Principal Bank Offers Multi-Million Dollar FDIC Protection
Joins CDARS deposit network
April 29, 2009 (Des Moines, IA) — Customers of Principal Bank® now have access to multi-million dollar FDIC protection on certificate of deposit investments (CDs). Principal Bank has joined the Certificate of Deposit Account Registry Service® (CDARS®) network.
Through CDARS, Principal Bank can spread deposits among FDIC-insured banks, allowing customers to manage all their funds through one portfolio at Principal Bank. Currently the FDIC insures up to $250,000 per customer per financial institution. By using CDARS, customers can place large-dollar deposits with a network member rather than many different institutions to receive the same FDIC coverage.
"This service can significantly reduce the administrative burden, especially during tax and financial reporting seasons," said Art Bacci, president and CEO of Principal Bank. "By working with one bank, there's no need to manually consolidate statements or interest disbursements or to calculate blended rates."
Through CDARS, Principal Bank customers receive:
- Full insurance: Customers can access up to $50 million in FDIC protection on CD investments.
- Convenience of one bank: Customers only need to work with Principal Bank to secure deposits.
- One rate: Customers earn one interest rate on each CD term through CDARS; there's no need to negotiate multiple rates or manually tally disbursements for each CD.
- No fees: Principal Bank does not charge annual fees, subscription fees or transaction fees for using the CDARS service.
- A variety of maturities: Customers can select from 1-, 2-, 3- and 5-year terms and can ladder CDs or combine maturities.
The American Bankers Association endorsed CDARS in 2003.
About Principal Bank
Principal Bank®, a member of the Principal Financial Group®, is an FDIC insured federal savings bank offering customers traditional and innovative banking products and services through the Internet, telephone personal bankers, U.S. Mail and a nationwide network of ATMs. Established in February 1998, Principal Bank was one of the first truly direct online banks approved and chartered by the Office of Thrift Supervision as a federal savings bank. For more information, visit www.principalbank.com.
About the Principal Financial Group
The Principal Financial Group® (The Principal®) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $247.0 billion in assets under management and serves some 19.1 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
- Funds may be submitted for placement only after a depositor enters into a CDARS Deposit Placement Agreement with Principal Bank.
- "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
- As of December 31, 2008