BankVibe reader Patrick just gave us the heads up on a very lucrative savings account rate through SmartyPig.com. They are offering all potential customers an FDIC insured 3.05% APY savings account.
If you decide to invest money with Smarty Pig you may want to note that your money will be held at the West Bank of Iowa. Anyone in the US is allowed to sign up for Smarty Pig’s savings account.
The Smarty Pig savings account is particularly unique in two ways. First, is their unbelievable savings rate (3.05% APY) which beats the national average by roughly 50%. The second is that the SP savings account is specifically designed to help you save for something in particular (a trip/vacation, flat screen TV, anniversary, etc). Along with a predefined savings purpose is also the ability to make your savings account public to anyone you deem worthy. For example, you may adjust the settings of this account so that your grandmother, brother, or mother could view the account and make small deposits within it to help you achieve your particular savings goal.
Smarty Pig Savings Account details:
- no minimum balance required
- FDIC insured
- Interest rate is subject to change without notice
- Interest rate effective as of April 7, 2009
Since Smarty Pig has entered the online savings game, they have altered their features and fees slightly – adjusting to consumer feedback. Their fees were a little steep during their first few months but they have since dropped substantially after consumer backlash flared up on the web. We like the fact that they are a goal-based savings account with an attractive rate (when compared to the national average).
Interest rates in general are on the decline, so its refreshing to see a savings account with an attractive rate. However, we don’t expect this to be the case for much longer. The FED is continuing to lower key rates which means lower annual percentage yields on both variable and fixed rate savings accounts. If you can, you may want to consider locking in a 5 year deposit while interest rates are still respectable for those terms.