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Personal Banking

CDARS® Network CD Program

If you’re looking to invest larger sums of money – with the protection of FDIC insurance – the Certificate of Deposit Account Registry Service (CDARS)† Network program may be just the tool you need.

With CDARS, you can purchase more than $250,000†† in CDs at Merchants Bank and still be eligible for FDIC coverage.

The program works by breaking down your investment among CDARS Network institutions, which issue CDs in smaller denominations. Those smaller CDs are eligible for FDIC insurance – and as a result, your entire investment is covered. Member banks issue CDs in denominations under $250,000 so your entire investment is eligible for full FDIC insurance.

Best of all, CDARS is easy to use. You only have to sign one agreement with Merchants Bank and decide on one rate and maturity – which applies to your entire investment. You receive one regular statement listing all your CDs, interest earned, maturity dates and more.

What could be simpler?

Contact your local branch for more information about CDARS and CDARS rates.

†CDARS is a registered service mark of Promontory Interfinancial Network, LLC.
††$100,000 minimum balance to participate

Questions?

  • What’s the difference between a Flexible CD and CDARS?
    What’s the difference between a Flexible CD and CDARS?

    A Flexible CD allows you to deposit or withdrawal funds with some limitations.  A Flexible CD is also limited to a maximum aggregate balance of $250,000 per customer. CDARS allows you to deposit more than $250,000 but still maintain full FDIC Insurance.

  • Do I have to invest more than $250,000?
    Do I have to invest more than $250,000?

    No, you may invest as little as $100,000.

  • If I withdraw money early, is there a penalty?
    If I withdraw money early, is there a penalty?

    To avoid penalties, withdrawals must be made at least seven calendar days from the most recent deposit, withdrawal or rate change.

  • How do I withdraw money?
    How do I withdraw money?

    The funds will be disbursed to the designated Merchants Bank account at maturity unless you have instructed us to reinvest the funds for you.

  • Do CD rates change during the year?
    Do CD rates change during the year?

    Yes they do, however the rate on your CD will remain fixed for the initial term of the account. 

  • Do I need to live or work in Vermont to open an account or loan?
    Do I need to live or work in Vermont to open an account or loan?

    Merchants Bank opens accounts or loans for people living or working in Vermont or communities adjacent to our offices.

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