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The SmartyPig Blog

September 2, 2010 • Posted by Bob Weinschenk

Here’s Why Your Interest Rate Is Going Down

As you may know, interest rates on deposit accounts at many banks have been declining over the past several months due to poor market conditions. Likewise, the rate on your SmartyPig savings account is being reduced as a result of these same economic conditions. Effective Tuesday, Sept. 7, 2010, the interest rate paid on SmartyPig savings accounts with $50,000 or less in aggregate balances will decrease to 1.75% APY (balances of more than $50,000 will remain at .50% APY). As you can see by the list below, interest rates on SmartyPig savings accounts will continue to be among the best in the market. And with our cash back offering of up to 14% with top merchants, you always have the opportunity to get the most for your money when you use SmartyPig.

SmartyPig: Interest Rate Chart
Source: Bankrate.com, USA Today, Consumerism Commentary

We understand that a rate reduction can be unpopular. But we also understand that with many banks introducing creative new fees, low-to-no interest rates on savings, high interest rates on credit card debt and scant rewards for your spending dollars, the SmartyPig savings account beats them all hands down. We all have to tighten our belts during these difficult financial times. We all need to watch our pennies and get back to the basics. Cutting back is a big part of “getting back,” after all, and we thank you for continuing to reach for your goals with us.

Thank you,
Bob Weinschenk, CEO
bob@smartypig.com

  • http://www.debtkid.com Debt Kid

    Well, that’s too bad…at least the rate is still better than my traditional bank by a long shot.

  • Joseph Dickinson

    That’s a shame, but you’re an online bank. You dont have local fees you have to pay. Im confused on why the Interest Rate dec. has to be solely on economic times.

  • Jerry

    ah….Time to move my money to some short term cds with ally or ing

  • Decidedly Nameless

    I think SmartyPig still offers a competitive rate not to mention the additional incentives on retail gift cards! Kudos to SmartyPig for setting up this wonderful program and rewarding its customers unlike other traditional banks.

  • Donna

    Why are accounts with balances greater than $50,000 paying less than accounts with balances below $50,000?

  • Robert

    This is very disappointing. I feel that this has to be somewhat related to the move to BBVA Compass, which is an institution I used in the past and hated.

  • JD

    Sad, but unsurprising. Defying the market to benefit ones’ customers is a noble thing to do; but probably not sustainable. It was just a matter of when…

    To those of you who joined recently, I don’t think the 2.15% was just a “lure”. The rate drop will affect everyone (except those with more than $50k); not just new depositors. Short of banning any new accounts from opening in the few months before an interest rate cut, someone was always going to have to suffer a rate cut right after joining.

    It’s not just the economy though… Unfortunately for us, savings account rates are anchored not by Mr. Market, but by the Federal Reserve. The winds of power and influence blow only one way in Washington: towards borrowers, who of course benefit from a zero interest rate policy. I’m very pessimistic about the prospects for interest rate increases, even if the economy does improve.

  • Sargon Chalabi

    No more so Smarty eh Pig?! AmericanetBank still pay 2% http://americanetbank.com/.
    I’ll be taking my business there soon.

  • Kelsey Horner

    That’s terrible. I just joined a little over a month ago. Wish I had found this earlier to take advantage of the higher rate. Oh well.

  • Brian

    Jerry – I just closed my Ally account and am moving to smartypig. I can’t see a short term cd that makes 1.75%.

  • J

    C’mon guys, it’s still a much better rate than anywhere else to keep the liquidity. Thanks for being here and beating out the other online options! I’m yours for life.

  • Ashwani

    I agree. Why to dec rate? Ita inline bank with many advantages over other things like minimal paperwork, no branches, min work force. Still confusing why go down on rate

  • Beth D.

    *sigh* I just had a sinking suspicion when I read the disclosures from BBVA Compass that rates were going down (and staying down). This really puts a kink in my plans. It’s not like it’s a tiny decrease either!

