By: Lorrie Jackson | Category: Financial Services | Issue: August 2007
Brent Carroll, president of RCB Bank’s 71st and Garnett office, explains the CDARS program to Junior and Joan Beaver, RCB customers.
Over 25 years ago, FDIC limits were set by Congress at $100,000 per bank account. While it is wonderful to have such protection, this limit can often cause great inconvenience to those who have spent their lifetimes building up more than this amount. People often have accounts with several different banks to ensure security of their funds. Numerous accounts translate into numerous statements with varying rates of interests and differing renewal dates for certificates of deposit, commonly referred to as CD’s. In essence, more stress and “red tape” is created for the account holder.
In an effort to relieve account holders of this trouble, RCB Bank is now offering CDARS, or Certificate of Deposit Account Registry Services. With CDARS, RCB can offer clients the security of FDIC insurance with the convenience of one rate and one statement. “With the safety and convenience our bank offers through CDARS, our customers have a new smart option to help them manage their money,” says Ted McGuire, president of RCB Bank. “There are few guarantees in life. FDIC Insurance is one of them.”
The way CDARS works is simple. Instead of depositing money at several different banks, the client places all of his or her funds at a bank participating in the CDARS program. Using a sophisticated computer network, the bank, such as RCB, places the deposits at other FDIC insured banks across the country. The customer then manages their entire portfolio, which can be as high as $30 million, through RCB.
According to McGuire, CDARS is not just for the wealthy. “Retirees, owners of small businesses, nonprofit organization managers or just anyone who wants security can benefit,” he says. “We have especially found that schools and city organizations like the CDARS product because it eliminates the burden of pledged deposits.”
Brent Carroll, president of RCB’s 71st and Garnett branch, points out that the security factor is especially attractive to retirees. “A lot of people in their retirement years want a secure investment and a fixed income that won’t wither through uncertain circumstances such as a stock market correction,” Carroll says. “They don’t want to risk principle. They want principle preservation.”
Another aspect that is especially attractive to retirees is convenience. “Customers benefit from the ease of working with only one institution, RCB Bank, and receiving only one statement,” McGuire says. “This has eased frustration with many customers who previously had to keep track of several CD accounts all around town.”
With identity theft on the rise, can a program like CDARS, in which your money could be at several banks across the country, be secure? Carroll addresses this issue, saying, “With CDARS, all the customer’s sensitive information is maintained at the customer’s originating bank. The customer, however, gets to know everything about where their money is, receiving one statement that shows location, rates and terms.”
If CDARS sounds like the program for you, consider trusting RCB as your originating bank. For 70 years, RCB has faithfully served the Tulsa metro, striving to bring innovative banking solutions to its communities. Visit RCB at one of its 18 convenient locations in Claremore, Pryor, Broken Arrow, Tulsa, Owasso, Catoosa, Collinsville, Skiatook, Inola, Ponca City, Edmond and Oklahoma City. Visit www.rcbbank.com for the location nearest you.
Visit www.rcbbank.com for locations