Zions Direct’s Live Auctions on E-Bay

The live CD auctions at Zions Direct have been around for a whole and allow visitors to bid on CDs offered by member banks of the Zions Direct progrma. The current issuers are Zions Fist National Bank, Amegy Bank of Texas, National Bank of Arizona, Vectra Bank Colorado, and Nevada State Bank. Recent results have been less than thrilling with market-clearing yields of 3.90% on 1-year CDs, 3.80% on 6-month CDs, and 3.90% on 90-day CDs. While these yields are better than local bank rates and comparable yields on U.S. Treasuries, they are well-below the top CD yields posted at money-rates.com. Still The Savings Investor has noted more than one closing yield which was very competitive so these auctions are worth monitoring.

Zions Direct has also opened up a new E-Bay store at Zions Direct Live Auctions where E-Bay users can bid on a $1,000 Investment Account Voucher. This one a little bit of a head scratcher as the users are bidding the vouchers close to the $1,000 value and in some cases over the $1,000 voucher amount. Zions Direct is trying to open up new brokerage accounts and this may be a good marketing tool as a $1,000 voucher sounds great, but you have to wonder about those winning bids at $995 and higher giving the “winner” in effect a $5 voucher with their new broker. If bidding slows down a bit with this E-Bay store investors may be able to steal a voucher or two at a reasonable price, just don’t tell too many people about this promotion!!