The SmartyPig Blog

Announcing a Change in APY

Beginning Friday, Dec. 9, 2011, we will be reducing our APY to .70%. Interest rates on deposit accounts at many banks have been declining over the past year due to poor market conditions. Likewise, the rate on your SmartyPig savings account is being reduced as a result of these same economic conditions. This rate change will affect savings accounts with $50,000 or less in aggregate balances. Account balances of more than $50,000 will remain at .50% APY.

SmartyPig remains a strong competitor in the marketplace due to our strong interest rate, no fees, and cash-back options of up to 11% from your favorite retail and travel companies. These incentives, as always, allow you to get the most money for your money when you use SmartyPig, where we help reverse the credit card mindset of “buy now, pay later.”

We welcome your feedback, and we appreciate you saving with SmartyPig.

The SmartyPig team

  • Stephanie Wickham

    Being a banker I understand the need to reduce rates, but given your online only model, I can’t imagine you would have to lower your rates to 0.70% to stay competitive. The small community bank I work for offers that type of rate and we have bricks and mortar! Looks like trying to appease BBVA is starting to hurt your reputation. The more business you lose, the lower your net interest income, and from the sounds of it it doesn’t look like many of these customers will come back once you raise rates again. I will be closing out my goal soon as well.

  • optimusprimerate

    I’m afraid you are incorrect. The rates you mention are not interest rates but the APYs or Annual Percentage Yields. The APY shows you what your return would be on an annual basis – so this takes into account the difference in compounding.

  • I’m Done

    Well just pulled out 30K after a 3 yr relationship with SmartyPig- at one time the interest rate held steady for well over a year ( while other banks were cutting) but
    once SP got bought out the rates just when downhill at record speed- really a very obvious change once BBVA took over- well, now it’s THEIR turn to notice
    the huge number of customers and dollars they’re losing…….see ya…..

  • Chris

    I would like to thank all the people at SmartyPig for all the interest that you have paid me. When I came here like others I was attracted by the higher interest rate, but also saw that for the right person both the person and SmartyPig could make out good. That person is a person that wants to make goals to save to buy something, and hopefully that something could be purchased by one of the give cards SmartyPig sells, making it a win win situation. I tried to fit into the model, but what I really found is that my wife and I are really big savers that had no real big things to save up to buy, and the small things that we went to buy were to spontaneous really make use of the gift card system.

    This of course was not a good situation for SmartyPig, which was maintaining my account for basically nothing, and of course for the bank backing this it wasn’t that good because they could get customers without offering a higher interest rate. You know this because if you went to the bank directly they wouldn’t give you that rate.

    I find it almost comical that that people are complaining here that their free ride is coming to an end instead seeing that in truth they have been given a gift, and that in fact they are bad customers for SmartyPig. They make SmartyPig no money, and for some reason in this day and age people think that should be OK for a business.

    For the people that are really using the system they way it was intended, as in saving to buy something, or to change your mind set about pulling out a credit card instead of saving for it, SmartyPig remains a great service. For those that think of it as their savings account well it is good that you are moving on.

    I too will be moving on, but only because I have found that I’m not really a good fit for the service that SmartyPig provides.

    Thanks again and good luck,

    • Visi

      What a weird posting. SmartyPig has to lower their rates because customers are making them no money? Yet, ING, Ally, and others can offer higher interest rates than SmartyPig and make money? Your rationale isn’t sound. You too have suggested that you’re moving on because you’re ‘not a good fit’ for the service. Baffling….

  • Dief101

    Adios. Just took my 40k elsewhere

  • Anne

    Yep, just as I predicted, another “come-on rate”. ING might not have the highest rate all of the time, but they are consistently competitive. My guess is, Smarty Pig will never be competitive again. My money is going elsewhere.

  • Dvonn3479

    You need to drop the “One of the most competitive interest rates in the country” comment — it is not true, and by keeping it on your home page makes you look like a liar. I was very excited when I opened up a SmartyPig account, but I find the hype is just that. I read your past blogs you posted when you were raising rates, and about how much you cared for the customers. But now I see your comments ring hollow, and you offer noting special to me. There are many banks out there offering sub-accounts with better rates. I thought I found something special here, and maybe you were special once upon a time, but your latest move makes you moderately irrelevant. I am leaving you for Alliant Credit Union, who offers the same service, but at a much better rate. It is like you are the Netflix of online savings banks — not somebody you want to be compared to right now!

  • Hi

    I am going to try Nationwide Bank. I am moving all of my money into their .95% Money Market. They also have CDs with various rates that look good (12m 1.05%, 18m 1.10%, etc.).

    I wish I could have stayed here as I really like the concept!

    Thanks for allowing me to make good money on you these past couple years!!

  • Delrad36

    “Competitive”, not any more. Used to be, yes, but no more. As soon that PIG moved to that Spanish bank BB (whatever) I moved my money and opened a reward checking acct. with my credit union. I get 3.01%, no fees for nothing (incl. no ATM fees), all I’ve to do is 19 debit transactions with my debit card they gave me (free) with the acct., accept an e statement, and one ACH in or out each month.
    Wish I moved my money sooner.

  • Delrad36

    “Competitive”, not any more. Used to be, yes, but no more. As soon that PIG moved to that Spanish bank BB (whatever) I moved my money and opened a reward checking acct. with my credit union. I get 3.01%, no fees for nothing (incl. no ATM fees), all I’ve to do is 19 debit transactions with my debit card they gave me (free) with the acct., accept an e statement, and one ACH in or out each month.
    Wish I moved my money sooner.

  • Dana Seilhan

    For the record, I closed my goal early because I needed the money elsewhere, not because I have anything against SmartyPig. I just wanted to offer a counterpoint comment to all the whining below me. I’m tired of people who do not understand what a savings account is for. SAVINGS ACCOUNTS *ARE NOT* INVESTMENT VEHICLES, PEOPLE! They are exactly what the name implies. They are a place to SAVE your money. If you want a fabulous return on your money, SmartyPig is NOT the place to put it. Just because YOU are too lazy to learn how mutual funds work (yeah, like they don’t sometimes tank too) doesn’t make it SP’s fault that you’re not happy with their interest rate.

    Sorry. But the persistent mythology thing drives me nuts. My ex got on my case years ago because I hadn’t paid off my credit card but was putting money away in savings. Well, guess who had money set aside in case the water heater blew up or the car needed replacing? You can’t rescue everything with a credit card and you shouldn’t try. Just another example of the ignorance we have to wade through to get a handle on our finances.

    • hobbyman

      Thank you for that comment.

      I’m keeping my money here because it has been the best idea I’ve seen to help me put away money for something.

      Before, I was saving nothing. Now in just a few short months I’ve gotten up to almost $1300 in Smarty Pig.

      The whole idea of “set it and forget it” works perfectly for this and for me.

  • Vermaak

    Closed my account and moved money to UFB Direct with 1.3%. Adios

  • Kristina Leist

    ING is .85% and Sally Mae is at 1%. I don’t use the gift cards, because I mostly save for yearly bills and savings. Guess I’m another one that would probably be better off switching.

  • marie

    joined two years ago and loved the goal concept. the high interest rate made the extra hoops you had to jump through to withdrawal money bearable. not so much. taking my 28k and heading to amex

  • Jsmark11

    I didn’t get such a disclaimer when I signed up at 1.70 and was reduced to 1.10 within a month (June/July 2011).

  • Smartypig

    Please get in touch with our support team at They can help cover the details with you.