MoneyAisle Passes $100 Million in Deposits
MoneyAisle, the online marketplace for banking products that we profiled shortly after its launch last June, said today that users have now put more than $100 million into certificates of deposit and high-yield savings accounts via the company’s reverse-auction system, in which banks submit competing bids for potential customers’ business. MoneyAisle CEO Mukesh Chatter said the company’s ability to reach the $100 million milestone in just a few months was in part a reflection of the economic downturn and consumers’ search for investments with less risk than the stock market. “Tripling our deposits from the previous quarter shows that consumers are looking to invest their money in a safe FDIC-insured growth account from a trusted source,” Chatter said in a statement.
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I don’t see why this is news. 100 Million in deposits is probably mostly churn from people re-depositing their maturing CDs. With CD rates near 0%, factoring in inflation, that’s negative returns.