Joining the ranks of holiday shopping and Black Friday, back-to-school shopping has become a ritual event in most homes as a way to kick off the new school year. The National Retail Federation anticipates back-to-school spending to grow to $55.1 billion this year. And while most students' lists include inexpensive, yet essential items like pencils, notebooks, and folders; a lot of shopping lists also include more costly items like new shoes, clothes and electronics. Many Families are delaying these purchases, however, large and small alike, in anticipation of a greater deal. According to USA Today, "62% of consumers say they held off until at least August to make that initial purchase." And more than half of consumers are waiting until just days before classes begin or, in a growing number of cases, the week after school starts to get the greatest deal.

Well, it's always deal time here at SmartyPig. Our long list of retailers like Macy's for clothes, Staples for supplies and Amazon.com and Wal-Mart for everything, can provide up to 12% cash back on your back-to-school supplies (or any supplies) when redeemed using a SmartyPig savings account. You can purchase a backpack, clothing or shoes at Gap, Kohl's, Land's End, Banana Republic, L.L. Bean and Old Navy. Or help your college student purchase a new laptop or dorm furniture with discounts at Best Buy and Overstock.com.

Best of all? You don't have to wait for classes to start to save at SmartyPig. We provide cash back and a high interest rate to take your money even further. No need to get schooled by bank fees, non-existent rewards and low-to-no interest on your savings, take advantage of our deals and keep your family well stocked any time of year.

Wishing you a great first day and, as always, best of luck with your goals!

Sarah Foss, SmartyPig Media Mad Woman
SFoss@SmartyPig.com

We 'played' a summer activity in finding our winners (randomized to the top 20 people):

Congrats to sr316@, stanley.fam@ and missylizzylucy!

Top 20: fmsimplicity, pdxtexan@, lexiquin, yogagirl, amcgee@, adnewcomb, prengleskp, nnauger.24@, marianne@, katelyn.yamamoto@, JaymeSquire, melissanazal@, alyfunk, KEN6@, emilyolson80, wol97@, zvm

Just a note: Those with @ after their names were submitted via Facebook.

The format:

1. After 15 minutes, we will be picking 20 random people with a number generator from the pool of correct answers.
2. We'll use an old favorite to help in selecting three gift card winners.
3. We'll post the process here on our blog, so everyone can follow along!

Make sure:

1. You're following us on Twitter or are a fan on Facebook
2. We'll ask the $100 question on Tuesday, August 31 at 2pm CST.
3. Answer the question correctly for your chance to win!
4. If you are answering via Facebook, you will need to email us the answer (email to be provided at contest time) within the 15 minute time frame.

Remember: if you don't already have a SmartyPig account, it's free to set one up! Winner must be in the US.

Good Luck!

Despite the odds of winning the lottery being approximately 120 million to one, Americans are spending more on it than movie tickets and music, some $25 billion annually. And the number is growing rapidly. Why? Desperate times call for desperate measures. Forget about one step at a time. People typically want the quick win, the fast buck. It's the type of thinking that got us into this economic mess to begin with: Flipping houses, living on plastic, going for broke - and often ending up there.

At SmartyPig we are of the opinion that there is no such thing as instant financial gratification in this day and age, and that desperation is not a strategy. To us, the safest bet out there is on you thinking about and treating money differently than you have before. Can you get rich in this economy without winning the lottery? Doubtful. But we can get you on the road to making the most money for your money. We offer a high interest rate on the money you save and cash back when it's time to spend it. It's as easy as 1-2-3.

Sadly enough, too many Americans are dreaming of getting rich quick in today's tough economy. But in all actuality, the only pot of gold almost every single one of us will likely every run across, is the one we create for ourselves. True it's raining out there. Hard. Very hard. And while some banks may offer you an umbrella in the form of no-to-low interest savings with ZERO rewards and fees to boot, SmartyPig wants to be a rainbow, helping you realize your goals and dreams. It's not the lottery, but it's a 100%, sure-fire way to earn the easiest money out there. With those odds, it should make betting on YOU the obvious choice.

Wishing you the best of luck with your goals!

