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Online Banking
- Most flexible online banking Bank of America *Est. $0
- Best online checking account Schwab Bank High Yield Investor Checking *Est. $0
- Best online savings account FNBO Bank *Est. $0
- Online savings for special occasions, events SmartyPig *Est. $0
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Online savings for special occasions, events
- High interest on savings
- Helps save for specific purchases
- Social networking for encouragement
- Bonus percentage at retail partners
- Requires automatic monthly deposit
- Withdrawals sent by postal mail
- Bank-to-bank transfers limited to $1,500 per day
- For purchases, not emergency savings
SmartyPig, an online savings plan offered in partnership with West Bank, offers online savings accounts that pay a competitive rate of interest. What makes SmartyPig special, however, is that it's designed to help users avoid credit card debt by saving for big items instead. (The minimum savings goal is $250.) Each savings goal requires a separate SmartyPig account, funded by an automatic monthly direct deposit (though you can add other deposits any time). SmartyPig also integrates social networking, by letting you share as much of your goal and progress as you choose, with people you invite. Reviewers note that withdrawing money in the form of a debit card, check or gift card can take over a week. For emergency savings, reviews suggest an online savings account at FNBO Bank.
We found the most credible reviews of SmartyPig in articles at Forbes.com and at The Wall Street Journal. BankRate.com gives a Safe and Sound rating to the parent bank, West Bank. SmartyPig has gotten extensive notice in financial blogs. A review at MyMoneyBlog.com provides more details than most, and a review at The Daily Pennsylvanian blog The Bottom Line is one of the most current.
Our Sources
This detailed review discusses SmartyPig savings accounts, explaining that the high rate of interest is offered because most users schedule goals that take about three years to reach.
Review: Web Resources For Tough Times, Anna Vander Broek, Feb. 25, 2009
This review discusses SmartyPig as well as several other online banking services. SmartyPig adds social-networking features to a plan that emphasizes savings goals.
Review: Putting Your Money Where Your Mouse Is, Joseph De Avila and Jane J. Kim, Dec. 17, 2008
3. Bankrate.com
West Bank, the parent bank of SmartyPig, earns a three-star rating (out of five) here. The ratings use data gathered before the financial crisis picked up steam, so the ratings may have changed, but this still gives some basis for comparison.
Review: West Bank, Editors of BankRate.com, Sept. 2008
This well-illustrated review explains the details of how SmartyPig works, noting improvements in the terms since it first began. You get a bonus percentage if you withdraw your money as a gift card rather than cash.
Review: SmartyPig Review, Editor of My Money Blog, April 2008
This recent but brief review of SmartyPig praises its high yield on savings, noting that one of the retail partners is Amazon.com. The blog is part of the student newspaper at the University of Pennsylvania.
Review: Untitled, Editors of The Daily Pennsylvanian, April 4, 2009
Online Banking Runners Up:
5 picks by top review sites.
4 picks including: Bankrate.com, Forbes…
4 picks by top review sites.