Anyone here use this account? They seem to have a 4.3% APY
http://www.smartypig.com/
Anyone here use this account? They seem to have a 4.3% APY
http://www.smartypig.com/
http://www.smartypig.com/
From West Bancorporation 8-K SEC Filing Exhibit 99.1
(Annual Meeting comments made on April 17, 2008)
One Month In:
They currently have customers in 45 states
More than 1,100 users
Goals average $6,091
Average length of goal is about three years
Top goal category is for travel
Approximately half of the goals have been made public which is higher than expected
And they are averaging 35 to 50 new accounts per day
I looked at their website, it doesn't look kosher to me.
captainwho said:I looked at their website, it doesn't look kosher to me.A+
But, "Funds are deposited with West Bank, Member FDIC."
From the terms and conditions:
"At no point in time can the funds in your SmartyPig Savings Account be transferred to a third party or a bank account outside of SmartyPig. Funds can only be redeemed on a SmartyPig MasterCard® Debit Card, a Best-In-Class Retail Gift Card or cashiers check."
SmartyPig does not work like a traditional savings account. I intended to use it for that purpose, but have yet to deposit a large amount of money.
The system is pretty simple. They require an automated ACH monthly contribution of at least $25 toward each savings goal, and the savings goal must be at least $250. You can add additional funds at any time, and edit or close a goal out at any time.
The major problem is the only way to get your funds back in cash is to call and request a check. There is no fee for this, but interest lost after the check is cut and sent by mail is a concern. One of the founders stated they plan to allow ACH withdrawals in the future, but this has not happened yet.
I am also not entirely clear how or when they post interest. Supposedly it is accrued daily and posted quarterly. What happens when a goal is reached and closed before interest has posted?
[edit] Found the answer regarding interest: Effect of closing an account - If you close your account before interest is credited you will receive the accrued interest.
That's how they can afford the higher rate. They are capturing the interchange on the debit card.
TonySpero said:From the terms and conditions:
"At no point in time can the funds in your SmartyPig Savings Account be transferred to a third party or a bank account outside of SmartyPig. Funds can only be redeemed on a SmartyPig MasterCard® Debit Card, a Best-In-Class Retail Gift Card or cashiers check."
http://smartypig.com/disclosures/terms-and-conditions
Usorry said:That's how they can afford the higher rate. They are capturing the interchange on the debit card.
It also works at an ATM, and if you can find a free one that's another way to get cash out without penalty.
Debit Card Terms said:The card can be used anywhere MasterCard® is accepted, and cash, subject to daily limits, can be withdrawn from ATMs.
Funds remaining on your card do not earn interest.
Time to process a SmartyPig MasterCard® Debit Card is 7-10 business days once all pending transactions have posted.
My understanding is that you request the Debit card when you close a savings goal. After the card is issued and loaded, you do not earn interest. Also, I do not think you earn interest during the 7-10 day processing time. I could not find any reference to the withdrawal limit.
On the positive side, once you have the card, future savings goals can be applied to the existing card. This may speed up processing time and reduce lost interest (redeem a small goal first, then after you get the card, redeem larger goal). There may also be the possibility of bank teller cash advance allowing a higher daily limit compared to the ATM.
I'm still reluctant to use this as savings account for large amounts until they allow ACH withdrawals.
Cash Withdrawal Limitations said:You may withdraw no more than $500 in cash from your account each calendar day with your ATM card or Debit card. Funds deposited via ATM transaction will not be available for withdrawal until the business day following the day of deposit.
I found the above in the Electronic Funds Transfer notice on the SmartyPig site, but the terms also contain references to other West Bank products and may not apply to SmartyPig.
SleepyNyte said:Anyone here use this account? They seem to have a 4.3% APY
http://www.smartypig.com/
Only 3.90% now. Glad I didn't bother.
3.9% is not that bad now.
Anyone know if they ever got ACH capabilities?
therivler1 said:3.9% is not that bad now.
Anyone know if they ever got ACH capabilities?
3.9% is pretty awful for the restrictions. I get 4.0% on a checking account that I can ACH money into and out of, use a debit card, and not have to worry about it.
What a rip...
Using goals as the psycological marketing ploy...and offering nothing exceptional at all in return and making it hard for transfering cash out...
What a scam...this is not FW material..This belongs on Dave Ramsey's website for his undisciplined disciples!
ES
SleepyNyte said:Anyone here use this account? They seem to have a 4.3% APY
http://www.smartypig.com/
ElectricSavant said:What a rip...
Using goals as the psycological marketing ploy...and offering nothing exceptional at all in return and making it hard for transfering cash out...
What a scam...this is not FW material..This belongs on Dave Ramsey's website for his undisciplined disciples!
ES
SleepyNyte said:Anyone here use this account? They seem to have a 4.3% APY
http://www.smartypig.com/
3.9 is a top-tier rate for online savings accounts. They can use whatever marketing ploys they want.
Unfortunately, it looks like the hassles with this bank outweigh the nice rate.
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