SmartyPig announced on Friday that they will be making the largest cut in the interest rates that they offer in the last year.
On SmartyPig’s blog, the company’s co-founder Michael Ferrari, announced the news:
Beginning Monday, Aug. 17, we will be reducing our APY to 2.01%. Historically, we’ve initiated less-frequent drops so as to enable our customers to earn as much interest for the longest possible amount of time rather than knock 10 or 20 basis points off here and there.
Until this rate cut, SmartyPig had the best non-promotional interest rate for online savings accounts. This most recent drop to 2.01% APY keeps the bank competitive with many other offerings, but has lost the mantle of having the best interest rate. The bank which now has the best non-promotional interest rate for an online savings account is Tennessee Commerce Bank, which offers an online savings account with a 2.30% APY.
If you are unfamiliar with SmartyPig, it’s an online savings account with a twist. Instead of having a “catch-all” savings account where you put any money that’s labeled savings, you use their account to save toward specific financial goals that you have. Even your friends and family members can contribute to your savings goals. Once your financial goal is met, you can either transfer that money out of your account or have the money sent to you in the form of discounted gift cards for certain retailers to make your purchase with.