Sarah Foss, SmartyPig Media Mad Woman
SFoss@smartypig.com

We all received yet another glaring reminder that personal savings should be at the top of our priority list when earlier this week the FED released its quarterly report on household debt. The numbers on foreclosures, consumer debt and bankruptcies listed in the report are downright frightening and should serve as a wake-up call to those who have not yet started to change the way they think about money. In quarter two, new bankruptcies rose over 34%, while $1.3 trillion of consumer debt is delinquent and $986 billion is seriously delinquent.

The personal saving rate has jumped recently, true, giving a slight indication that some of those in debt are trying to change their ways, trying to get out from under. However with this good news comes some really bad news: Interest rates remain near 0% and are having a huge affect on people actually trying to save. From the NY Times: "For consumers who are cutting debt and trying to save, it is dispiriting indeed that they generate so little on their money."

Except at SmartyPig.

With an industry leading APY and up to 12% cash back for people with saving goals, we effectively offer the opportunity for a double-digit yield. So while smart savers' actions go mostly unrewarded, we have partnered with a top bank and top merchants to give anyone who wants a break from this terrible economy, the most money for his or her money. Whether you're saving for socks and underwear so as to get cash back from a preferred retailer, an affordable wedding you'd like friends and family members to help with using our shared goals program, or holiday gifts without the burden of even more debt, we're here to help you get there smarter and faster than you'd ever think possible in this continued downturn.

We thank you for being a SmartyPig customer, and best of luck with your goals.

Sarah Foss

My Sundays are reserved for family - and the New York Times - if I'm lucky enough for the rest of my crew to go down for naps. Yesterday, when my wife came to find me after waking up, my five year old in tow, I handed her the Business section of the paper and pointed at the front page. "Read this," I said. The article, by Stephanie Rosenbloom, is titled, "But will it make you happy?" It is all about a populace slowly awakening to something that should be old hat: It's time to get back to basics when it comes to finances.

Your grandparents have probably always thought that you don't know the value of a buck. Your grandparents have always been right. They were a part of the cash-in-hand generation, paying cash for the stuff they wanted. My grandfather paid for his only house, every car and everything else he ever owned with cash. He wasn't well-to-do by a long shot. He was an ironworker who never had a credit card. When he bought something like a new TV it was an event.

"Before credit cards and cell phones enabled consumers to have almost anything they wanted at any time, the experience of shopping was richer," Wendy Liebmann of WSL Strategic Retail says in the story. "You saved for it, you anticipated it." Added Rosenbloom: "In other words, waiting for something and working hard to get it made it feel more valuable and more stimulating... In fact, scholars have found that anticipation increases happiness."

My grandfather was on to something. Although he probably would have waved his hand in dismissal or pointed at his head to indicate that it is simple common sense.

"We're moving from a conspicuous consumption - which is 'buy without regard' - to a calculated consumption," Marshal Cohen, an analyst, told Rosenbloom. What Mr. Cohen really means, however, is that we are "moving back" to it.

From coupons to cutting up credit cards to analyzing daily spending, this so-called new awareness is morphing into a movement that is actually no more complicated than the ceramic piggy bank my five year old adds change and the occasional dollar bill to. It is a concept that we've built our business around - this concept that my grandfather would have argued is no real concept at all: Save for the stuff you want.

Jon Gaskell, SmartyPig co-founder

As you may know, SmartyPig users have the option to securely connect their existing Twitter and/or Facebook account to goals that they have chosen to share with friends and family. When Twitter is connected to a shared SmartyPig goal, SmartyPig will automatically post to that Twitter account any time funds are added toward meeting that goal. The Facebook connect feature works similarly, posting to the Facebook user's wall every time funds are added toward meeting a goal that he or she has chosen to share.

Twitter

Facebook

The best part about this connectivity is that the posts and tweets happen automatically. So even if you are not logged in to your SmartyPig, Twitter or Facebook account, SmartyPig will continue to post tweets and wall posts on your behalf when funds have been added to your goal.

Even better, you now have the ability to designate the specific time at which you would like SmartyPig to post to your Twitter and/or Facebook account for your recurring scheduled contributions. Are your friends more active in the morning? Would you prefer to send information at night? The choice is yours! Share your dreams and aspirations with your social network. Chances are you'll get encouragement and possibly a little cash from friends or family members who want to help you on your way!

