Keep your money local and FDIC insured through ICS® (Insured Cash Sweep) and CDARS® (Certificate of Deposit Account Registry Service) while also earning interest!
How does it work?
Funds are sent to other financial institutions in amounts under the FDIC insurance coverage limit (currently $250,000). Although your funds will be invested with other financial institutions, you will only have to work with one bank, Redding Bank of Commerce.
What are the differences between ICS® and CDARS®?
ICS® accounts come in the form of a money market account or a demand account. The money market account is limited to 6 withdrawals per statement cycle*, whereas, the demand account offers full liquidity through unlimited program withdrawals. You also have access to same day withdrawals if processed during regular banking hours.
CDARS® holds the funds in Certificates of Deposit accounts so the funds cannot be withdrawn until the maturity date. If the funds are withdrawn before, a penalty may be incurred. The CDARS® service does pay a higher interest rate just as standard CDs typically pay more than demand accounts.
If you would like more information, please call (800) 421-2575 and ask to speak with a knowledgeable banker.