SmartyPig offers a unique way for people to save money. SmartyPig is a free online piggy bank for people saving for specific financial goals like a wedding, a vacation or a flat-screen TV. Even if your goal is saving for a rainy day, SmartyPig has been created to help you reach that goal faster and give you the most money for your money when you get there. It is free to join, there are no fees to save and there are no fees for you to withdraw your money. It sounds like a pretty good deal and it is. However, the only thing SmartyPig offers is a way to save and doesn’t get involved in the other usual banking options like CD’s, Money Market Accounts, Checking Accounts and other investment options. SmartyPig does offer unique and rewarding way to help you save some money.
Overview
The SmartyPig philosophy is the smartest way to purchase things is with the money you already have. SmartyPig helps you replace the “buy-now-pay-later” approach with a “save-then-spend” mentality. Instead of being charged a high-interest rate by your credit card company after you buy something, why not be paid high interest and get cash back for simply saving up for it first? SmartyPig offers a 1.75% APY which is one of the most competitive interest rates in the country. You can also get cash back on your purchases by using your SmartyPig Cash Rewards Card for your purchases and receive up to 10% cash back at more than 9,000 retailers. There are basically four different steps to setting up and using a SmartyPig account which are highlighted below:
- Signing Up For A SmartyPig Account: Signing up for an account is fast and easy. You will be asked for your basic contact information as well as your social security number and security questions. Once you have completed the sign-up process you then set your savings goals. Again, this can be anything you want like an emergency fund, a new card, a down payment on a house, or a flat screen T.V.
- Savings Goals: Your savings goals is an important step in the process because in order to participate in SmartyPig, you must set a savings goal and contribute towards that goal once a month. Now you can decide at anytime to change your goal or your contribution amount, but you have to establish a goal. The idea here is that you will be saving towards your future goals, however, there is no penalty if you can’t make your automatic deposits.
- Get Friends & Family Involved: A cool feature is that in addition to you saving your own money, you can also have your friends and family help you reach your goals. If you have a friend or family member that also has a SmartyPig account they can simply transfer fund into your account for free. Another option is add funds with the use of a debit or credit card and for that there is a 2.9% fee charged to the sender.
- Once You Meet Your Goal: Once you have met your savings goal, you can withdraw your funds. SmartyPig offers you three different ways to withdraw your money. First you can have the funds transferred back to your bank account that you were making deposits from. Another option is to have your fund deposited onto a SmartyPig Prepaid MasterCard. This card of course can be used everywhere MasterCard debit is accepted. Finally you can cash your savings in for gift cards from premium merchants who have partnered with SmartyPig. With the last option, you not only receive gift cards, but you will get a higher dollar amount on the gift card than what you spend from your savings, depending on the merchant.
You Can Save With Gift Cards
Another way SmartyPig might help you is if you are planning on making a big purchases in the future. You could open up a SmartyPig online savings account and cash in your savings for a gift card to the merchant where you plan on making that big purchase. You can save some money by doing this because there are over 9,000 merchants that will throw in additional money towards your gift card. For example, check out the table below that list some of those merchants and look at the corresponding amount they will add to your gift card.
| Merchant | Additional $$$ |
|---|---|
| Amazon.com | 4% |
| American Airlines | 3% |
| BabiesRUs | 2% |
| Barnes & Noble | 5% |
| Bass Pro Shop | 6% |
| Bed Bath & Beyond | 4% |
| Best Buy | 2% |
| Cabela's | 5% |
| Game Stop | 3% |
| Gap | 5% |
| The Home Depot | 3% |
| iTunes | 2% |
| Jared | 7% |
| Kmart | 4% |
| Kohl's | 5% |
| Macy's | 12% |
| Overstock | 7% |
| Sandals | 10% |
| Sears | 4% |
| ToysRUs | 2% |
| Travelocity Hotels | 10% |
| Travelocity Vacations | 2%-10% |
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