CDARS does anyone have experience with?

[alancw3]

so with interest rates being what they are and fdic coverage i was thinking about cdars. does anyone have an experience with them? thanks for any information.

http://www.cdars.com/

[FlashUNC]

I used to cover a couple community banks that participated in CDARS.

Its an interesting program and a way to get some security on funds beyond the FDIC limit, but the returns on deposits are so low at this point, I tend to think its tough to justify unless you need to keep the funds highly liquid.

[SPOKE]

i used to cover a couple community banks that participated in cdars.

Its an interesting program and a way to get some security on funds beyond the fdic limit, but the returns on deposits are so low at this point, i tend to think its tough to justify unless you need to keep the funds highly liquid.

+1

[1centaur]

I don't see how this program is "highly liquid." My definition of liquidity does not involve CDs, the point of which is to get a higher rate because you're locked in for longer than demand deposits (checking accounts). Locked in means less liquid.

As far as I can tell, all this program does is provide you more administrative convenience than if you bought CDs from around the country directly. If you lose out on the last possible drop of yield because you are not personally selecting those CDs, I would not be surprised.

[alancw3]

thanks for the replies. i guess i was just looking at the convenience of dealing with just one institution versus several. i do realize that there is a premium to pay for that convenience factor though. with the pathetic interest rates on us treasuries i was looking for an alternative that offered a high degree of security. i guess i have to stop by a participating bank and get rates to compare with buying cd's on my own.