As always, good luck with your goals!

Mike Ferrari, SmartyPig co-founder
@mferrari

For the third straight month, Americans saved more money than they had the month before, taking the personal savings rate to 6.4% - its highest rate in more than one year. Smart consumers saved post-tax income of $726 billion in June. The savings rate is now about three times the 2.1 percent average for all of 2007, before the recession began.

And while consumer spending and income remain cloudy and gray, it's difficult not to be encouraged. People saving more and buying things with cash instead of credit would have saved us from the disastrous economic tsunami many believe we still remain in the midst of. From an AP report: "Higher savings restrain spending in the near term. But the extra money helps households get control of their bills and make purchases they can afford." Said Paul Dales, U.S. economist at Capital Economics. "It is of some comfort that households now appear to have something of a cushion that can be used to pay down debt or support spending."

At SmartyPig, we could not agree more. There are not only things you need but things you want, as well. Using cash to make those purchases instead of high-interest credit cards will keep you on the outside of the tsunami looking in - or least under an umbrella that pays you 2.15% APY* on your goals and cash bonuses of up to 12% when you are ready to use those dollars. Double digit yields in this downturn? That's a forecast worth paying attention to.

Thanks,

Mike Ferrari, SmartyPig co-founder
@mferrari

*Balances $0.00 - $50,000.00 earn 2.133% (2.15% APY). Balances above $50,000.00 earn 0.499% (0.50% APY). Rates may change at any time without prior notice.

Effective today, you can now specify whether you wish to receive standard or detailed emails from SmartyPig.

Select "Standard" and SmartyPig will send you a generic email alerting you to log in to your account to view the important information. Once logged in to your account, click on the "Messages" tab to view the unread message.

Select "Detailed" if you would like to receive the important information in the email itself. For all our current customers, "Detailed" is what you've been receiving from SmartyPig all along.

Hope you enjoy this added privacy feature. Stay tuned as we will be releasing more updates in the coming weeks.

Thank you!

Mike Ferrari, SmartyPig co-founder
@mferrari

We randomized the list for the top 20 and picked 3 winners by playing a summertime favorite:

Congrats to our winners: @alindeman (we like to say alin-de-man), @remodelsolution and taradelin@ (Facebook winner)

Thanks to everyone who played and good luck in next month's contest. Just so you know, here are the top 20: mbchilton, jake_ia, jtmccorkle@ (Facebook), bragdonh@ (Facebook), Tony_Leo, CaseyG2782, m_weber, carmen.contreras@ (facebook), EsterLinn, amyraelle, jcorley, soZealous, neilbode, mcschoon, beth.clevenger@ (Facebook), dvdzrus49, OUMicki

With the average American putting $900 on their credit cards last holiday season, and with credit card fees and interest charged to hard-working consumers continuing to sky rocket, it has never been a better time to set up your holiday gifts goal on SmartyPig. Not only will you start earning interest instead of paying it, using those smart saving dollars at our merchant partners will get you cash back of up to 12%! From Macy's to Amazon to American Airlines to Barnes & Noble, you save that $900 with us, and you will simply get more. Think of it as dollars and common sense.

We hear from customers all the time who have abused credit cards and are digging out from under while they try to turn their financial lives around. Some of them are among those who put last year's holidays on the card and are making monthly minimum payments. How long will it take them to pay off just that portion of their debt? According to some estimates, as long as six years. SIX YEARS!

So don't let black Friday cast a dark cloud on your finances. Start your SmartyPig holiday gifts goal today, ditch your high-interest credit cards and get paid to save and spend with SmartyPig - The Most Money For Your Money!

- The SmartyPig Team

The format:

1. After 15 minutes, we will be picking 20 random people with a number generator from the pool of correct answers.
2. We'll use an old favorite to help in selecting three gift card winners.
3. We'll post the process here on our blog, so everyone can follow along!