  • J

    I went to Sargon Chalabi’s link, for AmericaNet Bank. Here’s what they offer:

    Rewards Checking: 4.00% APY for first $10k, 1.00% afterwards. No minimum balance. Requires 10 check card transactions per month and receiving statements electronically. Failure to meet requirements results in interest rate cut to 0.25%.

    Money Market: 2.00% APY for first $35k, 1.00% afterwards. 6 free withdrawals per month, with a $5 fee for each withdrawal after that.

    Both appear to have no monthly fee or minimum balance. Both come with a free check card. Interest looks to be calculated and compounded monthly. The parent bank, All America Bank, is listed on the FDIC website.

    Thank you Sargon Chalabi. Anyone care to share other names?

  • DJ

    It is a shame to see it going down. I’m not sure how its affected by the current market conditions but based on this statement I will be watching to see if rates go back up as things improve. It will be a good are to check since the merger. We’ll get to see what Smarty Pig will be.

  • James

    I’m very disappointed. I will consider other options for my savings.

  • Sue B

    Not happy with the interest rate decrease. I’m sure the friends I recommended Smartypig as a savings account won’t be happy either. Going looking for a higher rate and if found, will be transferring.

  • MEW

    The reduction was inevitable with the Fed Reserve Bank forced to try to get this economy out of the ditch.

  • Nicole

    Dang, I just joined a month ago. I respect that SP’s rates are still among the highest but why is that when Smartypig makes a move like this they fall back on boasting about being higher than the competition, so I guess they can feel better about lowering rates b/c at least it’s still higher than others even by not that much. Anyone know of another online account with comparable rates and more liquid access than SP? I cant close goals for up to 7 days at a time with SP.

  • Kevin K

    CapitalOne is very close with their 10% quarterly bonus. I’m glad I am only using this what it was meant for (goal accounts) and kept a high interest savings account with CapitalOne

  • Chad

    Thanks a lot Dumb Pig. You fat cats at BBVA Compass or whatever are still going to take home the fat paychecks. I’m stuck with you guys whether I like it or not since no one else offers 1.75%. How about just leaving the interest rates where they were? Or learning how to manage your costs better (since you have no brick and mortar expenses!!!!!!)

  • Jesse Mathewson

    For people with smaller balances or savings accounts for their children (which I have) this is still a very good rate.
    And as Kevin says, as a goal account (not an investment account solely) it is still very good.

  • Tim

    Is is disappointing to read about the interest rate dropping? Sure it is! But it’s also disappointing to see so many commenters with no idea about how the market works. You think SmartyPig wants to cut rates? Or would you prefer that they lose money while you chase pennies?

    To answer comment 19, the point of “boasting about being higher than the competition” is to remind us that a knee-jerk reaction like jumping to another bank would ultimately be unproductive. And as to your concern about liquidity, one of the reasons I chose SmartyPig is because they’re not quite as liquid as a regular bank. I’m saving this money for a reason, so it makes sense to me to have it be difficult to raid the piggy bank (pun intended).

    You folks can run around like chickens with your heads cut off, chasing fractions of percentage points hither and yon. I, on the other hand, will stay here. SmartyPig still has some of the best rates out there, so it doesn’t make sense for me to go elsewhere.

  • FedupwithdaFed

    Sorry, You lost me. I enjoyed 2.15% because it was a the highest. My credit union offers 1.50% and I don’t have to wait to take out my cash. On September 8th, you lost a SmartyPig customer. Besides, Cash is weak and Gold and Silver are better long term investments with better returns.

  • Tim

    Chad, chill. Dude, first of all, they’re getting free money on top of the money that already belongs to us. Second of all, factor that up against ALL the accounts on SmartyPig. You don’t think they’re hurting? The economy is in shambles, and really? You don’t think that SP, paying upwards of 2 percent per account affects them?

    Don’t get me wrong, I don’t want the rate decrease either, but shut up. You’re criticizing a business that you know nothing about. What I like most about your post is despite all your complaining, you actually bookend a message with your complaints, and that is, “I’m ‘stuck’ with you guys whether I like it or not since no one else offers 1.75%.” Stuck. lol.

