Published:
HomeStreet Bank Adds CD Program
Increases FDIC Coverage for Higher-Balance Deposits
Beginning September 2, HomeStreet Bank
customers will have access to multi-million dollar federal deposit
insurance for Certificates of Deposit (CDs) through CDARS®, the
Certificate of Deposit Account Registry Service. Customers will now be
able to deposit amounts of up to $50 million through CDARS and receive full
FDIC coverage.
Founded in 2003, CDARS is a CD deposit placement network with more than
2,200 community and regional banks as members. Through the CDARS program,
a customer's CD deposits that exceed the standard FDIC insurance level at a
single institution are placed among other FDIC-insured banks in the
network. The funds are split into increments of less than $100,000 and
distributed to other member banks, guaranteeing that both principal and
interest are fully insured.
Only banks with the FDIC's highest rating of "well-capitalized" may
participate in the network.
"We are confident this will be a great convenience for customers who
previously opted to take their higher-balance deposits to more than one
bank in order to guarantee that their funds were fully FDIC-insured," said
Paulette Lemon, retail banking director for HomeStreet Bank.
Customers work with their primary bank to select a CD term(s) ranging from
four weeks to several years in length. A single rate of interest set by
their primary bank applies to the customer's entire portfolio, and
customers get one statement detailing all of their CD investments.
"Through CDARS, customers can now deal solely with their primary bank, and
they'll have the security of knowing that their CD deposits are fully
insured at much higher limits," Lemon continued. "In short, it will be
much easier for depositors with greater balances to manage their accounts."
The CDARS program is endorsed by the American Bankers Association.
Founded in 1921, family- and employee-owned HomeStreet Bank is one of the
largest privately owned banks in the Pacific Northwest and Hawaii.
Headquartered in Seattle, the company has assets of $2.97 billion and a
network of 31 branch and mortgage offices. HomeStreet Bank is one of the
only banks in the country that has consistently received an "outstanding"
rating under the Community Reinvestment Act (CRA).
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Copyright © 2009, NewsBlaze,
Daily NewsTags: ,FinancialServices:RetailBanking, FinancialServices:PersonalFinance, ,WA,SEATTLE, WA
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