CDARS or ICS is subject to the terms, conditions, and disclosures in applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through CDARS or ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi, ICS, CDARS and Certificate of Deposit Account Registry Service are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network, LLC