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I didn’t think it would be long before there was a new site out there where you could get banks to “compete” for your business with deposit accounts. MoneyAisle appears to be the first to take the idea and run with it.

The Idea:
The idea is simple. You register on the site and then you can initiate (run) an auction where you specify the amount of money you want to deposit and, in the case of CDs, the term, and banks bid on your “auction”. When the auction ends, MoneyAisle provides you with the contact information for the bank that is offering the highest APY.

From their web site:
“MoneyAisle is the next-generation online auction marketplace where consumers find great rates on bank CDs and High-Yield Savings accounts, absolutely free. Our methodology is simple: by having banks actively bid against each other in live auctions for each individual consumer request, the customer wins.

MoneyAisle’s patent-pending technology creates a safe, transparent auction, providing consumers with free access to great deals in real time. The results are instantaneous; you are offered the best rate available on our platform in just a couple of minutes.”

My results:
I decided to run an auction for a High Yield Savings account. I specified that my initial deposit amount would be $10,000. The entire auction/bidding process is totally automated, so the auction only took about 5 minutes to complete.

The end result was a winning bid with a rate of 3.40% from UmbrellaBank.com. This is the same rate that they advertise on their web site for the “Pot O’ Gold Money Market account”. So, in this case, I could found the same offer at the bank’s web site. Nonetheless, it was interesting to try.

Caveat:
I just want to remind you that with any web site like this, it would be in your best interest to sign up using an email address that wouldn’t bother you if you got some spam. I haven’t received any spam from them yet, but we’ll see what happens. Better to be safe than sorry and an inbox full of spam is pretty sorry.

What do you think of this new service? Will you add it to your list of places to check in your rate-chasing adventures?

My last post got me thinking about one of the newest banks that I added to my list of institutions, Pentagon Federal Credit Union. Penfed was one of the banks that I looked at when shopping for a mortgage on our new home and they have a very large customer base.

Since this is my first review of a bank or financial institution, I thought I would come up with a format for how the review will be laid out. I will use this format when writing other review in the future.

Review: Pentagon Federal Credit Union

Customer since January 2008

Active Accounts:

• Regular Share Account - Each customer must have a regular share account.
• Visa Platinum Gas Cash Reward card

Reason For Joining:

• I originally joined in the hope of seeing mortgage rates drop during January to refinance. Unfortunately, due to a miscommunication between my wife and I we didn’t lock in time to get the rate that would have been worth it for us to refi.
• I also joined to be able to apply for the Visa Platinum Gas Reward card.

Requirements, Terms, Restrictions:

• There are specific requirements to be eligible to join Penfed, please visit their How To Join page for more info.
• I was able to join because my Dad is retired Navy. They never called, emailed, or wrote him to confirm, but it is true.

Overall Impression:
Penfed’s signup process was entirely electronic, which I greatly appreciated. I opened the Regular Share with the $5 minimum and left it for a bit. I then applied for the Visa Gas Cash Reward card and received it within a timely manner. The best part about the Visa Gas card is the reward is applied as a credit to your bill every month. Unlike rewards that have to be “redeemed”, Penfed’s is done for you. I like that!

Are you a Penfed customer? How has it been for you?