6 month CD with a $10k deposit – MoneyAisle.com review Part 1
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An extensive test run is under way for MoneyAisle.com’s Bank CD “Live Auction” on BankVibe.com. For those that need a quick overview of MoneyAisle’s business model, here goes the short version:
Basically MoneyAisle formed a relationship with 71 banks (now actually 85) in which CD (certificate of deposit) and/or high yield savings account shoppers can place their terms into a text field and have banks (85 of them) bid for their business.
For example, if I am in the market for a 6 month CD and I have $10k available for deposit and I reside in Washington state, then I will place all these variables into a text field when prompted to. Shortly after, banks will bid live for my business. You can actually watch the APY percentage increase as the banks bid…
This brings us to part 1 of the MoneyAisle review.
MoneyAisle Test Run (PART 1: 6 month CD’s with a $10k deposit for the following states)
Results:
[TABLE=2]
To get a better idea of how these results stack up against other rates around the country compare the above with the following:
[TABLE=3]
Please note: On the second table keep in mind these are the best bank rates in the country according to Bankrate.com. Also, these rates may vary slightly for different zip codes in each state.
Conclusion: Moneyaisle.com stays consistent with it’s high rate offers, while Bankrate.com touts the highest CD rate.
Part 2 of the MoneyAisle.com review later this week.
December 18th, 2008 at 6:47 pm
Whats up with moneyaisle offering the same rates for 6 month CD’s? I think they need many many many more affiliate banks to make this thing work. Even if they could offer slightly different rates by, say, even 0.005% it would still add some value. IMO
December 19th, 2008 at 9:27 am
Good analysis but I think it shows the problem with the MoneyAisle model. The best rate on BestCashCow for a 6 month CD is now 3.75% APY, higher than the rates on MA. In addition, banks will have to pay a premium to MoneyAisle, limiting its appeal to them. A simple rate chart seems like a much more effective way of distributing deposits and competition than to create an artificial bidding environment.
December 19th, 2008 at 1:27 pm
Bestrateguru,
How does MoneyAisle’s business model induce an “artificial bidding environment”?
December 19th, 2008 at 1:30 pm
James,
The only thing I find slightly suspect about their business model is the term “banks bid Live” Im not quite sold on the “Live” part. Im pretty sure all 85 of these banks simply have a set rate they will allow for a Bank CD with any given duration, then MoneyAisle’s software gives the illusion of a live bid. Just my hunch…