Grant Street Group Develops CD Auction Website For Zions DirectFebruary 27, 2007
Pittsburgh, PA (February 27, 2007) — Zions Direct, member NASD, a non-banking subsidiary of Zions First National Bank, announced today that it has launched a new online auction platform for FDIC-insured Certificates of Deposit (CDs). Similar to popular Internet auction methods, the CD auctions available at www.auctions.zionsdirect.commay enable individual investors to receive higher yields on their CDs. The software for the auction was developed by Grant Street Group.
Auctions at www.auctions.zionsdirect.com empower investors to set the yield on the CD for which they are bidding. There are no fees, and the only requirement to participate in an auction is to register to bid, a process that is easily completed in a few minutes. Zions Direct CD auctions allow private investors to obtain yields previously available only to large institutional investors. CDs of varying maturities are available in amounts as small as $1,000.
“Bidding on CDs through an auction process is the latest and, we believe, most innovative method for pricing these investment products,” said W. David Hemingway, executive vice president.” The phenomenal success of Internet auctions leads us to believe that the market is ready to accept a similar model for financial products.”
Similar to the auctions held by the U.S. Treasury, CD auctions use a modified version of the Dutch auction method. The bidding process is open, enabling investors to check the status of their bids throughout the auction. Current auctions, as well as the results of previous auctions, can be accessed at www.auctions.zionsdirect.com.
Zions First National Bank is a subsidiary of Zions Bancorporation , one of the nation’s premier financial services companies, consisting of a collection of great banks in select high-growth markets. Zions operates its banking businesses under local management teams and community identities through over 500 offices and 600 ATMs in 10 Western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The company is a national leader in Small Business Administration lending and public finance advisory services. In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to subsidiary banks can be accessed at www.zionsbancorporation.com.