Consumerism Commentary went through the painless process of setting up a new SmartyPig high-yield savings account online. "The 2.01% APY currently offered is not a sky-high interest rate, but it beats just about every other major bank," they write.
Their review is definitely worth a click. SmartyPig, unlike some online banks, encourages very specific savings goal: "$20,000 for a used Porsche Boxster" for example... Or "$3,000 for an emergency fund."
The online bank is an "arm" of West Bank. The high interest rate appeals to me (my ING Direct account, for sake of contrast, is only paying out 1.10% APY at the moment... I reviewed it favorably, but it is no longer the best rate out there by any means).
There are a few things I dislike about SmartyPig, although whether I dislike them enough to avoid stashing some money there remains to be seen. First of all, don't tell me how to save my money or what to save it up for: it's called personal finance for a reason. This is a bank account, not a motivational exercise or diet regimen, right?
Just give me a high interest rate and leave me alone. Consumerism Commentary also says that the bank is "social" -- meaning you can add friends to your profile so you can all compare your bank savings goals... isn't that just wonderful. And anyone can contribute to your account if they deem your savings goal worthy of a click and a donation. I don't like that aspect at all. Maybe it's just my preference, but I like a bank's relationship to be between me and the bank -- with no observers or "friends" peering in.
Also, the bank doesn't issue you an account number, which is weird. You can link your Facebook account to your SmartyPig account -- many users, especially younger ones, will be thrilled by that.
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