IntraFi® Network Deposits

What Are the IntraFi® Network Deposits?

The purpose of the IntraFi® Network Deposits (formerly known as the Certificate of Deposit Account Registry Service (CDARS)) is to help people who invest in certificate of deposits (CDs) keep their money insured while also staying below the Federal Deposit Insurance Corporation (FDIC) insurance limit of $250,000 per depositor per bank. Using IntraFi® Network Deposits, an investor can spread money around various, local FDIC-insured banks.

IntraFi® Network Deposits also provide a way for consumers to access FDIC insurance on their CD investment principal and interest, and thus, provides them with a way to outsource their risk in the event of a bank failure.

Key Takeaways

  • IntraFi® Network Deposits (formerly Certificate of Deposit Account Registry Service (CDARS)) help consumers with large deposits keep their money insured by staying under the FDIC insurance limit of $250,000 per depositor per bank.
  • It effectively allows deposits larger than $250,000 to effectively become FDIC-insured.
  • The IntraFi® Network Deposits operates by opening accounts with various, local FDIC-insured banks across its large network of more than 3,000 institutions.
  • Customers who use IntraFi Deposits are able to keep an account at one local bank (rather than at many banks across the network). 

Understanding IntraFi® Network Deposits

IntraFi® Network Deposits is a for-profit service run by the Promontory Interfinancial Network (which was founded by a group of former financial regulators in 2003). IntraFi® Network Deposits comprises a network of more than 3,000 American banks and savings institutions. It is used by individuals, public funds, businesses, nonprofits, credit unions, and financial advisors.

IntraFi® Network Deposits eliminates the need for consumers to go from bank to bank to deposit money and enables them to invest their money in CDs that range in maturity from one month to five years. It also provides consumers with access to CD-level rates, which are often better than the rates for money market mutual funds and Treasury notes.

Users negotiate one interest rate per maturity when they make CD investments through IntraFi® Network Deposits. This eliminates the need to tally disbursements manually for each CD or negotiate multiple rates per maturity.

Every participating local bank in the registry sets its own interest rate, and it is paid on the entire deposit amount. The local bank also acts as a custodian for IntraFi Deposits. The sub-custodian for IntraFi® Network Deposits is the Bank of New York Mellon.

Using IntraFi® Network Deposits requires first finding a local participating bank and then depositing money with a separate Deposit Placement Agreement that is specific to IntraFi Deposits. Then, the local participating bank spreads the money across several member banks, ensuring that the amount of money in each bank never exceeds the FDIC limit of $250,000 per depositor per bank.

$5 billion in SRI

Nearly $5 billion in socially responsible deposits were placed through IntraFi Network Deposits in 2020.

Special Considerations

As a participant in the IntraFi® Network Deposits program, a consumer is able to conduct business with only one local bank. They receive a single consolidated statement that contains information for each account (rather than keeping multiple accounts at multiple banks and maintaining multiple logins and quarterly statements). Since banks pay to participate in the IntraFi® Network Deposits registry, consumers pay any applicable fees directly to their primary bank.

Consumers can also avoid exceeding the Federal Deposit Insurance Corporation (FDIC) insurance limit by opening individual accounts or using brokered CDs. However, these approaches are more complex and require significantly more time to execute.

Why Use IntraFi Deposits?

With IntraFi® Network Deposits, you can put cash balances to work in demand deposit accounts, money market deposit accounts, and CDs, all interest-bearing accounts with access to millions in FDIC insurance, through a single relationship with a local bank of your choice. 

How Does IntraFi Network Deposits Allow FDIC Coverage in Excess of $250,00 on a Single Deposit?

When you have deposits at a single bank with lone custodial capacity, you get up to a maximum of $250,000 in FDIC insurance at that bank. By using IntraFi Network Deposits, you can access multi-million-dollar FDIC protection through a single bank relationship because a larger deposit is divided into amounts under the standard FDIC insurance maximum of $250,000 and placed in deposit accounts at other network banks, accessible through your primary bank.

Which Organizations Have Endorsed IntraFi® Network Deposits?

IntraFi® Network Deposits has received professional endorsements from the American Bankers Association (ABA), as well as from various state-level banking associations. It has also formed alliances with Independent Community Bankers of America, FiServ, and the Bank of New York Mellon.

Article Sources
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  2. IntraFi Network. "Socially Responsible Investors."

  3. IntraFi Network. "Overview."

  4. IntraFi Networks. "Endorsements."