How you can make our IntraFi Cash Service work for you

Managing cash can be a challenge, especially for individuals and businesses with large balances. It can be time-consuming to manage multiple bank relationships and track collateral on an ongoing basis. Moreover, market volatility can negatively affect principal, leaving depositors exposed to unnecessary risks. That’s where First Utah Bank’s IntraFi Cash Service (ICS) offers a solution to these challenges, providing access to multi-million-dollar FDIC insurance through a single bank relationship.

What is the IntraFi Cash Service?

ICS allows depositors to rest assured that their funds are protected by FDIC insurance in amounts well into the millions, all backed by the full faith and credit of the federal government. When a deposit is made through ICS, it is divided into amounts under the standard FDIC insurance maximum of $250,000 and placed into deposit accounts at multiple FDIC-insured banks. This way, depositors can access FDIC coverage from many institutions while working directly with just one bank they know and trust. This eliminates the need to track collateral on an ongoing basis, consolidate statements, and disbursements from multiple banks.

ICS is a smart choice for depositors who value safety, yield, flexibility, and transparency. Deposited funds are not subject to floating net asset values, liquidity fees, or money market mutual fund liquidity gates. This means that market volatility will not negatively affect account value, and depositors can rest assured that they will not lose a penny of their FDIC-insured deposit.

Depositors can also earn interest on their cash balances by putting them to work in demand deposit accounts. Additionally, depositors can enjoy access to funds placed through ICS into demand deposit accounts, providing liquidity when it’s needed.

ICS also supports the local economy. When depositors make a large deposit with their bank through ICS, they can feel good knowing that their funds can be used to fund lending in the community. This can help small businesses support job or inventory growth, nonprofits further their missions, and individuals finance higher education.

Finally, ICS is easy to use. Deposit placement through ICS is subject to the terms, conditions, and disclosures in applicable agreements, and depositors can access key details about their accounts online, 24/7. This provides depositors with transparency and helps them stay confidently in control of their cash management.

The IntraFi Cash Service is a safe and simple way for individuals and businesses to manage their cash. It provides access to multi-million-dollar FDIC insurance through a single bank relationship, eliminates the need to track collateral on an ongoing basis, and offers flexibility and transparency. Additionally, it supports the local economy and offers an easy-to-use solution for managing cash.

What is CDARS?

Certificates of Deposit (CDs) are popular investments for individuals and businesses right here in Utah looking for safe, fixed-income returns. However, managing multiple CDs across different banks can be time-consuming and complicated, and FDIC insurance limits can restrict the amount of coverage available. CDARS, or Certificate of Deposit Account Registry Service, offers a solution to these challenges, providing access to multi-million-dollar FDIC insurance on CD investments through a single bank relationship.

With CDARS, depositors can access multi-million-dollar FDIC insurance for funds placed into CDs by working directly with one bank they know and trust. The deposited funds are exchanged on a dollar-for-dollar basis with other institutions that use CDARS, allowing the bank to use the full amount of a deposit placed through CDARS for local lending. This satisfies some depositors’ local investment goals or mandates, while others may choose to receive fee income instead of deposits from other participating institutions. Under these circumstances, deposited funds would not be available for local lending.

When a deposit is made through CDARS, it is divided into amounts under the standard FDIC insurance maximum of $250,000 and placed into deposit accounts at other network banks. This way, depositors can access FDIC coverage from many institutions while working directly with just one bank. They receive one statement from their bank detailing all their CDARS placements, making it easy to manage their investments.

CDARS is a smart choice for Utah businesses that value safety, ease, and transparency. With access to multi-million-dollar FDIC insurance, they can eliminate ongoing collateral tracking and avoid the hassle of opening accounts at different banks or in different insurable capacities. They can also avoid the need to manually consolidate account statements and interest disbursements on a recurring basis, reducing administrative burdens, especially during tax and financial-reporting seasons.

Additionally, depositors can earn interest on their CD investments, with rates set by their bank. These rates may compare favorably to Treasuries and government money market mutual funds and avoid the risks associated with prime money market mutual funds.

CDARS also supports the local economy. When local Utah businesses make a large deposit with their bank through CDARS, they can feel good knowing that their funds can be used to fund lending in the community. This can help small businesses support job or inventory growth, nonprofits further their missions, and individuals finance higher education. We need this kind of investment right here in the Beehive State.

The fact is CDARS is a safe and convenient way for individuals and businesses to invest in CDs. It provides access to multi-million-dollar FDIC insurance through a single bank relationship, eliminates the need to manage multiple bank relationships, and offers transparency and ease of use. Additionally, it supports the local economy and offers a smart choice for managing CD investments.

Do you want more information about how our IntraFi Cash Service and CDARS offerings can help you? Stop into our Salt Lake City or Lehi branch today!