    You have the privilege to make money with money. Don’t you dare complain about the one that gives you the most for your money.

  • Ryan

    For anyone complaining I would point to the recent decline in treasury rates as the culprit. Most banks (and I’m sure SP is no different) take your savings and use them to invest in higher returning assets. Interest rates across the board have decrease from 3 months ago, so it would make sense that SP must also drop their rates.

  • Not a planted comment

    i love how all these Smarty Pig blog postings have clearly planted comments, like the one from Decidedly Nameless. anyways, not that surprising on the rate cut, although i’m a little worried since it’s so soon after BBVA came in. i’m expecting 1.5% by end of the year…..

  • Mr. Kuhn

    well my buble bursted.just started and have been telling everyone i know how great it is. will stay awhile but if somthing better comes along i will be movin on. hate to ecoonomy and self serving gov. officials. hows the paso doing???

  • swiehn

    I’m still with smartypig, but only because they give the largest interest to the smallest account balance. Most banks give the bigger percentage to those who have the most money in their account or the bonuses. Those who have the most get the most those who don’t get the least. I see why, but it still stinks.

  • Rebecca

    I’m extremely disappointed. I’ve been a member for quite some time now, and this is the first time the rate has dropped under 2% since I joined. I’m fairly certain it has more to do with BBVA, than it does the economy.

  • Sue

    Ryan, You’re right. The banks invest in higher yielding assests and that is exactly what I intend to do. Say what you want about the stock market, it has served me better than a 1.75 percent return. It’s just disappointing to be in this for less than 2 months and as usual, the perk goes down. People just get tired of it. By the way, freedom of speech does mean that people can complain and that is not always a bad thing.

  • Tim

    More bad economic ramifications of the out of control Tax and Spend culture in Washington D.C. We are done as a free nation. The ship is going down.

  • Robert

    Ally just dropped their rate(s) too.

  • MD in Mich

    I just closed a goal and was planning on getting a gift card when I saw there was a processing fee to receive an Amazon gift card! I went back to the FAQ and never saw anything about a fee for redeeming your goal for a gift card. Is that new, too? I am seriously thinking of leaving Smarty Pig and going back to Ally or Discover Bank.

  • James

    If BBVA really wanted to be leaders, help saver/consumer and help the economy, they would raise the interest rate. To me they are showing there insecurity, or maybe it’s greed from upper management.

  • Eric

    It was fun.. I am out now.

  • Kevin

    I think you should take the 2.15% down from the website.

  • Kelly

    SmartyPig has been the only real reason I’ve been able to save any money at all. Their website is clean and well-organized and their goal system is really well-designed; I feel like I’m saving for a reason, which makes it easier to do. It’s a bummer that they lowered their rates, and if they make it any lower than this, I might consider moving, but for now, they’ve still got my vote.

  • Alice

    I just joined and haven’t even received a disbursement yet. Does this mean the interest is being paid on September 6? -or-?

  • Angela

    I’m very disappointed and pretty certain BBVA has everything to do with it. I also have a traditional BBVA savings account, with their 0.1% interest rate. I know the economy is bad, but when I saw BBVA taking over, I knew it wouldn’t be long before this happened.

  • Richard Leonard

    Weinschenk, I, too, sense a connection between the decrease and the alliance with BBVA. I will keep my eye out immediately for another resting place for my 45,000 dollars. You guys are not to be trusted!!!

  • Dorothy

    1.75 means saving with SmartyPig is no longer better than my friendly local credit union’s watered down rewards checking. Too bad, I just joined 8 days ago! I’d been telling everyone I know, too.

    I plan to keep a little here for the affiliate rewards, but until my CU’s rates drop, it’s no longer looking like SP should be the primary home for my tiny savings.

  • jojibro

    I heartily agree that BBVA/COMPASS is a poorly run financial institution.
    What they have told me is that SmartyPig was actually aquired (bought) by them.
    Where is the disclosure on that?

