Banking On Communities Big

Keep Your Money Safe, Earn a Return, and Help Underserved Communities

The Banking on Communities initiative is a joint effort by Promontory Interfinancial Network and the Community Development Bankers Association (CDBA) to help CDBA member banks raise funds that can be used to increase lending in underserved communities. The CDBA is a national trade association of the community development banking industry and was established to help its members better meet the credit needs of their communities. Because of their size (small), age (young), and location (underserved communities), CDBA members often find their funding options limited and have fewer resources to devote to attracting deposits. ICS®, the Insured Cash Sweep® service, and CDARS®, provided by Promontory Interfinancial Network and offered by banks to their customers, have helped CDBA banks to raise billions of dollars in deposits since the launch of this initiative in 2004.

“By utilizing the CDARS and Insured Cash Sweep services, CDBA member banks have successfully gathered deposits to help underserved communities. These services help the banks to offer their customers access to multi-million-dollar FDIC insurance, which raises customer comfort levels in a way that leads to more deposits for banks in distressed areas―which, in turn, can increase funding available for lending initiatives in economically challenged cities and towns.”

- Jeannine Jacokes
Chief Executive and Senior Policy Advisor
Community Development Bankers Association

How Insured Cash Sweep and CDARS Can Help

When you work with a participating CDBA bank to place funds through Insured Cash Sweep and/or CDARS, the full amount of your deposit is eligible for FDIC insurance - even amounts exceeding the standard FDIC insurance maximum of $250,000 (though limits do apply) - and can be made available for lending initiatives in economically distressed communities. These initiatives can include producing affordable housing, financing small businesses, creating jobs, and expanding neighborhood facilities that provide much-needed services for low-income families.

You Can Benefit, Too.

Earn a Return
Earn interest on funds placed into demand deposit accounts, money market deposit accounts, and/or CDs.
Enjoy Peace of Mind
Rest assured knowing that your funds are eligible for multi-million-dollar FDIC insurance―protection that is backed by the full faith and credit of the federal government. No one has ever lost a penny of FDIC-insured deposits.
Feel Good About the Difference You Are Making
Know that the full amount of your funds placed through Insured Cash Sweep and/or CDARS can support lending opportunities that create a brighter future for others.1


How Insured Cash Sweep and CDARS Work
How CDARS ICS Works People 700Px No Text

All CDBA banks are Community Development Financial Institutions (CDFIs). When you deposit funds into the Insured Cash Sweep or CDARS service through a participating CDFI, everything is handled through that CDFI. That CDFI uses ICS and/or CDARS to place funds into demand deposit accounts (through the ICS demand option), money market deposit accounts (through the ICS savings option), and/or CDs (through CDARS) with other banks that offer these services. This occurs in increments <$250,000 so that both principal and interest are eligible for FDIC insurance. By working directly with just one institution, you can access coverage from many. You receive just one regular statement per service or service option utilized, and your confidential information remains protected.


5 East Steps to Get Started

  Insured Cash Sweep CDARS
1 Sign an ICS Deposit Placement Agreement.2 Sign a CDARS Deposit Placement Agreement and deposit funds.2
2 Identify an existing transaction account or establish a new transaction account to be used with ICS. Your funds are placed using the CDARS service.
3 Your funds are placed into deposit accounts at other ICS participating banks. Your CDs are issued by banks in the CDARS Network.
4 See where your funds are at all times by using online tools specially developed for ICS. Receive confirmation from your bank of your CDs.
5 Receive one monthly statement from us summarizing your account activity and balances across institutions. Receive consolidated interest payments and one monthly statement.

1 When deposited funds are exchanged on a dollar-for-dollar basis with other banks in the ICS or CDARS Network, a participating institution can use the full amount of a deposit placed through ICS or CDARS for local lending, satisfying some depositors’ local investment goals or mandates. Alternatively, with a depositor’s consent to certain types of ICS and/or CDARS transactions, the bank may choose to receive fee income instead of deposits from other banks. Under these circumstances, deposited funds would not be available for local lending.

2 If you are subject to restrictions with respect to the placement of funds in depository institutions, it is your responsibility to determine whether the placement of funds through ICS or CDARS satisfies those restrictions.