Sign Up for Weekly Top Rate Emails from MoneyAisle

Every week MoneyAisle sends out a list of recent top live auction rates for FDIC insured bank Certificates of Deposit and High-Yield Savings accounts.

If you'd like to receive one of these emails, just go to MoneyAisle.com and register for a new account, making sure to check the tab marked "I would like to receive a weekly list of current rates from MoneyAisle."

If you're already registered, you can configure your account to receive these weekly email updates by heading to the "My Profile" section of MoneyAisle once you've logged in and editing your profile to make sure the box marked "I would like to receive a weekly list of current rates from MoneyAisle" is checked - it's easy, and you'll get clued into what the top rates are winning in live MoneyAisle reverse auctions every week.

If you can't wait each week to know which rates are winning, you can always run a live auction for yourself - as always, it's completely free to run a live MoneyAisle auction.

A Proposal for the FDIC

Recently, Congress extended the increased FDIC limits of $250,000 per account through 2013. This got me thinking about the FDIC limits and some of the ways it could intersect in a positive way with the current economic situation.

My suggestion: Have the FDIC insure all accounts, regardless of limit. How could the government afford this? By allowing those customers who wish to insure accounts above $250,000 to pay for it.

Hear me out: A consumer could pay, as an example, 5 basis points per $250,000 beyond the current FDIC limit to receive the extra insurance. So a customer with a 1 million dollar deposit would pay 15 basis points to insure the extra $750,000, if so desired.

In this system, there would be no extra payment for the status quo, the government would end up making more money through those willing (and with the means to) pay. We're already in a situation where the government seems to be implicitly backing the deposits at larger banks (the ones deemed "too big to fail"), so this approach would at least allow the federal government (and, by extension, taxpayers) to offset their insurance costs without burdening the bank - helping consumers get more peace of mind while assisting in stabilizing our banking system!

Banks would be inclined to gain access to these accounts as it would help them increase their lending. Interest rates for "Jumbo CDs" (accounts over $100,000) already tend to be higher, and this would allow the process to essentially pay for itself, with no extra burden on taxpayers.

An unconventional solution? Possibly. But that may be just what our banking system needs.

FDIC Extends $250,000 Coverage Limit Through 2013

We remarked before that an extension to the increased FDIC limit was happening, and yesterday President Obama signed it into law. According to the FDIC Website, deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor.

The FDIC goes on to state that these changes supersede the previous extension made on October 14, when the increased coverage limit first came into effect (that increase was initially supposed to end on December 31 of this year.)

It should also be noted that joint accounts - accounts held by a married couple, for instance - are covered at twice this level, up to $500,000.

At MoneyAisle.com, live auctions for savings accounts or CD rates support these increased FDIC limits. MoneyAisle.com users can deposit up to $500,000 in a MoneyAisle account - and every bank in the MoneyAisle network is an FDIC member.

What do you all think - will this extension eventually be made permanent or will the FDIC coverage limit actually revert back to $100,000 in 2014?

You can read more about the FDIC increase on their Website:
http://www.fdic.gov/deposit/deposits/changes.html

MoneyAisle in the News: Chicago Tribune

MoneyAisle.com and its reverse auction technology (which gets you great savings account and CD rates) was featured in the Chicago Tribune this weekend, in a story entitled "Free money, if you know where to look"

Search for higher interest rates on bank accounts and certificates of deposit at such sites as MoneyAisle.com

You can read the entire article here.

MoneyAisle in the News: AARP Bulletin

MoneyAisle was recently featured in the May edition of the AARP bulletin:

Save a Buck: Find Highest Interest Rates Online

Looking to stash your cash in a bank that offers the highest interest rate? At MoneyAisle.com, banks bid against one another to offer the best rate on savings accounts or certificates of deposit.

An Extension to the $250,000 FDIC Limit?

On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009. As we get closer to that December 31 date, a common question has been: will there be any steps to extend these increased limits?

Recently, the Senate voted to extend the $250,000 FDIC limit (by a margin of 91-5) through 2013. The bill now heads to the House. Other aspects of the bill:

• Allow the FDIC to take up to eight years, from the current five years, to recapitalize the Deposit Insurance Fund.
• Grant the FDIC temporary additional borrowing authority of $500 billion for systemic reasons -- subject to a two-thirds vote of the agency’s board, a two-thirds vote of the Federal Reserve, and the agreement of the Treasury secretary in consultation with the president.
• Allow the FDIC to levy bank holding companies for any systemic special assessment if they stand to benefit from government actions, such as the debt guarantee program.
• Give more power to the Federal Housing Administration and the Rural Housing Authority to modify loans.
• Expand access to the Hope for Homeowners Program.
• Increase the National Credit Union Administration’s borrowing authority.

We'll keep you posted - both here and on MoneyAisle.com - as this situation progresses.

MoneyAisle CD Laddering: How It Works

Did you know that MoneyAisle offers an innovative CD Laddering function to its registered users?

If you're looking to spread your deposits across several FDIC-insured accounts while still maximizing the return on your investment, you owe it to yourself and your finances to check it out.

Here's how it works:

1. Once you've signed in, build your ladder by filling in deposit amounts for each CD duration you'd like to include in your ladder.



2. Decide how you want to spread your deposits - you can either use the current FDIC limit of $250,000 per account (set to expire on December 31, 2009 - although I hear rumors the government is looking to expand these limits), or the traditional FDIC limit of $100,000 per institution.



3. Watch the FDIC-Member banks in the MoneyAisle network bid live for the different "rungs" of your CD ladder.



4. Review your rates and accept your ladder - you can exclude a bank, remove a particular "rung" after the fact, or go with all the great rates offered through MoneyAisle's laddering system.



To get started, register for a free account at MoneyAisle right now. Building a financial portfolio has never been easier.