Reserve funds should be invested in money market bank accounts. certificates of deposit, and treasury securities only. All other investments involve some level of risk and are inappropriate for investing reserve funds. Those associations that have reserves exceeding the FDIC government insurance limit should invest their funds in more than one financial institution or utilize the CDARS program which is available at most major commercial banks. The CDARS program is the Certificate of Deposit Account Registry Service which permits depositors to diversify their invested cash while working through a single commercial bank.