  • mark

    FYI:
    What you do not know is thatSmartyPig is now owned by BBVA/COMPASS.
    Perhaps that has something to do with the rate drop.

  • Joh

    You will notice they HAVE STILL NOT changed the 2.15 on their entry page, also HAVE STILL NOT changed the truth & lending that says 2.15. I knew when bank changed it would not be good. I will be moving someplace—-because they will reduce again, and ultimately be a low interest payer.

  • Tony Nick

    Ford Interest Advantage ( a money market)from Ford Credit pays 1.85% for any amount over $50,000 and no limit! Between $15,000 to $49,999 is at 1.70 %.
    If your interested check out: fordcredit.com/interestadvantage.

  • Andrew

    Thanks for nothing BBVA Compass. This comes as no surprise. I am taking my money elsewhere.

  • Natalie

    I knew this would happen. However, the remaining interest rate will still be great (provided that it won’t continue to drop). But that aside, what I like about Smartypig is the whole idea behind it. Sure, I could open up a regular savings account with a bank for these goals, but, think about it, with a regular savings account there are fees, there is usually “rude” customer service, it’s not encouraging to keep up your savings when it is right next to your checking account (you’re more likely to spend it)…. But, with Smartypig, there’s NO fees, I’ve always been treated very well by their reps over the phone (no talking to machines or being transported around to different departments), it’s very encouraging when it comes to saving money because it’s unique and fun, not mention there is the benefit of the cash boosts with the retailers. So I’m still VERY thankful for it.

  • Banker

    Sure, that’s a beautiful explanation about why they need to reduce the interest rate. Of course, when the market situation gets better, there will be no rate increase or charming explanations about it. It’s all corporate. Come on, talented America, please create a web bank that works for the people and not for the greedy!!! Show us that America cares!

  • Jaybo

    I never let the Pig move my money to BVACompass. As soon as I found out one of the big banks was taking over the Pig, I knew the rate would fall no matter what the economy itself did. I moved mine to my existing Redneck Bank MM(still paying 2% but not taking any new customers). You can still get the 2% at Evantage and AmericaNetBank. Or go for a 5 year ALLY CD with only a 60 day penalty for early withdrawal. With such a small penalty for early withdrawal, the ALLY CD’s cannot be beaten.

  • James

    Can we assume that the rates will go up as soon as the markets recover?

  • Disappointed

    The sad part is that many of my friends that keep up with Smartypig called it. They all said the first thing that BBVA Compass would do is lower the interest rate. I wanted to give them the benefit of the doubt, but I was wrong. Btw-BBVA that was a jerky move blaming on the economy.

  • Rebecca

    You homepage is still reading as 2.15%, which is at the least not cool and quite possibly illegal. Also, why did I get no email notice about this? I had to hear it through twitter complaints.

  • Kurt

    Smarty Pig is still the best choice for anyone who wants to put money in an account without worry for losses, up to the 50k of course. The decrease sucks, but for many people looking for houses the decrease in rates is helpful. It’s a double edged sword, however, if you are okay with keeping track of your purchases you could always try one of those high interest checking accounts.
    http://www.doughroller.net is the place to go and check out said things. If you can get better rates go to it. I will stay here for now, but I’m always looking for ways to make my money work for me. Yes I’m in stocks, yes it’s a gamble, but I’m also having fun with that.

  • bighairproduction

    Why is the rate still listed as 2.15%?? Very misleading. Please update the website.

  • Mike Towns

    Think about it. BBVA rates will continue to drop. They have offered their existing costumers garbage interest rates for years. Now that BBVA own SP, what do you think their existing customers did when they were informed about SP? They moved their money from their garbage savings accounts into SP, causing BBVA to lose a large amount of $$. To make up for the lost BBVA will continue to drop rates and blame it on the market. BBVA could have easily made the transition/conversion for their existing costumers to SP, but that will have been a major increase in the interest BBVA pay out to their costumers. SP is online managed so yes BBVA can offer a higher rate than local banks because of it. So don’t be surprised when the rates decrease again. Take advantage of the rate they offer now with the perks, but never leave “all” of your money in one place.

