ICS and CDARS for Public Funds

Managers of public funds work to keep monies for local governments, schools, police departments, public hospitals, roads, public utilities, and other public entities safe. But this work does not come without challenges.

With ICS®, the Insured Cash Sweep® service, and CDARS®, public units can access multi-million-dollar FDIC insurance, earn a return, and manage liquidity needs―all while supporting their local communities.1

See how one local bank is making a difference in its community.

Using ICS and/or CDARS, public units can:


Enjoy peace of mind

ICS and CDARS deposits are eligible for access to multi-million-dollar FDIC insurance that’s backed by the full faith and credit of the United States government.


Earn interest

Excess cash balances can be put to work in demand deposit accounts (using the ICS demand option), money market deposit accounts (using the ICS savings option), or CDs (using CDARS).


Save time

By providing access to FDIC insurance through a single bank relationship, ICS and CDARS can help public units comply with investment policy mandates. And with access to FDIC insurance, public units can reduce ongoing collateral-tracking requirements. This means they can spend more time accomplishing their goals.

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Access funds

Enjoy unlimited program withdrawals using the ICS demand option or up to six program withdrawals per month using the ICS savings option. CDARS offers multiple term options that can help public units meet their cash management needs.

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Support their community

Public fund managers can feel good knowing that the full amount of the public unit's funds placed through ICS and CDARS can stay local to support lending opportunities that build a stronger community.1

Simply put, with ICS and CDARS, public units can have it all.

Infographic: ICS and CDARS Usage by State

[1]  When deposited funds are exchanged on a dollar-for-dollar basis with other banks in the Promontory Network, a bank can use the full amount of a deposit placed through ICS or CDARS for local lending, satisfying some depositors’ local investment goals or mandates. Alternatively, with a depositors’ consent, and if authorized under state law, a bank may choose to receive fee income instead of deposits from the banks. Under these circumstances, deposited funds would not be available for local lending.

Placement of customer funds through the ICS or CDARS service is subject to the terms, conditions, and disclosures set forth in the agreements that a participating institution’s customer enters into with that institution, including the applicable Deposit Placement Agreement. Limits apply, and customer eligibility criteria may apply. ICS program withdrawals are limited to six per month when using the ICS savings option.

If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the depositors responsibility to determine whether the placement of funds through ICS or CDARS, or a particular ICS or CDARS transaction, satisfies those restrictions.

ICS, Insured Cash Sweep, and CDARS are registered service marks of Promontory Interfinancial Network, LLC.
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