Smarty Pig 3.05% APY Online Savings Account
Smarty Pig is currently offering an online savings account with an APY of 3.05%. Smarty Pig has been offering some of the best savings rates in the country for several months now, so this consistency speaks well to how the rate will most likely hold up over time. However, this great rate comes with a few catches as this is not a typical savings account.
You’re allowed to deposit between $25 and $50,000 and you must set a savings goal between $250 and $250,000. In order to achieve this goal you must set up automatic transfers into your account of at least $10. You’re allowed to deposit up to $50,000 in any 24 hour period. You may withdraw your money when you either reach your goal or terminate your goal, but you must withdraw all your money if you’re terminating your goal. You can’t do a partial withdrawal. The idea of the account is to help reach savings goals, although I would set a goal that you’re confident you can reach (that you already have funds for). If you’re opening an account for a 529 college savings plan you can use our college savings calculator to calculate your total savings.
One good idea is to just set up a series of mini-goals. That way your money can become more liquid. There’s no hard credit pull when you open an account which is a nice bonus.
West Bank, the FDIC institution that actually holds the funds for Smarty Pig deposits, has a 3 out of 5 star soundness rating from bankrate. if you save for retirement this account is a great option.