Comments on: SmartyPig Review – SmartyPig is Smart Banking

By: Veronica

Veronica — Thu, 11 Nov 2010 18:26:15 +0000

Smarty Pig SUCKS – you can’t withdraw partial funds –
if you want to close a goal you can only deposit back into the account the money the account came from even if you have done transactions with other banks with them. Their interface is POORLY DESIGNED – Customer Service were really RUDE too the lady started yelling at me. RUN don’t walk away from Smarty Pig.

By: Erik

Erik — Fri, 16 Jul 2010 02:52:55 +0000

This article from the NY Times shows how SmartyPig makes money, and also shows they are FDIC insured.

By: Ryan

Ryan — Thu, 15 Jul 2010 17:55:53 +0000

I'm not exactly sure, but I believe it is because they limit the highest interest rate to $50,000; anything above $50,000 in deposits reduces the interest rate for the entire account, not just the amount above $50k. Because the deposits are tied to goals, it is somewhat similar to a short term CD. The bank knows that in all likelihood, the deposits will remain within the account for an average of "x" number of days, so they can turn around and lend it at a higher interest rate. A win-win for everyone involved. The best part is all deposits are FDIC insured and are handled by West Bank from Iowa, a financial institution that has been around since 1893. Edit to add: As of August 1, 2010, SmartyPig will be transferring all current accounts to Compass Bank, which is a larger bank, more capable of handling the growing requirements of SmartyPig's customer base. You can read more about the change here.

By: Ryan

Ryan — Thu, 15 Jul 2010 16:57:39 +0000

Erik, the SmartyPig accounts are managed by West Bank, a financial institution that has been around since 1893. Based on on everything I have read, the funds are FDIC insured. I am interested to see where it states deposits are not FDIC insured. Edit to add: As of August 1, 2010, SmartyPig will be transferring all current accounts to Compass Bank, which is a larger bank, more capable of handling the growing requirements of SmartyPig’s customer base.

By: Erik

Erik — Thu, 15 Jul 2010 09:32:52 +0000

However, I do not think that they themselves are FDIC insured. Read the fine print.

By: Dan

Dan — Wed, 14 Jul 2010 03:32:10 +0000

How are they able to double the market rate??

By: pamela

pamela — Wed, 14 Jul 2010 02:36:48 +0000

did you know that once you reach your goal you can STILL add to that account? You don’t need to close it. I reached a goal, decided to see what would happen if I manually tried to add money and it worked. I have since added 4 more times.

By: myfinancialobjectives

myfinancialobjectives — Wed, 14 Jul 2010 00:10:16 +0000

Wow that interest rate is really awesome for accounts under $50,000! I have to admit, I am getting a bit tired of looking at my 1.10% with ING!

I also like the goal aspect of it, as well as the updates for Facebook. They have got an excellent advertising team it seems!