bank rates

Washington Deal: 1.6% Planned Savings

Washington state residents can take advantage of a higher-yielding alternative to the online savings site SmartyPig.

TwinStar Credit Union is offering this installment accountSavers who can plan ahead can earn 1.60% APY on deposits at TwinStar Credit Union while saving up for a specific goal.

Maybe you’re eyeing a Caribbean cruise next winter, a ski trip to Colorado or a big blowout for your mother’s 80th birthday.

All you need to do is set your savings goal and your deadline for reaching it. Then the credit union will tell you how much you need to set aside each month in Planned Savings, an installment savings account.

It’s a nice alternative to SmartyPig, which offers an interest rate of 1.35% APY, but well below the top rates available with the Rainbow Savings account at Wilshire State Bank in California.

All three accounts beat the best nationally available deal for a more traditional savings account, 1.31% APY at SFGI Direct, the online division of Summit Community Bank in Moorefield, W.Va.

With TwinStar’s Planned Savings, your goals must be set for six months to 36 months away, and you can’t deposit more than $500 per month.

If you meet your goal each month, you’ll earn 1.60% APY, and at the end of the term, the credit union will deposit the money, as well as the interest it has earned, in a TwinStar account of your choice.

Like TwinStar, Smarty Pig, which is available to savers nationwide, requires that you set a savings goal and then link the goal to a funding source, like your existing checking or savings account, and set aside money regularly to meet that goal.

While TwinStar is headquartered in Olympia, Wash., membership is open to all residents of Washington state and the Portland metropolitan area. You must maintain a $25 minimum balance in a savings account as a condition of membership.

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Comments (1)
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One Existing Comment
  1. Kathy at Bankaholic said:
    on May 25th at 06:59 am

    TwinStar’s deal is still available as of May 25, 2011.