  • Chantillian

    Actually, I was expecting the interest rate to drop last Spring. So, as odd as it may seem, I find myself pleasantly surprised the 2.15% rate lasted as long as it did.

  • Jim

    Does BBVA really own SmartyPig? I’m not believing it until I hear it from SmartyPig.

  • dongo

    never fails, everytime an institution is sold it drops it’s rates, saw it comin.

  • Charlie

    Very sad. It seems like we were enticed with an excellent, above average rate and just like other banking institutions, initial rates look great and then boom things change. It is unfortunate because I really enjoyed this program but will be leaving now.

  • JW

    AmericaNet and Redneck Bank both pay 2% up to $35K balances. So sorry to see SmartyPig changing its ways.

  • Phil

    I’m grateful. I opened one account a while ago, and last week tried to open another one. But I failed the “test” so they are sending me paperwork to open the second account. Now I will no to NOT open another account. SmartyPig–your lure was the rate. Now that is gone.

  • Rich

    Wait a second here…where are you guys getting the idea that BBVA owns SmartyPig? That’s not true at all! Of course, the internet is just awesome for spreading lies and false information.
    Anyway, you guys are acting like it is the end of the world and that SmartyPig is a bunch of evil, greedy people. Wow! They have never given me any reason to believe that they aren’t doing their very best to offer me the best deal they can. Whenever I’ve called into customer service they have tried to help me. All you whiners just need to grow up.

  • jojibro

    “Rich”,
    Stating the facts is not whining.
    I am simply stating what my local BBVA/COMPASS branch banker told me last Saturday.
    Smartypig has sold an interest (partial or total) of itself to BBVA/COMPASS.

    We’ll have to see whether this affects customer service as well.

    This is not an internet rumor.
    So grow up and pay attention to what’s happening.

  • jojibro

    ******************************************
    Beware, this is NOT a bank account!
    ******************************************

    Tony Nick – September 04 2010 @ 11:33 pm

    Ford Interest Advantage ( a money market)from Ford Credit pays 1.85% for any amount over $50,000 and no limit! Between $15,000 to $49,999 is at 1.70 %.
    If your interested check out: fordcredit.com/interestadvantage.

  • http://freefrombroke.com Craig

    There’s still a pretty competitive rate and the idea behind the savings program is still valid, making SmartyPig a good choice for many.

    Still, the 2.15% really put you guys toward the top.

  • KVB

    Well, its too bad but still more than I am earning at my Credit Union. I have seen those sites offering 4% on checking accts but you have to have drafts or direct deposit or use your debit card X number of times. I am not looking for all of that. I just want a place to earn a decent rate on savings.

  • Courtney

    I joined when SP was over 4%. I didnt’t know much about BBVA when they took over, but had a bad feeling this would happen. While 1.75% is a good rate, there are better ones out there. Sorry, I’m leaving too.

  • Jason

    Just found out about the rate drop. I plan on taking my money to either AmericaNet Bank, Evantage Bank, or Redneck bank now, all offering 2.00% APY and full liquidity for my money, something SmartyPig does not.

    The nice thing is, at least, since SmartyPig doesn’t do any kind of online bill pay or anything it’s very easy to leave here for a new place. Not tied down at all.

  • Starr

    I’m not surprised, but I am disappointed to be told I need to tighten my belt and get back to the basics. A purely economic explanation would do, not a lecture on how things are tough for everyone. We already know that. My money will stay here, though, because the rates are still competitive, and I don’t feel like switching.

  • Ashar

    It makes sense given the cost for banks to borrow money from the Fed Reserve is so low, why would they spend more (higher interest rate) to borrow from depositors? Unfortunately it’s far from even-handed as the people who can borrow money most easily are the corporations and they are stockpiling the cash (1.6 trillion at the moment) because they know they won’t get a better deal later. Supposedly this should dry up the money supply for others but since the rates continue to be so low with no signs of increasing, it will most likely cause a fall in the value of the dollar soon as they start spending.

