SmartyPig, a company which offers goal-based online savings accounts, is lowering the interest rate that it affords to customers from 2.10% to 1.75% effective on Tuesday, September 7th.
The company wrote the following note to its customers on its blog, “As you may know, interest rates on deposit accounts at many banks have been declining over the past several months due to poor market conditions. Likewise, the rate on your SmartyPig savings account is being reduced as a result of these same economic conditions. Effective Tuesday, Sept. 7, 2010, the interest rate paid on SmartyPig savings accounts with $50,000 or less in aggregate balances will decrease to 1.75% APY (balances of more than $50,000 will remain at .50% APY).”
The company noted that its interest rates remained much higher than that of its competitors and that with the company’s cash back offerings that it still gave consumers “the opportunity to get the most for your money when you use SmartyPig.” SmartyPig boasted that it offers up to a 14% bonus when consumers trade their savings balances for gift cards at certain retailers.
The company added, “We understand that a rate reduction can be unpopular. But we also understand that with many banks introducing creative new fees, low-to-no interest rates on savings, high interest rates on credit card debt and scant rewards for your spending dollars, the SmartyPig savings account beats them all hands down. We all have to tighten our belts during these difficult financial times. We all need to watch our pennies and get back to the basics. Cutting back is a big part of “getting back,” after all, and we thank you for continuing to reach for your goals with us.”
About SmartyPig: SmartyPig is a consumer finance site where you can earn high interest on your savings goals and get cash back when making a purchase with premium retailers and top travel companies, all while never relying on credit cards. Family and friends can also help achieve financial goals by securely contributing to your account via social networks like Facebook. Launched in April 2008, SmartyPig has proven extremely popular with consumers throughout the U.S. and in Australia where it partnered with Australia and New Zealand Banking Group Limited (ANZ) to launch www.smartypig.com.au. To date, SmartyPig customers have opened savings accounts with more than $500 million in U.S. deposits and have reached more than $300 million in savings goals. The system is based on proprietary, patent-pending technology and features the latest in security standards. SmartyPig’s U.S. banking relationship is with BBVA Compass. All funds held on deposit are FDIC insured up to the applicable legal limits. SmartyPig is based in Des Moines, Iowa. For more information on how to get started, please visit http://www.smartypig.com and follow us on Twitter: www.twitter.com/smartypig.
