How to Keep Your Money Safe Above FDIC Insurance Limits

Written by: Fargo Inc

By Mike Gayette, Communications/PR Strategist at Starion Bank

We’ve all seen headlines about fintech companies rising and falling, and cryptocurrency projects that vanish overnight. With all the drama, it’s easy to be confused about where to stash large pots of money, especially for businesses who want to protect their funds for future investments and expansions. 

While the news has also featured a few bank failures, there is one important point to consider. When you deposit your money into an FDIC-insured bank, you have protection against losing your funds. This isn’t always the case with newer, less reliable methods. 

Of course, the FDIC insurance ceiling is $250,000, which is below the limit of what many businesses may stash away in their savings. But that doesn’t mean you’re stuck splitting your money into a series of different accounts. 

Starion Bank offers a service called CDARS, which means Certificate of Deposit Account Registry Service, that can help you take large deposits and spread them out across multiple banks within a specified network. The individual deposits all fall within the FDIC insurance limit, thereby keeping your money safe. 

The potential benefits of this service extend even further. 

  • Convenience: CDARS takes care of the account management for you. The service handles the distribution of your funds across multiple banks and saves you the hassle of managing them individually. This also makes it easier to keep each deposit within the FDIC insurance limits. 
  • Diversification: When you diversify deposits across several banks, you reduce the risk of being too concentrated in one place. If one bank suffers financial difficulties, the rest of your funds are already spread across other financial institutions. 
  • Interest Rates: Because CDARS uses Certificates of Deposit (CDs), you may enjoy competitive interest rates offered by your bank. Not only will you benefit from the safety of FDIC insurance, but you’ll also earn some extra while your money is reliably tucked away. 
  • Statements and Tax Reporting: Even though your money is spread across a network of banks, you will receive a single statement. Not only does the service make administration of your accounts easier, but it also simplifies your tax reporting. 

Of course, this doesn’t mean CDARS is the perfect solution for your needs. As with any financial tool, there is more to consider, including a couple of potential caveats. 

Because CDARS stores your money in CDs, there may be fixed terms that limit how quickly you can access the funds without paying early withdrawal penalties. And if you have your money in multiple accounts in different categories, such as trusts, FDIC insurance may apply differently. 

Your Starion Bank business banker can help you assess your individual and business goals, risk profile, and liquidity needs. A meeting with them will help you understand whether CDARS should be part of your overall financial strategy. 

To learn more, visit and schedule an appointment today. 

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Brady Drake is the editor of Fargo INC!