These are tough times. To help, we're offering pieces of advice in the Business section this month.
Problem: You're too nervous to invest in the stock market, but your bank is offering paltry yields on CDs.
Solution: Auction your cash to the highest bidder. At MoneyAisle.com, more than 100 small and midsize banks compete for consumer deposits through live auctions. When a customer comes to the site and asks for the terms of a CD or high-yield savings account, the banks bid against one another – through automated auction software that runs on the Web site – to win the deposit. The cost is free to consumers, and you don't have to commit to investing anything before you see the results of an auction. Participating banks, which are all FDIC-insured, are screened by an independent bank-rating agency to filter out the riskiest banks.
Savers can also find high-yield CDs with brokered CDs, which are offered by banks and brokerage firms around the country and typically sold through brokerage firms and financial intermediaries. As the big brokerage firms expand their deposit business, many are offering attractive yields to lure buyers. Keep in mind that brokered CDs have different rules. If you cash out before they mature, you may lose some of your principal.
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Wall Street Journal
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