Banks Bid for Your Money at MoneyAisle.Com
Everyone is very familiar with eBay, the largest online auction and shopping website. You choose the products you want at eBay and bid for them. If you pay the highest price, you will win the bidding and the products will be shipped to you. Now, the new website MoneyAisle.com promises similar benefits to people looking for the best interest rates for their long- or short-term savings or CDs.
The philosophy behind the moneyaisle.com is very simple. They attract more than 100 banks from all over the country and set up the automatic bidding system according to the operation requirements of each bank. And then all of the banks will wait for the money appears and bid to offer a better, higher rate for consumers.
Sounded very interesting, so I tried it out. At the first step, I tell the bidder how much money I have—$100,000. And then tell them my zip code and then the bidding started automatically. All you have to do is waiting before the computer and wait for the winning bidder comes out. After several rounds of bidding, only one bank left and offered a rate of 3.8% APY. It seems that all of the bidding banks are FDIC insured. There is nothing to worry about if my fund is under $100,000.
The only question remained is whether the rate is the best. So I went to visit the bankrate.com to find out the highest rate available for $100,000. Guess what? The highest interest rate I can get for the $100,000 is 3.5% APY. So it seems that the MoneyAisle could really bring higher rate for me.
The MoneyAisle is based on the automated software engine was developed by neoSaej, the company in Burlington, Mass. Each bank can adjust this software, based on goals or market conditions or their own operation rules. A hundred banks may bid in the first round, 70 in the second round, 30 in the third, until the bank with the highest offer wins the auction. If two banks offer the same final rate, the software randomly picks a winner. The winning bank pays a fee to neoSaej only if it acquires the customer.
The business model of MoneyAisle lets me think of the lendingtree.com, the other website that offer bidding system for mortgage and loan companies to offer customers the lowest rate.
If you are on the market shopping for a better rate, you can try to use the MoneyAisle. It’s free right now.
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Sounded very interesting, so I tried it out. At the first step, I tell the bidder how much money I have—$100,000. And then tell them my zipcode and then the bidding started automatically. All you have to do is waiting before the computer and wait for the winning bidder comes out. After several rounds of bidding, only one bank left and offered a rate of 3.8% APY.