2.15% APY best interest rates for savings account with SmartyPig effective 19 May 2010
SmartyPig recently released an advisory to inform their consumers that they will be increasing the earnings of their high yield savings account with a current interest rate of 2.00% APY to 2.15% APY. This best savings account interest rate though will not be in effect for all balances.
One of our readers who is a savings account holder with SmartyPig received the notice. Bascally, SmartyPig explains that the savings account will have a tiered structure on which will depend you savings interest rate and annual percentage yield. The variable interest rate scheme will be effective May 19 and will be as follows:
• $1 to $50,000 2.133% 2.15% APY
• Above $50K 0.499% 0.50% APY
Take note though that the savings interest rate is not determined by your balance but the balances of all of your goals in your profile with SmartyPig. The savings interest rates will be variable and can change after opening the account. You also have to take into consideration the fees that will affect the earnings of your account.
You can check out the blog post of SmartyPig where they admit that some consumers may actually have a decreased interest rate because of the change. They clarify though that 95% of their customers will benefit with this move.
Our reader who sent the email asked if the partner bank West Bank is in negotiation with another bank to hold the deposits of SmartyPig. Back in January, West Bank made their intentions of passing the SmartyPig to a bigger bank. It is also possible that SmartyPig is just trying to position itself in the market to catch the attention of banks who may want to take the controls from West Bank.
It is also possible that the move to up the rates has nothing to do with any transition. It appears that SmartyPig is not eyeing customers with big balances since their strategy is to earn through cuts from their partner retailers who benefit when SmartyPig customers reach their goals.
SmartyPig has 2 stars for performance from bankrate.com based on their September 2009 collected data. BauerFinancial gives a higher rating of 3 ½ stars for soundness and safety.
The partnership of SmartyPig can be verified through the website of West Bank. West Bank is listed with the FDIC since 1934 and has certificate number 15614.
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Comment by Horace Purkey — October 1, 2010 @ 6:04 pm