MoneyAisle : Banks Bid for Your Business

200810101503.jpg I have been moving out of markets and into cash recently (although not enough ahead of the carnage this week) and I need somewhere to put it. My primary bank has ridiculously low CD rates and the other bank I use for CD type investments had okay rates but not especially good. I ran an auction process on MoneyAisle, detailing the amount and duration of the CD I was interested in and they came back with a rate that was a full 50 basis points better than anything I could find on my own. Nice result and I took the offer, which by the way was from a reputable bank (whatever that is these days).

It appears that 83 banks are participating in this service and there are no fees for consumers. There are multiple rounds of bidding so apparently there is some automated process that the banks participate in to optimize the auction process for the consumer.