Invest in a Community Development Bank
Are you a socially responsible investor interested in supporting Community Development Banks? You can help by depositing money in a local Community Development Bank, providing capital to make new loans in communities left out of the economic mainstream. Your investment will help build affordable housing, establish community facilities, create jobs and revitalize low income neighborhoods.
Banking on Communities
The Banking on Communities Initiative is an effort by CDBA and Promontory Interfinancial Network, LLC to help investors secure large deposits in CDBA member banks. By making a deposit with a member bank through the Banking on Communities Initiative, you can provide capital for our banks to lend more money to projects in underserved communities. Through the Banking on Communities initiative you can receive full FDIC insurance on your deposits, even if they exceed the $250,000 FDIC insurance maximum. As an added bonus, Promontory Interfinancial makes a charitable contribution to CDBA that we use to build the capacity of the community development banking sector.
How Does it work?
Banking on Communities is built on the Certificate of Deposit Account Registry Service (CDARS), a service provided by Promontory Interfinancial Network. CDARS allows investors to receive full FDIC insurance on multi-million-dollar deposits (some limits apply). CDARS places funds into Certificates of Deposit issued by other banks in the network (in amounts under $250,000) so both principal and interest-only investors receive full FDIC protection. Because deposits are swapped on a dollar-for-dollar basis, the full amount of your original deposit comes back to the originating bank and the full amount of your deposit goes to work in your community through your CDBA bank.
Investing in a Community Development Bank with CDARS is simple. When placing a deposit through a CDBA bank with CDARS, you work directly with only one bank.
- Your multi-million dollar deposits are eligible for full FDIC insurance.
- You earn one interest rate.
- You receive one account statement.
- Your account information is protected.