Beginning Monday, Aug. 17, we will be reducing our APY to 2.01%. Historically, we've initiated less-frequent drops so as to enable our customers to earn as much interest for the longest possible amount of time rather than knock 10 or 20 basis points off here and there. By visiting here, you'll find that we're still offering one of the top rates in the country. Add the social aspect of our system that allows friends and family help you to reach your goal, and our cash boosts of up to 6% from some of your favorite retailers and travel companies, and it is easy to see why people saving for specific goals are still, far and away, earning the most money for their money with SmartyPig.

There are still no fees. No time limitations. This is not a special for new money. And SmartyPig is not restricted to residents of only certain states. Our APY is still higher than the big boys - in most cases, much higher. And we aim to always be extremely competitive when it comes to the rate we offer.

We are doing everything in our power to make your SmartyPig experience one that is not only positive and worth sharing, but completely transparent. This is why instead of burying this change somewhere in your account summary we wanted to reach out beforehand, and why we invite you to voice your comments and/or concerns on any of our channels of communication: Twitter, Facebook, Get Satisfaction, our Blog, etc.

At the end of the day, we want for nothing more than our customers to get the best deals possible. We want to help reverse the credit-card mindset of "buy now, pay later." And we want to remain the best way to save for your wedding, family vacation, new TV, emergency fund or the future of your children. We think we are. But we cordially invite you to tell us 24 hours a day, 7 days a week your ideas on how to make SmartyPig even better.

Your using SmartyPig is greatly appreciated. And as always, good luck with your saving goals!

Sincerely,

Michael Ferrari, co-founder
mferrari(at)smartypig(dot)com
@mferrari

"The problem with the credit-card industry isn't just credit-card companies - it's you too," writes Barbara Kiviat in Time magazine. And she could not be more spot on. Though the American personal saving rate has climbed to nearly 5% (from depressing lows of -2% just a few years back) the almost $1 trillion in revolving debt paints a far less rosier picture. Blaming our bad habits on credit card companies is like blaming a drinking problem on the bottle rather than the person boozing. True, these credit card companies are out to make a quick buck off the cardholder, are raising rates on their best companies and have pushed the limits of "fair" practice to the point that Congress is stepping in. (Insert super hero theme music here!) But what we absolutely have to realize though, is that the true culpability is in the hands of the individual. The devil did not make you do it. The dog did not eat your homework.

Simply put, it's high time to steer clear of troublesome plastic. The noise out of Washington is about the rights of credit card users. It's a worthy cause and a good fight, but lost in the shuffle is the fact that you only get tripped up if you make the decision to put those cards to "work". After all, just because you buy the car doesn't mean you can drive it as fast as you want. And if you use SmartyPig, your speed is always regulated to where it should be. You create a goal, you tell us how much, you push a button and then you adjust to what you can afford. And instead of paying 21% interest on what you buy, you earn 3.05% interest on what you're saving for.

When it comes to big-ticket purchases, SmartyPig customers like Stephanie from Poorer Than You realize the importance of saving. After winning $50 in one of our gift card giveaways, Stephanie decided to save her money for a new car. After setting up her account and new goal, she is making a monthly deposit into SmartyPig to help her reach her goal. Her friends and family are able to contribute to her goal as well, allowing her to move one step closer to her new wheels without getting off track or, worse, going off the road of financial sensibility entirely.

It's easy, really: Think about your purchase. Save before spending. Have cash in hand when you buy. Own whatever it is you want - not your credit card company. Saving with SmartyPig is an easy solution to help keep you heading in the right direction.