; Depositor safety net
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Depositor safety net

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These are trying times for the American investor. It seems everywhere you look: in the newspaper, on the television or on the Internet, you hear of more bad news about the stock market, housing prices and the state of the economy. Fortunately, bankers can provide a safe place for their customers' savings through a service called CDARS, or the Certificate of Deposit Account Registry Service, which allows banks to offer customers access to up to $50 million in FDIC insurance through a single bank relationship when investing in CDs. Bank customers benefit from CDARS because their funds are eligible for multi-million dollar FDIC insurance. Using CDARS' "One-Way Sell" transactions, network members with high liquidity or low loan-to-deposit ratios may sell their "excess deposits" to other members -- banks that need funds. For many members, CDARS has been a winning strategy. John L. West, president of Community National Bank of Midland, views CDARS as a powerful relationship tool.

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