Online Auctions Still Lagging on Rates
August 27, 2008
Moneyaisle.com and Zionsdirect.com are two online CD auctions where visitors can compete in a bidding process to find rates on CDs. A comparision made today on the two sites shows that the auction process (while very cool to watch) returns much lower rates than the rate aggregator sites:
5-year CD rates
5-year CDs on Moneyaisle.com ended up with a winning bid of 4.65% today vs 5-year CD rates listed on Money-Rates.com which are as high as 5.30% with another 25 banks over 5.00%
1-year CD rates
A recent auction on Zionsdirect for a one-year CD ended up with a winning rate of 3.60% vs 1-year CD rates listed on Money-Rates.com where the highest rate is 4.75% and another 40 banks are over 4.00%
There is no comparision in finding rates on the auction site versus the rate aggregator sites. The auction sites are also extremely limited in the number of banks that participate in comparision to the rate aggregator sites which lists hundreds and hundreds of different banks.