Saturday, October 4, 2008

High Yield Saving Account Options & MoneyAisle

Given these harsh economic times with runaway inflation it is important for you to make sure that your liquid assets are in a safe location that can still provide a small return and generate extra income. Keeping your money in a account yielding 0.05% won't do you any favors in the long run.

One new site called MoneyAisle allows banks to bid for your assets. You simply enter an initial deposit and state and in seconds you will enter into an auction where banks will start bidding. After about a dozen quick rounds that take about a second each MoneyAisle will present you with the bank that is willing to offer you the best yield. Pretty cool, eh?

There are a few things I really like about the site:
1. Banks compete for your money. No need to do the extra research.
2. All banks are FDIC secured. No need to worry about the bank failing in these uncertain times.
3. You have no obligation to accept the offer. This gives you the opportunity to try a few times through a week to see if you can find higher yields.

MoneyAisle is a great way to help banks raise quick capital and also helps smaller banks compete with larger banks by showing up on the consumers radar. Any company that manages to take friction out of a business process tends to do well. I expect MoneyAisle to grow into a very profitable business and eventually offer other types of products such as insurance.

Here is a list of other opportunities if you don't feel comfortable with MoneyAisle or you wan't to compare the rates that MoneyAisle offers you.

1. Washington Mutual Bank is offering a 4.00% yield.
2. is offering 4.00%
3. E8Trade Bank is offering 3.30%
4. HSBC is offering 3.25%
5. ING is offering 3.00% (perhaps the yield is lower due to all the ad dollars spent on marketing).
6. Citibank 2.25%
7. BankofAmerica 0.20% or something pitiful! Only use them if you need convince or have few little cash.

With the lack of easy credit facilities I expect interest rates to remain relatively competitive as banks needs to find cheap sources of money. Of course moving cash from one bank to another won't won't the credit crisis, but it will help you earn more!

No comments: