ICS and CDARS for Public Funds
Managers of public funds work to keep monies for local governments, schools, police departments, public hospitals, roads, public utilities, and other public entities safe. But this work does not come without challenges.
With ICS®, the Insured Cash Sweep® service, and CDARS®, government finance officers can access multi-million-dollar FDIC insurance, earn a return, and manage liquidity needs―all while supporting their local communities.1
Using ICS and/or CDARS, government finance officers can:
Enjoy peace of mind
ICS and CDARS deposits are eligible for access to multi-million-dollar FDIC insurance that’s backed by the full faith and credit of the United States government.
By providing access to FDIC insurance through a single bank relationship, ICS and CDARS can help public units comply with investment policy mandates. And with access to FDIC insurance, government finance officers can reduce ongoing collateral-tracking requirements. This means they can spend more time accomplishing their goals.
Excess cash balances can be put to work in demand deposit accounts (using the ICS demand option), money market deposit accounts (using the ICS savings option), or CDs (using CDARS).
Enjoy unlimited program withdrawals using the ICS demand option or up to six program withdrawals per month using the ICS savings option. CDARS offers multiple term options that can help government finance officers meet their cash management needs.
Support the community
Government finance officers can feel good knowing that the full amount of the public unit's funds placed through ICS and CDARS can stay local to support lending opportunities that build a stronger community.1
Simply put, with ICS and CDARS, government finance officers can have it all.
 When deposited funds are exchanged on a dollar-for-dollar basis with other banks in the Promontory Network, a bank can use the full amount of a deposit placed through ICS or CDARS for local lending, satisfying some depositors’ local investment goals or mandates. Alternatively, with a depositors’ consent, and if authorized under state law, a bank may choose to receive fee income instead of deposits from the banks. Under these circumstances, deposited funds would not be available for local lending.
Placement of funds through the ICS or CDARS service is subject to the terms, conditions, and disclosures in the service agreements, including the Deposit Placement Agreement (“DPA”). Limits apply and customer eligibility criteria may apply. In the ICS savings option, program withdrawals are limited to six per month. Although funds are placed at destination banks in amounts that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”), a depositor’s balances at the relationship institution that places the funds may exceed the SMDIA (e.g., before ICS or CDARS settlement for a deposit or after ICS or CDARS settlement for a withdrawal) or be ineligible for FDIC insurance if the relationship institution is not a bank). As stated in the DPA, the depositor is responsible for making any necessary arrangements to protect such balances consistent with applicable law. If the depositor is subject to restrictions on placement of its funds, the depositor is responsible for determining whether its use of ICS or CDARS satisfies those restrictions. ICS, Insured Cash Sweep, and CDARS are registered service marks of Promontory Interfinancial Network, LLC.