    The money we have now is worth more today than it will be tomorrow but this will be much more acute given the stockpiling – we have no choice but to continue to make money work for us in interest-bearing accounts or investments just to keep up. The biggest losers are the ones keeping that cash under their mattress or in standard checking accounts. So far, I have yet to find a higher competitive rate than from smartypig.

  • SLC

    Remember – interest with SP accrues every three months. Take that recent change / blow into account also. So, it takes three months to start earning interest on your interest earned the prior investment interval (3 months).

  • Pingback: SmartyPig Lowers Their Interest Rate

  • Brad

    I just opened an acct at AmericaNet also, they pay 2%.

  • Robert

    That is one thing I loving about SmartPig here everything from tv to the president saying the economy is to blame at lease there being truthful on the reason let see one of the major banks say that to the public

  • Mike

    For all those jumping ship to AmericaNet Bank, their interest rate will decrease to 1.75% on November 18th. Any account with more than 35k earns only 1%. No free lunch anywhere, guys.

  • Michelle

    #72 SLC
    You are mistaken – interest at SmartyPig accrues daily. It is paid quarterly. There is a difference.

  • Brad

    @Mike – The AmericaNet Bank rate of 1.75% looks a lot more competitive now.

  • Jasper

    I appreciate it must have been hard to make this mistake. But I was happy to endorse SmartyPig to many friends as an online bank that stood out for its features, the ease of use, and its saving rate. I’m glad SmartyPig held out as long as it did to keep its interest rate up, and hope the bank will lead the pack the way it used to in bringing back benefits and higher rates to its customers as the economy improves.

  • mike

    im out. This is ridiculous. 1.35% is pointless. Im better off putting cash under my mattress…..

  • Raymond

    SmartyPig Quietly Cuts its Savings Account Rate – 1.35%
    Comments (12)Monday, January 3, 2011 – 7:45 PM
    SmartyPig just reduced its savings account rate from 1.75% APY to 1.35% APY for balances up to $50K. With this rate cut, SmartyPig no longer has the top rate for a nationally available savings account. However, I only have four banks with non-promo yields above 1.35% in my weekly summary .

    It’s interesting to note that there was no mention of this rate cut at the SmartyPig blog. Also, there was apparently no email notice to customers. I asked a reader who has a SmartyPig account, and he said there was no notice whatsoever….

    I did get an email, but SmartyPig is no longer top dog and you can do better if you shop around. No balance restrictions, i.e. only paying 1.35% up to 50K and you can move money with out the crazy closing your goal as on the Pig.

    And yes, I’m going else where, where I can get a little better return with no restrictions as is on SmartyPig.

  • Steve in W MA

    Regardless of the griping, Smartypig rates (now at 1.35% APY as of 1/6/11) are still higher than almost any year or even 2 year CD in the nation. And you get basically instant callability on your money So basically, it’s a good deal.

    The interface is still clunky, though.

    Ray (just above) if you’ve got a line on a better rate then post back. I’ve checked and there are no better rates out there.

    I think we all know the limits of SmartyPig. We also know why they will want to reduce the interest rate to the lowest possible that will retain adequate business for them. They are doing the same thing that you are doing–trying to make some money. And they have to provide some value to do so–but not so much that they are bleeding themselves. If SP is beneficial to you, use it. If it isn’t don’t. No need to hate on them.

  • Lauren

    I was disappointed to see the rate drop from 1.75% to 1.35%… and its true that SmartyPig no longer has the best deal (as far as interest rates are concerned). The reason it would be beneficial to go with another bank, is simply that SmartyPig compounds interest QUARTARLY, while many others compound DAILY. One such example is with Personal Savings from American Express – you can get 1.3% with interest compounded daily, so if your balance is large enough, this could add up to a substantial amount over time!

    However, the idea that SmartyPig was founded upon is what really makes them great. It is the concept of easier, successful savings for a specific purpose. It is about re-learning how to live within your means, AND getting to enjoy larger purchases – debt free!!!!

