8/8/08
Highlands Union Bank Introduces Program for Deposits Greater Than $100,000

Through the new CDARS service, Highlands Union Bank now offers customers access up to $50 million in FDIC insurance coverage on their certificates of deposit. CDARS (pronounced “cedars”) is also known as the Certificate of Deposit Account Registry Service.

To offer CDARS, which is a deposit placement service, a bank must belong to the CDARS Network. When a customer places a large deposit with a Network member, the bank arranges for the placement of funds into CDs issued by other Network banks – in increments of less than $100,000 – to ensure that both principal and interest are eligible for full FDIC protection.

From the customers’ point of view, CDARS is one-stop shopping. Regardless of the number of CDs they receive, customers work with only one bank, sign one agreement and receive one account statement. The service is available for personal or business accounts, as well as nonprofits and public funds. Customers may sign up for CDARS protection at any HUB branch.

“There is nothing safer than FDIC insurance,” says Highlands Union Bank CEO Sam Neese. “Through CDARS, Highlands Union can provide access to as much as 500 times the standard $100,000 level of coverage at no extra charge – and that translates to peace of mind for our customers.”

CDARS was created in 2003 and is endorsed by the American Bankers Association. More than 2,000 institutions, including Highlands Union, are members of the CDARS Network. Deposits placed through CDARS meet the pass-through insurance coverage guidelines established by the FDIC.

Highlands Union has assets in excess of $650 million. The bank serves the region through its main office in Abingdon, Va., and 13 other locations in Virginia, North Carolina and Tennessee. These include two branches each in Abingdon and Bristol, Va.; offices in Glade Spring and Marion, Va.; full-service locations in Boone and Banner Elk, N.C., and a loan office in West Jefferson, N.C.; and branches in Rogersville, Blountville, Sevierville and Knoxville, Tenn.