Licuro creates 'E-bay for savers'
An online auction house where banks and building societies can bid to look after people's savings has been launched by licuro.com.
Being hailed as "E-bay for savers" the new interest rate auction house is basically a market place for savers, be they individuals, companies or organisations.
Licuro works by allowing registered users to put their savings up for auction. They state how much they want to deposit and for how long.
Then banks and building societies bid against each other by offering time deposits at their best interest rates.
According to Andy Golding, chief executive of Saffron Building Society, the website provides a fresh way for financial firms to boost funding.
He said: "The current economic conditions mean the environment for banks and building societies to raise funding is extremely competitive, whether from one another or through capital markets.
"It therefore makes sense for us all to take advantage of alternative sources, in this case it is direct access to savers' fund via licuro."
It costs £5.75 to register and savers can expect to receive competing bids from banks and building societies, registered by the Financial Services Authority (FSA), within two hours of registering for 24 hours.
It is free to try, however, until September 1st.
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