Make sure:

1. You're following us on Twitter or are a fan on Facebook
2. We'll ask the $100 question on Thursday, June 24 at 11am CST.
3. Answer the question correctly for your chance to win!
4. If you are answering via Facebook, you will need to email us the answer (email to be provided at contest time) within the 15 minute time frame.

Remember: if you don't already have a SmartyPig account, it's free to set one up! Winner must be in the US.

Good Luck!

This morning we announced in a press release our new strategic alliance with BBVA Compass, the 15th largest bank in the United States and the American arm of one of the biggest banks in the world, BBVA. Understanding that solid footing and a great reputation are the most important aspects of any financial services company in these challenging times, the decision to work with BBVA Compass was an easy one, as they provide both. Not only that, but BBVA can handle the scale of the considerable growth we're experiencing, while quickly giving us access to millions of customers who have yet to learn of SmartyPig, as well as the global markets we are planning to enter. Simply put: We could not be more excited.

On August 1, 2010, with your permission, SmartyPig and West Bank will securely transfer your customer data and funds on deposit in your SmartyPig savings account from West Bank, our current bank services provider, to BBVA Compass. In order to keep your SmartyPig account active and your savings goals current, you must log into your account and authorize this transfer of funds and the opening of a BBVA Compass savings account. Please note that your funds will remain FDIC insured at all times to the fullest extent provided by law. All things being equal, aside from authorizing your new BBVA Compass savings account, you'll likely never notice a difference… Oh, except for the simple fact that having a powerhouse like BBVA behind us will lead to a much better SmartyPig experience for you, as we begin to roll out some exciting new products and features over the next 90 days. All of which are designed to help you get the most money for your money.

So if you are an existing customer, what do you need to do?
Simply log into your account now, to authorize the transfer of funds in your West Bank savings account to your new BBVA Compass savings account. It will take fewer than 60 seconds.

What if I don't have a SmartyPig account but am thinking about opening one?
Not a problem. All new customers will be asked to authorize the transfer of funds from their West Bank savings account to their new BBVA Compass savings account during the registration process.

When we began to build SmartyPig some three years ago, saving was at an all-time low, living on credit was a way of life, and we were nearing the dawn of an economic meltdown. And while the waters are far from calm, individuals and families the world over understand better than ever that we now have to be wise with our money and we have to make it work for us harder than ever. With BBVA behind us, we can help spread the message far and wide about not just creating goals, but the true value that exists of sticking with and finally reaching those goals.

For more information, please visit the BBVA Compass site here:
http://www.bbvacompass.com/notice/smartypig/

Thanks for being a part of this terrific adventure. If I can ever be of personal assistance or you have any questions, please feel free to reach out. And as always, best of luck with your goals!

Sincerely,

Mike Ferrari, Co-Founder
mferrari@smartypig.com
@mferrari

****** June 9, 2010 - IMPORTANT UPDATE BELOW ******

Fellow SmartyPigers,

Since many of you have asked about the rationale and motivation on our move from West Bank to BBVA Compass, and in the spirit of transparency, let me provide some insight on the process we've followed.

First of all, we've known for some time that SmartyPig would outgrow West Bank and have spent the past six months looking for a new banking partner. How did we know that we needed a new banking partner when West Bank was doing a great job and was such a perfect banking partner? West Bank told us.

Let me try to explain what happened in lay-persons terms. When we began this venture with West Bank we (West Bank and SmartyPig) knew if we were successful, we would outgrow West Bank. From a risk management standpoint, it is not prudent for West Bank to have a significant portion of its deposit base from one source. When the SmartyPig related deposit base passed 10 percent of West Bank's deposits, we began discussing alternative banking alliances.

Our criteria for a new banking partner were pretty simple. First of all we needed a banking partner that had the size to accommodate SmartyPig deposits today and for the foreseeable future. Second, we wanted to choose a partner with a healthy balance sheet. Third we looked for synergy - a bank that embraced innovation and would welcome SmartyPig as a partner.

So for much of the next four months (and 62,000 miles in the air), we spent time visiting executives at almost every large U.S. bank. Without disclosing details, I can assure you that the range of discussions we had was amazing. Some banks understood SmartyPig, some didn't. Some understood innovation and some wouldn't recognize innovation if it bit them. It was quite an experience, to say the least.

