SmartyPig Review: Unique approach to savings with great rate!
The SmartyPig online savings account is offered in partnership with West Bank and comes with one of the best interest rates on the market. We were surprised to hear that on May 19, 2010, the APY on total goal balances of less than $50,000 will go up to 2.15% (the current APY is 2.01%). This positive interest rate adjustment goes against current money market and online savings rate trends. The average savings rate provided to money market accounts sits at a meager 0.90% APY and has been relentlessly dropping over the course of the last year and a half – which makes SmartyPig’s recent rate rise a stand out move.
SmartyPig’s Unique Approach to Savings:
What makes SmartyPig’s savings account unique is it’s design. It is made specifically to help consumers reach financial goals and avoid credit card debt by saving for big items. In other words, the creators of SmartyPig thought that consumers wanted a way to save cash for large purchases they may have previously put on a credit card, such as a home makeovers, large vacations, holiday gifts, etc. – and you do this by setting up goals. Tell SmartyPig what you want and use their calculators to figure out how much you will need to set aside each month before you will have enough cash for the purchase. Friends and family can also contribute to your goals by depositing money into your account.
SmartyPig’s Phenomenal Interest Rate:
If you’ve compared interest rates lately you’ll know that this rate more than doubles the current national average for similar accounts. The creators of SmartyPig claim they can provide such high savings rates to their customers because most customers will keep their savings stocked away for longer periods of times (to complete their financial goals). Plus, just like any traditional online bank your money is federally insured by the FDIC through their partnership with West Bank.
Positive Features of this Account:
- Extremely high interest rate
- Help save for specific purchases while avoiding the use of credit cards
- Social networking features for encouragement and participation of family and friends
- Bonus percentage at retail partners!
- fund via ACH transfer
- FDIC insured
August 5th, 2011 at 9:21 am
Depending on what you’re saving for, SmartyPig may be a better deal than you think from looking at just the rate, but that
rate only applies up to $50,000.