Dedicated to Deposits: Deals, Data, and Discussion

Improvements to SmartyPig's High Yield Savings Account

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SmartyPig
SmartyPig made a change a while back that has improved the service for savers. You now have the option of withdrawing money via free ACH transfers. The savings account yield has remained competitive since it was launched early this year. The yield is currently 3.90% APY.

I first reported on SmartyPig in this April post. It's designed as a social savings tool that helps you save for specific goals. Previously, you were not allowed to transfer the money out with ACH. Your options were purchasing gift cards, making ATM withdrawals or requesting a check by mail. As you can see in the SmartyPig FAQ, taking out your money now appears to be easy:

20. What if I need my money in my SmartyPig savings goal before I reach my goal?

SmartyPig savings goals may be closed at any time without penalty. You will have the option of receiving your current savings plus interest on the SmartyPig MasterCard Debit Card, the gift card of a best-in-class retailer partnering with SmartyPig, or you can ACH the funds back to your existing checking or savings account. Each redemption option is free to the customer.

However, the transfers appear to be slow. According to this FAQ:

30. Can I transfer my funds to an existing funding source, like my bank, or get my money by check?

Yes! You may transfer your funds back to your existing checking or savings account at no additional fee. This process takes 5-7 business days for the funds to post to your bank account. We no longer offer a check option.

Another improvement is that they increased the maximum deposits. The maximum deposit that can be made in one day increased from $10,000 to $50,000 (FAQ #8). Also, the maximum amount for a savings goal increased from $100,000 to $250,000 (FAQ #7).

Another thing to remember about SmartyPig is that you're required to have a savings goal with a minimum recurring monthly contribution of $25. The maximum can be $50,000. All the details are listed in the Terms and Conditions.

The savings accounts are held at West Bank, an FDIC insured bank (Certificate # 15614). If you go to West Bank, you'll see a link to SmartyPig so you know without a doubt that SmartyPig is legit.

Thanks to the reader who emailed me news of this change.

  Tags: SmartyPig, savings account

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Comments
3 comments.
Comment #1 by Anonymous posted on
Anonymous
It seems that there's no ACH-out option until you "close" your goal. That limits your flexibility.

1
Comment #2 by Anonymous posted on
Anonymous
I closed out a goal earlier this year, and I was disappointed that with many of the retail gift cards, you could only get certain dollar amounts ($25, $50, etc.). Then there was a fee to transfer the remaining balance via ACH. Perhaps this has changed (I closed my goal in September of this year) but it sort of killed the bump-up bonus for the retail gift cards (at least at the relatively low balance I was holding). I was planning to get a Best Buy card but instead I just cashed out via ACH (with no fee).

I wish I had more details... I can't remember why there was a fee with the gift card extra balance ACH-withdrawal but not with the ACH-only withdrawal. I have another goal growing right now so I will update when that matures.

1
Comment #3 by Sunny (anonymous) posted on
Sunny
how many people used this bank deal?

1