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SmartyPig Online Savings Website
04/01/2008
Innovation
The one of a kind online savings website SmartyPig has been launched a few weeks ago. Users can create savings accounts on the website. Bank accounts are held at West Bank. They are encouraged to create savings goals funded through automatic monthly ACH (electronic) transfers from other bank accounts. The savings goals can be made public or kept private. Public goals can be funded in part, or entirely, by outside contributors. The interest of SmartyPig is that the money cannot be withdrawn until the savings goal is met (or cancelled by the primary account holder). SmartyPig is also selling gift cards that can be redeemed towards new or existing savings goals.
How would this apply to you ? « Back to previous pagePerspective
Social networking has definitely met savings accounts. SmartyPig is said to be one of the most innovative financial service since Prosper launched two years ago. The site is processing a $4.95 fee per transaction for outside contributions. There is no fee for funds transfers from user’s bank account. The percentage is pretty high regarding the overall deposit. The gift card incurs a $4.95 processing fee and an optional $5.95 shipping fee. SmartyPig’s design, very Web 2.0, aims at young people. The prices are not well adapted to the public. The interest rate is rather high, SmartyPig pays 4.3% APY on deposits. To attract more people, the innovative online savings website should lower fees and interest rates.
