What Are IntraFi Network Deposits?

IntraFi Network Deposits (formerly known as the Certificate of Deposit Account Registry Service [CDARS]) helps𒈔 people with large bank de𝄹posits keep their money insured by staying below the Federal Deposit Insurance Corp. (FDIC) insurance limit of $250,000 per depositor per bank.

With IntraFi deposits, an investor can spread money around among several FDIC-insured banks using multiple 澳洲幸运5官方开奖结果体彩网:certificates of deposits (CDs), demand deposits, or money market accounts (MMAs). IntraFi gives consumers with large deposits a way to outsource their risk in the event of a 澳洲幸运5官方开奖结果体彩网:bank failure.

History of 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 comprises a network of more than 3,000 U.S. banks and savings institutions. It is used by individuals, public funds, businesses, nonprofits, 澳洲幸运5官方开奖结果体彩网:credit unions, and financial advisors.

How IntraFi Deposits Work

IntraFi Network Deposits eliminates the need for consumers to go from bank to bank to deposit money and lets them invest their money in CDs that range in maturity from one month to five years. The system also gives consumers access to 澳洲幸运5官方开奖结果体彩网:CD-level rates, which are often better than the rateꦗs for money market accounts (MMAs) and Treasury notes.

When your funds are placed by IntraFi, they are divided into amounts under the standard FDIC maximum and placed with other network members—each an FDIC-insured institution. This makes your deposit eligible for FDIC insurance at each member bank.

Users negotiate one interest rate per maturity when they make CD investments through IntraFi 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 澳洲幸运5官方开奖结果体彩网:custodian for IntraFi deposits. The sub-custodian for IntraFi Network Deposits is the Bank of New York Mellon.

IntraFi doesn't charge depositors to use its service, but banks in the network may charge their own fees to open or maintain CD accounts, including monthly fees or excess-withdrawal fees.

Pros Explained

• Provides FDIC coverage for deposits greater than $250,000: IntraFi deposits allow large depositors to gain multimillion-dollar FDIC protection on funds above the FDIC's coverage limit.
• Consolidates multiple large deposits at a single banking institution: Having an IntraFi deposit eliminates the need to deal with accounts at multiple banks.
• Free service: Using the IntraFi network to expand FDIC coverage isn't costly, but depositors taking advantage of the service should familiarize themselves with custodian or managing-bank fees.

Cons Explained

• Possible lower interest rate on CDs selected: The CDs and their maturity chosen by the bank managing your large deposit may not be the highest available.
• Some loss of control over the management of your money: Once you set up participation in the IntraFi Network Deposits program, decisions about the CD instruments used and their placement are made by your bank and custodians, rather you.

How To Find an IntraFi Bank

Using IntraFi Netw♔ork Deposits requires first finding a loca♈l participating bank and then depositing money with a separate Deposit Placement Agreement 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.

To find a participating bank, check with your own financial institution to see if it offers IntraFi's services, or use IntraFi's  search to find a local one that is a member if your bank isn't.

As a participant in the IntraFi Network Deposits program, you are only able to conduct business with one local bank. Depositors receive a consolidated statement showing information for each account (instead of keeping multiple accounts at multiple banks and maintaining several logins and getting many quarterly statements). Because banks pay to participate in the IntraFi regist𝐆ry, consumers pay any applicable fees directly to their primary bank.

Who Needs IntraFi Deposits?

Any individual or entity wanting to make large bank deposits that enjoy FDIC protection can use an IntraFi deposit. Among common users of these deposits are high-net-worth individuals, public funds, businesses of various sizes, government entities, nonprofits, 澳洲幸运5官方开奖结果体彩网:credit unions, and financial advisors.

The Bottom Line

IntraFi Network Deposits help consumers with la🥃rge deposits keep th෴eir money insured by setting up several accounts that stay under the FDIC insurance limit of $250,000 per depositor per bank.

These accounts in effect allow dᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚeposits larger than $250,000 to be FDIC-insured because the money is spread across multiple CDs or savings accounts at different network institutions. Customers who use IntraFi deposits are able to keep a single account at one nearby bank in the network, rather than many accounts and investments scattered at multiple banks.