Goodbye Redneck, Hello SmartyPig

smartypigA few days ago I mentioned a high yield savings account from Redneck Bank.  I just found another FDIC insured savings account with a higher APY over at SmartyPig….yes you read that right. As with Redneck Bank, Smartypig is backed by a large bank (West Bank) and your funds are FDIC insured. Their current rate is 3.25% with no maximum however I read on another board that it will go down to 3.01 starting April 1st.  Either way this is by far one of the best rates online.

The idea behind Smarty Pig is to allow users to set up savings accounts for everything from vacations to wedding funds and allow their friends and family to help contribute to the fund (if you decide to make your savings account public).  A few months back the only way to get your funds out was either via merchant gift cards or check however they have now added the ability for you to get your money back to your checking account via ACH deposits.

Even though I posted about RedNeck Bank last week, I couldn’t see putting money there and having “Redneck Bank” show up on my credit report. I’m not sure why but for some reason the thought of having SmartyPig isn’t nearly as bad to me.  I had planned on setting up an account with GMAC Bank as their rate was a decent 2.50 last week.  I started the sign up process last week and have still not gotten my account setup there. To make matters worse, their rate just dropped to 2.25%.

I decided since I still hadn’t gotten my GMAC account up and running to give SmartyPig a chance.  It took me about 10 mins to set up my account. Best of all, they are already in Mint.com (the online version of quickbooks / ms money).  For info about Mint, read my previous post here.

Info from their site:
Opening an account on SmartyPig is absolutely FREE. In fact, you can open your account, create a goal, reach your goal, and redeem your goal, and SmartyPig won’t charge you a thing!

SmartyPig is for people who want to save for specific goals. Whether it’s a family vacation, the latest electronic gadget, a wedding or a down payment on a house, SmartyPig’s unique system can help you get there. Just tell us what you’re saving for, how much you want to save and when you want to reach your goal, and we’ll suggest an automatic monthly deposit you’ll make from your existing checking or saving account until you reach your goal

Savings Accounts are held in West Bank and are FDIC insured up to the maximum amount allowed by law, making using SmartyPig as safe and secure as using your own bank.