By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor’s accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.

As you know, FDIC provides separate insurance coverage for deposits held in different ownership categories including, but not limited to single accounts, joint accounts, IRAs and trust accounts.

Basic FDIC Deposit Insurance Coverage Limits*

Ownership TypeCoverage Limits
Single Accounts
(owned by one person)
$250,000 per owner**
Joint Accounts
(two or more persons)
$250,000 per co-owner**
IRA and certain
other retirement accounts
$250,000 per owner
Trust Accounts$250,000 per owner
per beneficiary
subject to specific limitations
and requirements**
*These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.

For more information, visit the FDIC website.

Looking for a way to keep large deposits safe? Ask us about CDARS®.

With CDARS®, you can multi-million-dollar FDIC protection through Washington Trust. There are few guarantees in life - FDIC insurance is one of them. CDARS can be a valuable cash management or longer-term investment tool for you or your business.


It's one-stop shopping. With help from CDARS, you can access:

  • Safety - You can access multi-million-dollar FDIC insurance coverage.
  • Convenience - You work directly with just us. You earn one interest rate per maturity and receive one regular statement. Individual investors receive one year-end tax form.
  • Community Investment - The full amount of your deposit can support lending opportunities in your local community.
  • CD-Level Rates - Your money earns CD-level returns which may compare favorably with other investment alternatives, including Treasuries, corporate sweep accounts, and money market funds.

How does CDARS work?

Everything is handled through our bank. Your large deposit is broken into smaller amounts and placed with other banks that are members of the CDARS Network. Then, those banks issue CDs in amounts under the standard FDIC insurance maximum, so that your investment is eligible for FDIC protection. By working directly with just one bank - our bank - you can receive insurance through many.

What else should I know?

Now, you no longer have to spend time managing multiple bank relationships, administering various interest rates per maturity, organizing interest disbursements from various sources, or manually consolidating monthly statements. This reduces your administrative burden, especially during tax and financial reporting seasons.

And with CDARS, you can eliminate the need to monitor changing collateral values on an ongoning basis - another time saving convenience.

Of course, your confidential account information remains protected.

Ask us about how CDARS can work for you the next time you visit one of our branches, or find out more information.

Limits apply. Funds may be submitted for placement only after a depositor enters into the CDARS Deposit Placement Agreement with Washington Trust. The agreement contains important information and conditions regarding the placement of funds by us.

When deposited funds are exchanges on a dollar-for-dollar basis with other banks in the Network, we can use the full amount of a deposit placed through CDARS for local lending, satisfying some depositors' local investment goals or mandates. Alternatively, with a depositor's consent, our bank may choose to receive fee income instead of deposits from other banks. Under these circumstances, deposited funds would not be available for local lending.

CDARS is a registered service mark of Promontory Interfinancial Network, LLC.