During this time, West Bank commented in it's quarterly reports that due to the success and expected growth of SmartyPig, SmartyPig was working to find another banking alliance by the end of 2010.

While there were a number of contenders to become our banking partner, in the end there was one clear choice that met and exceeded all of our criteria - BBVA Compass. They were our first choice and we really hoped we could consummate a deal with them.

BBVA Compass is a U.S. based bank headquartered in Birmingham, Alabama and have been in continuous operation since 1964. They have approximate 65 times the deposits of West Bank and have a parent company headquartered in Madrid, Spain with deposits of over $765B in deposits and 48M clients. Even with all of the turmoil in the U.S. and Spanish markets, they have never received any bailout from any government, and operate with a strong balance sheet. For those of you still concerned about the security of your deposits, all customer funds are FDIC insured at BBVA Compass the same as they were at West Bank.

Innovation is a hallmark of BBVA Compass, both in the U.S. and worldwide. I've been to their headquarters in Birmingham and Madrid, and am extremely impressed with their focus on innovation. In all of our discussions they embraced the concept of SmartyPig and have been as supportive as any potential partner could of our new thoughts and ideas. No, we're not content to sit back and let SmartyPig stay as is: we've got lots of new ideas, features, and functions that we'll be rolling out this year - stay tuned.

With our decision made, we just spent the past few months formalizing our relationship and making final plans to transition our deposits from West Bank to BBVA Compass. On Monday we formally announced the relationship and have received very positive press. SmartyPig customers have until July 19th to opt-in to the transfer of funds. At that point anyone who hasn't opted in will have all funds plus interest returned to the bank where your funds originated. If you're not sure or want more time to decide - choose no (effectively opting out of the transfer) and you'll have full access to your account. At such time as you're comfortable with the transfer, login and change your option before July 19th.

This transition (besides the opt-in process) will be transparent to our customers. The only change will really just be where the deposits sit.

My only sadness in this post is that we're leaving a great partner - West Bank. They've been there with us from the very beginning from the time that Mike and Jon had the vision of SmartyPig sketched out on a few sheets of paper. They've incubated us, supported us, guided us, and have been great partners and friends.

So as we move forward I welcome your comments, challenges and requests for more information. As always my contact info is public - email: bob@smartypig.com and cell: 512-636-5200.

Best,
Bob Weinschenk, CEO
bob@smartypig.com

There are many ways to save money year-round. But summer, with so many outdoor activities and reduced costs to maintain your home, seems to be the optimum time to get in the mindset of living in a more fiscally fit manner. By using SmartyPig you can get that summer vacation paid for without the worry of credit card debt; same for if you're getting married - save up, spend wisely. What about all the other days of summer, though?

We've found some tips at ABC News and Quick & Simple to help you not just stay on the path toward reaching your goals, but also to make summer a little less costly while being just as much fun.

How do you save money over the summer? We'd love to hear from you!

Mike Ferrari, SmartyPig co-founder

Here are the winners! If you see your name listed below, please send an email to contests@smartypig.com with your twitter username, first and last name and shipping address to where we can send you your $25 gift card.

1. Splendor: @SmartyPig I save by biking to work.
2. dsmisnotboring: Well, I use @smartypig to save $$.
3. cahnimeals: @smartypig I save at smarty pig !!!
4. dopeymouse05: @smartypig I save by using coupons!
5. kmevaul: @smartypig coupon clipping!
6. ggadventures: @SmartyPig I work at the local running store on the weekends to get reduced costs on my favorite hobby!
7. twigglesMG: @smartypig I save at least 5% of my earnings each week.
8. amberweinberg: @SmartyPig I use smartypig to put 20% of freelance pay I get!
9. Raggys: @SmartyPig I never eat out w/o using a restaurant.com coupon
10. rxt403: @smartypig I always try to save $5 bills that I come across for a stash of emergency cash! Thanks!
11. rbittmann: @SmartyPig I bring my lunch to work!
12. brettlhart: @SmartyPig eat out less and bring a lunch
13. amandamorrow: @SmartyPig Coupons!!
14. grantkimm: @SmartyPig I eat at my desk to save $
15. XineSoundclash: @smartypig I get my textbooks from Amazon for wayyyy cheaper!
16. dyanysus1116: @SmartyPig put my change in an empty coffee tin then put it in savings. it adds up!
17. KateLWilson: @SmartyPig I pay myself first! Money comes out on the 2nd and 15th of every month into my savings acct and IRA!
18. CaseyG2782: @smartypig saving for vacation!!!
19. jmpedron: @smartpig i save using smartypig
20. lisaboldini: @smartypig I turn down the heat!
    

