Community Association Banking · May 01, 2023

Ways to Keep HOA Reserve Funds Safe Above FDIC Limits

You're focused on protecting your community association reserve funds—especially when they're approaching or over the $250,000 FDIC limit. Here are some ways to keep your reserves safe and secure while maintaining the ease of one banking relationship.

1 CDARS®

CDARS®, the IntraFi® Certificate of Deposit Account Registry Service®, is a convenient way to access FDIC insurance on CDs above the $250,000 FDIC threshold, earn CD-level rates and directly with only one financial institution.

2 ICS®

ICS®, the IntraFi® Cash Service, can secure large deposits while maintaining access to and earning interest on funds placed into demand deposit accounts and money market deposit accounts. Deposits are eligible for protection above the $250,000 FDIC limit that's backed by the full faith and credit of the US government.

3 Money Market Accounts

Money markets are tiered interest rate products, based on the balance in the account. This product can be used as an operating overflow account or as a reserve account.

4 CDs & Ladders

Rates and terms vary based on deposit amount and length of CD, with ladders offering fixed rates with access to your funds every few months.

The bottom line

If your community association has funds over $250,000 and isn't sure where to place them, it's important to talk with your financial provider to be sure your funds are safe.

As an industry leader, we understand your unique needs and put our expertise to work to help you protect and grow your funds—so you can stay focused on your communities. Explore our deposit and reserve solutions to learn more.

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Account openings and credit are subject to bank approval.

Deposit placement through CDARS or ICS is subject to the terms, conditions and disclosures in applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (SMDIA) at any one destination bank, a depositor's balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through CDARS or ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi, ICS, CDARS and Certificate of Deposit Account Registry Service are registered service marks of IntraFi Network, LLC. IntraFi Cash Service is a service mark of IntraFi Network, LLC.

CDARS Products:
Term offerings depend on the availability within the IntraFi network. Not all offerings may be available at all times. Rates subject to change. Offer subject to change.

This information is provided for educational purposes only and should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. First Citizens Bank (or its affiliates) neither endorses nor guarantees this information, and encourages you to consult a professional for advice applicable to your specific situation.

Third parties mentioned are not affiliated with First-Citizens Bank & Trust Company.

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Bank deposit products are offered by First Citizens Bank. Member FDIC and an Equal Housing Lender. icon: sys-ehl.

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