bank rates

SmartyPig’s 3.05% Savings Account

SmartyPig

SmartyPig continues to be pay a very competitive rate on its unique type of savings account.

It’s true that the return has fallen from 4.30% APY in March 2008, to 3.25% APY last winter and 3.05% today.

But where else can you find a savings or money market account that’s still paying 3%? (That’s not a rhetorical question. If you know of a bank or credit union with a better high-yield savings account we really want to know.)

Of course you have to abide by SmartyPig’s unusual, goal-oriented rules.

When you open an account, you must set a savings goal along with the date you want to reach it and deposit a minimum of $250 into the account.

SmartyPig will look at your goal amount and timeline and suggest a monthly automatic withdrawal from your regular checking or savings account that will satisfy that goal.

If you approve, you’re in business.

You can always withdraw your savings before you reach your goal, but you have to take out all of it, not just part of it. It’s another of those odd, SmartyPig rules that tries to encourage you to stick to your plan.

Your savings are FDIC-insured, the Web site is secured and your funds are held in West Bank, a 105-year-old institution in Iowa.

Equally important is that readers who’ve tried SmartyPig seem to like it.

“I have been with them for 6 months now and have not had one problem,” one told us after our last post about SmartyPig. “Anytime I have had a question, customer service has been prompt and courteous both by phone and e-mail.”

Credit card lawWill the credit card companies make good on their threat to raise fees and rates on millions of customers now that Congress has clamped down on some of the cards’ most abusive and profitable practices? It’s on Bankaholic’s Personal Finance Blog. Or just click the “finance” tab above.

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