Thanks to everyone who played today! Never know when the next one will be!

Mike Ferrari, co-founder
@mferrari

We had about 180 answers, randomized to the top 20 and picked 3 winners:

Congrats to our winners: @natalietejeda, @jojoG522, @jackjohnson41

Thanks to everyone who played and good luck in next month's contest. Just so you know, here are the top 20: artificialrobot, wmharp, JenniferRyther, B_PhotoStudio, mikesum32, havana@ (Facebook), Juan_Medina@ (Facebook), AngelaDRC, dcmassar@ (Facebook), XineSoundclas, AdaliaDavis, RoboJenny, lvmuir@ (Facebook), j_hollender, jmccarthy300, parterburn, tanyahkeith@ (Facebook)

The format:

1. After 15 minutes, we will be picking 20 random people with a number generator from the pool of correct answers.
2. We'll use an old favorite to help in selecting three gift card winners.
3. We'll post the process here on our blog, so everyone can follow along!

Make sure:

1. You're following us on Twitter or are a fan on Facebook
2. We'll ask the $100 question on Thursday, April 29 at 11am CST.
3. Answer the question correctly for your chance to win!
4. If you are answering via Facebook, you will need to email us the answer (email to be provided at contest time) within the 15 minute time frame.

Remember: if you don't already have a SmartyPig account, it's free to set one up! Winner must be in the US.

Good Luck!

On May 19, 2010, the APY on balances* of less than $50,000 will go up to 2.15%, while balances* of $50,000 or more will see a rate decrease to 0.50% APY. This tiered structure will greatly benefit more than 95% of our customers who are working hard towards their goals and using our redemption program to earn even more cash when they reach those goals. While a small portion of our users will see a rate decrease based on their limited use of the service, we feel strongly that our mission will greatly benefit our core customers who are saving for various milestones in their everyday lives.

See, when we recently went over some ideas with a few of our customers, what we overwhelmingly heard was this: Help the people who use SmartyPig the way it was designed - everyday people with everyday needs and wants - by giving them a higher rate, more cash incentives and the royal treatment usually reserved for high-balance customers at big banks who typically crush young, working people with fees and gimmicks while lending a deaf ear.

SmartyPig would be nothing without these folks. We applaud them for wanting to change for the better and having the courage as well as the resolve to make it happen. We are going to work as hard as you to help you get to where you want to go and make sure you stay there.

Please let me know at any time how we can be of service or how we can make an even better SmartyPig. Your continued support is greatly appreciated and, as always, best of luck with your goals!

For additional information, please click here to read the complete press release.

Oh and one more thing: The only time we ever make money is when our customers make money. With our decision to focus on our goal-oriented customers, we hope to help you earn even more.

Bob Weinschenk, CEO
bob@smartypig.com

*Balances: For purposes of calculating balances for determination of the rate tier that applies, total balances of all goals within your SmartyPig profile will be aggregated.

**** UPDATE by Bob Weinschenk - April 19, 2010: 10:20 pm CST ****

I'd like to thank everyone who took the time to post on our blog. All comments are appreciated and help us create a better product.

To clarify, there was no intent to spin a bad story (the rate decrease for deposits over $50K) into a positive (the rate increase for deposits under $50K). We made a change that positively affected 95+% of our customers and stated the truth. To the 5% of our customers who could experience a rate decrease (if deposits are not brought below $50K) in no way shape or form was there an intention to miscommunicate the facts. Also, we truly hope to keep your business. We are just unable to pay above market interest rates for balances above $50K. We hope you will maintain a balance of under $50K, enjoy our industry leading rates, and further use our vendor redemption programs to receive cash boosts of up to 12%.

