Municipal Services

Certificates of Deposit (CDs)

Periodically, a municipality may have funds in excess of current expenses, and those funds can be invested for earnings. Rather than sweeping excess funds into "government issued instruments," deposits are reinvested locally. Because of the unique characteristics of a municipality, it has an opportunity to earn a "spread" between the interest rate earned on funds invested in a CD and the interest rate the municipality pays on a loan. In effect this "spread" reduces the cost of borrowing.

Speak with a Municipal Services Team expert for complete details.

Certificate of Deposit Account Registry Service (CDARS^®)

CDARS¹ is another effective way to be sure your municipal deposits—above FDIC insurance limits—are still FDIC insured. We have partnered with a group of banks through the CDARS program, and we take care of disbursing your funds over various institutions for you. When you sign a CDARS agreement with Union Bank we purchase CDs at participating banks for you within the FDIC dollar limits. With CDARS we lock in one interest rate and you receive one statement for all your CDs, even CDs with other banks. Now that's efficient! Stop into your local Union Bank branch, and we'll be happy to show you how you can secure your investments with CDARS today. You can also click on the movie (below) for an overview of the CDARS program.