CDARS and ICS spread large deposits across a network of banks so every dollar stays FDIC-insured — through one local bank relationship. How it works, what it costs, and who offers it in KC.
CDARS (the Certificate of Deposit Account Registry Service) solves a specific problem: your business or organization holds more than $250,000 in cash, and FDIC insurance stops at $250,000 per depositor, per bank. CDARS spreads your money across a nationwide network of banks — in chunks under the insurance cap — while you deal with one local bank, one rate, one statement.
How CDARS works
- You place a large deposit — say $1 million — with a participating local bank
- The network (run by IntraFi) divides it among other member banks, each holding less than $250,000
- Every dollar sits under the FDIC limit at some insured bank, so the full $1 million is insured
- Your local bank remains your single point of contact; you see one consolidated statement
Other network banks reciprocate with their customers' money, so your local bank keeps an equivalent amount of funding — which is why community banks like offering it.
CDARS vs. ICS
| CDARS | ICS (Insured Cash Sweep) | |
|---|---|---|
| Underlying account | CDs (fixed terms) | Money market / demand deposits |
| Liquidity | Locked to CD maturities | Daily or weekly access |
| Best for | Reserves with a timeline | Operating cash that must stay liquid |
| Insurance | Full FDIC via network | Full FDIC via network |
Both are IntraFi programs and most participating banks offer both. Businesses usually want ICS for operating cash, CDARS for reserves.
What it costs
There's typically no explicit fee — the cost is embedded in the rate, which runs somewhat below the best headline CD rates on the market. You're trading a slice of yield for full insurance without managing accounts at four different banks yourself. For treasurers of businesses, nonprofits, HOAs, and municipalities, that trade is usually worth it — split-it-yourself across multiple banks pays more but multiplies paperwork, signers, and statements.
Who offers CDARS in Kansas City?
IntraFi's network includes thousands of banks, and participation is common among KC-area community banks — the same institutions that compete hardest on business savings rates. Availability isn't always advertised on rate pages, so ask directly: "Do you participate in CDARS or ICS?" Any commercial banker will know. Start with the community banks on our business savings comparison — and for balances under $250k, skip the network entirely and just take the best insured rate in town.
The bottom line
Over $250k in business cash means choosing between juggling multiple banks or accepting uninsured exposure — unless your bank participates in CDARS/ICS, which gives you full insurance through one relationship. Ask the question; the community banks that want your deposits will say yes.