I've received a number of requests for the rationale behind our decision today and felt it appropriate to address it further here:

We live in a multi-tiered interest rate world. The base of this tier is called Fed Funds. This is the interest rate at which private depository institutions (mostly banks) lend balances to other depository institutions, usually overnight. Another way to look at this - it's the interest rate banks charge each other for loans. Today the Fed Funds rate sits at 25 basis points (bps) or 0.25%. Consider this to be the base interest rate. SmartyPig lives just above this rate (We are not a CD, for example; our customers can take their money out at any time without penalty) and hence our banking partners are limited by state and federal regulation as to how these funds can be invested or loaned out. So here's the math - we were paying 2.01% and could get between 0.5% and 0.75% for our deposits. Any difference comes at a cost.

So how does SmartyPig make money? I can assure you that SmartyPig has never made any money on our customers' deposits. We make our money through our redemption program. Our customers get cash back boosts of up to 12% and we get a marketing fee for the transaction - it's that simple. We can use some of this marketing fee to boost interest rate for our customers, which is what we've chosen to do on an across the board basis up until now.

We've learned two things after the past 24 months of operation. First, 95% of our customers have deposits below $35K and second these customers tend to use our redemption program. These two facts were the reason behind the decision we made. Like you, I have a goal, as well - mine is to grow SmartyPig and provide our core customers with the best product possible. It wouldn't be possible without this change.

Thanks,
Bob
bob@smartypig.com

Rachel Naugle of the Republic of Austin told us pointblank that SmartyPig is a life changer. As you can watch in the video below, where Rachel sits down with our CEO, Bob Wienschenk and me, Rachel has been a life-long slave to the plastic and a victim of the trappings of having a "buy now, pay later" mindset.

No longer!

Writes Rachel in her blog: "(The SmartyPig guys) really sold me on their concept of being able to set up a savings goal that I could share with my family and friends, allowing them to track my progress, cheer me on and contribute. With consumer interests their top priority, they want to encourage good spending and saving habits. My heart just melted a little bit…" Why? Because if Rachel and her husband want to take their much-deserved 10-year anniversary trip without paying for it the next 10 years, they need to start saving now.

Rachel created a SmartyPig account, set up the goal, and began making small transfers from her checking account into her Smarty Pig account once every two weeks, and then more on payday when she has access to a bit more. "I think about how excited my husband and I will be next year, relaxing on our anniversary, enjoying each others' company, and knowing that the only thing waiting for us when we get back is our kids - and not a credit card bill. That will be such a GREAT feeling," she goes on. And then to make sure she stays true to herself and her goal, she does away with her cards once and for all.

Are you like Rachel and in need of some scissors to keep you on the right path of smart saving and spending? We'd love to hear your story and see your video today!

Thanks,
Mike Ferrari, SmartyPig co-founder
@mferrari

For the second contest of the month, we asked 'When does interest on a SmartyPig account begin to accrue?' The answer is: Interest begins to accrue once the funds have been received by SmartyPig and have posted to your account. This means that SmartyPig has collected the funds and West Bank has full use of said funds. For your security, funds may take up to 2-business banking days to post to your account.

Of course, we accepted all sorts of variations of that answer for almost 200 correct answers into the pool! We randomized our list to 16 and picked the 4 $100 SmartyPig gift card winners:

You'll know the top 16 by watching the video! Thank you to everyone for playing and good luck next month!

Congrats to our winners: @chriswoods85, @kidzmatter2me, @AlixLogan, @QuestionXisting!

To kick things off for the first contest this month, we asked 'What was the title of the session SmartyPig participated in at SXSW? The answer - Banking 2.0: Financial Services Driven by People & Emerging Technologies (we also accepted the short version - Banking 2.0).

Between Twitter and Facebook, we had over 150 players, randomized our list to 16 and picked the 4 $100 SmartyPig gift card winners:

You'll know the top 16 by watching the video! Thank you to everyone for playing and good luck in the contest on March 30!

Congrats to our winners: @tcita, @hangontomato, jimpryde@ (Facebook winner) and @markevaul!

