SmartyPig Slices Interest Rate To 1.75%

SmartyPig just cut the interest rate on its online savings accounts from an ahead of the pack 2.15% to 1.75%, unless you have $50,000 or more in your account.

The CEO told the NYT Bucks Blog that they had to give its rate a haircut because the spread between how much it makes on loans and how much it pays depositors in order to finance those loans has gotten thinner as of late.

Looks like Charlotte will have to change the message in her web from “some pig” to “humble.”

Here’s Why Your Interest Rate Is Going Down [blog.smartypig]
The Best Savings Account Rate Just Got Worse [NYT Bucks Blog]

Comments

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  1. Alvis says:

    “SmartyPig just the interest rate on its online savings accounts…”

    Did it accidentally just the WHOLE THING?

    • Cantras says:

      I think they a verb.

    • whgt says:

      Two extra seconds of brain power produces an “ir” after “the.” Not. Difficult. Proofing is not 100% accurate, especially for a blog.

      • Cantras says:

        “SmartyPig just their interest rate” is still missing a verb. (I’m guessing you’re confused on the problem because you’re commenting an hour after the posting, when they’ve fixed the trouble)

  2. sufreak says:

    Even without a 2.15% interest rate, their site provides such a great service. It has made my budgeting so much better.

  3. edosan says:

    I you missing words article.

  4. Epsilon748 says:

    Looks like the jumbled “cuts” out of the first sentence up to your article title.

  5. Thyme for an edit button says:

    I like the set up on their site and the rate is still good so I plan to stick with it.

    • sufreak says:

      Its banking done smart. Work with people. Why just have a ‘christmas club’ when people need to save for various things.

  6. Joewithay says:

    Well it doesn’t beat my former Sovereign bank HSA interest rate cut. It went from 2.00% all the way to just 0.25%

  7. holocron says:

    Blame Lifehacker….they just did an article on it in the last few days….

  8. Sarah of Get Cooking says:

    This post makes it sound like the rate on $50k is still 2.15%, it’s actually a much lower rate than either of the rates figured here. So actually it’s worse to have $50k in smarty pig, which isn’t what one would think reading this post.

  9. jdmba says:

    What’s smartypig?

  10. jeffbone says:

    In addition to the rate cut, I now have a message in my Smarty Pig account indicating that interest is both compounded and paid quarterly. In the past, I thought interest was paid quarterly, but compounded daily. If there really was a change in compounding, then this rate cut is more than it appears.

    Disclaimer: after years of reading Truth in Lending and Truth in Savings disclosures, I’m (obviously) still a little foggy on the difference between APY and APR.

  11. Bugley says:

    Update: Down to 1.35% now. :(

    And they didn’t announce it until the afternoon of the day the new rate went into effect. So that’s technically a retroactive rate change, right?

    Well anyway, I think I’ll keep using SmartyPig. It’s helped me to switch from using credit to pay for holidays/birthdays/anniversaries/vacations to using saved-up cash. And boy is that a good feeling (so long as I don’t succumb to using credit in ADDITION to the saved cash).