US bank account auction marketplace MoneyAisle says it generated over $100 million worth of certificates of deposit and high-yield savings deposits for financial institutions in the fourth quarter of 2008 as Americans concerned by the economic crisis seek out competitive rates.
Launched last June, the MoneyAisle marketplace enable surfers to shop for CD and high-yield savings account in a competitive auction environment, where up to 100 banks competitively bid against each other for customers through secure live auctions.
To initiate an auction, buyers use the site to set the amount of money they wish to invest in a high-yield savings account or CD, as well as the duration of the CD term. The auction then begins immediately, with participating banks bidding for the customer's business in real time. Once a bank wins the auction by offering the best rate, the customer can choose whether to accept it or not.
MoneyAisle claims that, as the economy flounders, there is anecdotal evidence that Americans are increasingly turning to CDs as a safe place for their investments. The site says users ran $1.65 billion worth of auctions in Q4, more than triple the numbers from the previous three months.
"The growth in CDs and High-Yield Savings deposits in just the last three months is a reflection of the current economic climate," says Mukesh Chatter, CEO, MoneyAisle. "Tripling our deposits from the previous quarter shows that consumers are looking to invest their money in a safe FDIC-insured growth account from a trusted source."