Current APY: 2.75% which is sort of industry leading online saving account interest rate.
so what's a catch ? You cannot withdraw partial money, either you close your account before meeting your goal or save enough to meet your goal. You can withdraw money only in these two conditions. I don't think it's bad for a saver, looking for high yield. You have an option of taking money out via a gift card with some added bonuses too.
Is it safe ? Money is held at West Bank, an FDIC insured bank. FDIC insurance covers an individual account holder for up to the maximum allowed by law, currently 250K in accounts held at west bank.
Is web site safe ? Com'on this web 2.0 has one of the stringent signup process, I have ever seen. This is the only bad experience so far, however I see potential benefits of doing it.
- Your password need to be One capital case, one small case and 1 number. Pretty awkward password requirement.
- This is followed by signing up for security questions, which is followed by a security phrase and after the phrase I need to pick a picture that they will show me when I log-in every time to prevent phishing.
- This is not enough, then they will need a driver license along with SSN. Why on earth I need to provide DL number to open a savings account.
- Now I will have soft pull on credit and will need to answer 2 questions from credit report to ascertain, it is me and only me opening the bank account.
With Smarty pig, you can start multiple goals and start saving for it. Say down payment of a house or a big screen tv. You decide time frame and amount to fund each month.
You can even use their widget or share your savings goal with friends and family. If this is not enough, you can also allow others to contribute to your savings goal. This is kinda nice web 2.0 social.
Please read FAQ from SmartyPig and do your own research if you are interested in opening an account with them.
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