Setting interest rates via eBay

Thanks to this post on John Battelle’s Searchblog, I just learned that Washington Mutual is using eBay auctions to set interest rates for CDs (certificate of deposit accounts).

_In a promotion beginning today, the bank is using eBay to auction interest rates for its certificate of deposit accounts. But instead of posting a low rate and letting consumers bid them higher, Washington Mutual will offer the CDs at a relatively high interest rate, which eBay members will bid down. …. Aside from being a radical form of banking, the promotion is the latest in a series of innovative marketing deals to come out of eBay’s new Strategic Partnerships Unit, which also developed such surprising stunts as Seven-Up’s “Liquid Loot” and Hasbro’s “Jedi Knights” promotions._

The full article can be found here. Very cool.