As banks are in the need of funds, new, innovative ways of attracting deposits are more interesting than ever. A new online financial service from the U.S. offers an ebay-like auction for new deposits. The model is simple: you put in the amount you can
deposit and the timeframe for it. Their system collects the bids from banks (in an automated way) for the interest rate. It works with CDs and high-yield savings accounts as well. The best rate offer can be picked by the customer.
As I can see their business is just starting now, and the offers are quite standard rates. Some more risky products would be good to see and more competitive rates too. However I consider this a good initiative in the fight for funds situation.