SmartyPig will be giving away not just three, but FOUR $100 gift cards through our monthly Twitter contest, TWICE:

1. Thursday, March 18 at 11am CST. We will tweet a question and give our followers 15 minutes to reply for a chance to win.

2. Tuesday, March 30 at 11am CST. Same format as above!

The format:

1. After 15 minutes, we will be picking 16 random people with a number generator from the pool of correct answers.
2. We'll use an old favorite to help in selecting three gift card winners.
3. We'll post the process here on our blog, so everyone can follow along!

Make sure:

1. You're following us on Twitter or are a fan on Facebook.
   
2. We'll ask the $100 question on Thursday, March 18 AND Tuesday, March 30 at 11am CST.
3. Answer the question correctly for your chance to win!
4. If you are answering via Facebook, you will need to email us the answer (email to be provided at contest time) within the 15 minute time frame.

Remember: if you don't already have a SmartyPig account, it's free to set one up! Winner must be in the US.

Good Luck!

Guest Post from our friend Rob Garcia, Director of Product Strategy at Lending Club.

SXSW Interactive has quickly become the conference where attendees and presenters explore the latest trends, technologies and products that are changing how we interact, communicate and transact.

This year, Lending Club will sit with SmartyPig, Mint and CreditKarma to talk money and innovation in the banking industry. Jennifer Openshaw, CEO of Family Financial Network will moderate a conversation that promises to be interesting and thought provoking.

In the midst of a financial crisis, people are compelled to save, budget and lower their dependency on traditional financial services. Stock picking communities, person-to-person lending, personal finance management and even credit score management tools, have emerged to serve the changing needs of customers exclusively served by traditional banks and credit unions.

In this panel, we will discuss key trends, emerging technologies, and financial products that are changing the way people interact with the banking and financial services industries.

Banking 2.0: Financial Services Driven by People & Emerging Technologies

• Saturday March 13 at 12:30pm at the Hilton Hotel, downtown Austin, Room G
• Moderated by Jennifer Openshaw, CEO of Family Financial Network
• Attend >>

Panelists:

• Rob Garcia, Sr Director Product Strategy, LendingClub.com
• Aaron Forth, VP of Product, Mint.com
• Kenneth Lin, CEO, CreditKarma.com
• Bob Weinschenk, CEO, SmartyPig.com

Can't attend in person? Don't miss out on this stellar line-up! Follow @SXSWfinance for live updates and questions to the panelists during the panel.

The following was a guest post by our friend Rob Garcia, Director of Product Strategy at Lending Club.

The new videos do a great job of highlighting the many unique benefits of SmartyPig, like how to create a new goal, share your goal and redeem your goal. The videos are also located in the "Features and Video Tutorials" page and on our new YouTube Channel.

We also included a new field in the goal creation process, that if you choose to share your goal with friends and family, you can include a goal description as shown below. For more information on how to share a goal on SmartyPig, click here.

And here is how it will look on your sharing page. Remember, friends can find your sharing page by entering your email address on the "Find Friends" page located here.

Thanks and don't hesitate to reach out to us anytime.
Mike Ferrari, SmartyPig co-founder
@mferrari

In this hilarious piece on how the industry works, comedian Jon Stewart explains why we at SmartyPig feel the way we do about young people getting on the wrong track with plastic. Writes Gawker TV: "Stewart first explained that the problem with American consumers is that they not only desire a Champagne lifestyle on a Busch Light budget, but will take any opportunity to act on that appetite - even when painfully aware of the consequences of doing so. If you let them, they will spend, whether they have the money or not."

SmartyPig's stance on fiscal responsibility and the overall evil tactics used by big banks in the form of credit cards has not changed since day one. And we truly feel that Americans are waking up. In a recent blog, we shared some encouraging numbers regarding younger people turning away from credit cards, saving up first, using products that won't get them in a near-impossible hole to dig out of. Building up good credit is certainly a must at some point. But getting paid a great rate to save and then paid even more to spend that money when you've reached your goal is the best way to get started as you begin your financial journey.

Mike Ferrari, SmartyPig co-founder
@mferrari