    Plus, all the extras from the retailer gift cards make a nice bonus to keeping your savings here!

  • Paul

    Not true on the CD’s. We have an Ally CD, 3-year, paying in the neighborhood of 2%. Also, 5-year CD’s are paying around 2.5%. And don’t worry about being stuck in it for the whole term, as their only penalty for early withdrawal is forfeiting 2 months of interest.

    Way better deal than any online savings account.

  • Brad

    @Steve in W MA
    http://americanetbank.com/
    1.75% Money Market Acct
    Earns interest of 1.75% APY* calculated on your daily balance of up to $35,000.
    Amounts over $35,000 earn 1.00% APY*
    Includes 6 FREE withdrawals per month**
    $5 fee for each additional withdrawal

  • Mark

    I did enjoy a brief stint with Smarty Pig, but unfortunately the 2.15%-> 1.75%->1.35% has resulted in me leaving. But I will not complain, they did what they have to do, and so do I. Hopefully in the future if they come back in the 2% interest range, I’ll be back. Until then I’ll put my money on CDs and dividend stocks.

  • Shelley

    Still love you SmartyPig. I still don’t know why people gripe when they are not told when the interest rate goes down. None of my other banks/credit union EVER send me a notice when the rate goes down. Still higher than my other banking locations plus I use SP for a specific purpose so I still with SP all the way.

    Thanks!

  • Filip

    Everyone else has this trend. No free lunch. I guess that’s what happens when “growth” is dependant on consumers buying on credit.

    @Brad:
    American Net Bank: “Effective April 21, 2011, the interest rate offered on Mega Money Market Checking Accounts will be 1.50% APY* for average daily balances up to $35,000. Amounts over $35,000 will earn 1.00% APY*.” It’s also closed to new accounts.

    As of today, Smarty Pig was still besting all annual Savings/MMA rates. Also, if you compare APY (instead of APR) across all banks you don’t have to worry about daily vs monthly vs quarterly interest compounding. As an example, the difference between quarterly and daily compounding on $100k at 1.35% APR is a whopping $2.28 (assuming the $100k just sits there and you don’t add/withdraw). So if you use SmartyPig as medium-term (3 month – 1 year) savings I don’t think it’s that big of a deal. If you use it for short term savings then you’re better served by a local bank / credit union anyway as you need the liquidity anyway.

    If you don’t need the goal-saving features (you don’t have many buckets) CDs or dividends are the way to go, especially for high balances where 1% actually makes a difference. Depending on your risk I know people who have had luck with peer to peer lending, but to get the high returns (9-11%) you need to be willing to put the effort into setting up a good system and screening applicants. I don’t think anyone uses SmartyPig for long term investing ($$$, 5+ Years), it’s really more for medium term savings (IMO). For me, the effort of setting up a revolving CD system or 5 seperate accounts to track my small goals is not worth the difference in savings. There’s also the added benefit of keeping an account open for a longer term on your credit report.

  • Robert

    American Express personal savings just went to 1.0% today.

  • Anonymous

    Wow that is quite a plummet in your interests down to 0.70% APY. Are you still gonna try and claim you are competitive?
    SP clients should join bank transfer bank and move their accts to a credit union.

    • New customer – now unhappy…

      I just signed up for an account a couple weeks ago because of the interest rate… Wow, I am really disapointed that it dropped that fast, sad. I’m sure next year at this time it will be around 0.2%

      But look at the positive, Bob Weinschenk will be getting a fatter bonus this year!

  • A Long Time Customer – Former

    Sorry, your comparison information is way out of whack – Not accurate

  • http://www.couponsmarter.com Peter – Coupon Codes

    Great Article! We all need to watch our pennies and get back to the basics. Cutting back is a big part of “getting back,” after all, and we thank you for continuing to reach for your goals with us.

  • http://www.couponsmarter.com Peter – Coupon Codes

    Great Article! We all need to watch our pennies and get back to the basics. Cutting back is a big part of “getting back,” after all, and we thank you for continuing to reach for your goals with us.

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