SmartyPig Account – Interest Rates, Features, and Benefits.
SmartyPig Account: Do you want a simple savings product that pays a good interest rate,? Are you in need of a product that allows you to set goals? Do you want a product that can be used without a lot of hassle? SmartyPig is a contender for this target audience. It is the online only savings account product of Sallie Mae Bank.
Smarty Pig has a high yielding savings account interest rates. Also, it offers excellent rates. It is one of the high yield savings accounts. Additionally, it has always led the way with top interest rates. Keeping with that trend, it offers a great interest rate.
This makes it worth considering for your new savings account. SmartyPig typically offers four tiers when calculating interest for its consumers. This is based on the average daily balance on the account. However, it fluctuates between offering the same interest rate.
What is SmartyPig?
SmartPig was created in 2008. It allows savers to set up online no-fee savings accounts. Thus, all the accounts are insured by the FDIC. The current SmartyPig online platform is a trademarked product of Q2 Software Inc. This provides digital banking solutions for thrift institutions.
Q2 announced its partnership with Sallie Mae on Dec 14, 2016. This led to replacing an earlier online platform. When you sign up with SmartyPig you get a primary account. This account that accepts deposits and withdrawals online. Also, you are required to identify one external funding source.
SmartyPig will verify this by making deposits. You can then choose to open savings goal sub-accounts. This one is for specific purposes. It helps you transfer money to/from the primary and goal accounts. You can set (and change) time deadlines and savings amount targets for each goal sub-account.
Requirements for Setting Up SmartyPig Account
Applying for a SmartyPig primary account is easy. Below are some of the requirements:
You must be at least 18 years old.
Also, you must have an existing checking or savings account.
Additionally, you must have legal U.S. residency status. This is either as a citizen or permanent resident. This should come with Social Security number.
It is important you know this. The online process takes only a few minutes. You’ll be asked to give personal information. This includes your Social Security, driver’s license, and external account numbers.
Opening Up a SmartyPig Account
The process to open up a SmartyPig account takes few minutes. You’ll need your personal information. This includes social security number and a cell phone. Additionally, plus a few moments to complete a three-step online application. The steps goes thus:
Create your login details and enter your cell phone number.
Verify your cell phone number. This is done by using the 4 digit code SmartyPig will send you. Please note. The stated timeline to complete this step is 14 days. This is before your account will be closed.
Verify your identity. This is by entering your personal information and answering four security questions.
After these steps have been completed, you’ll have your very own SmartyPig high yield savings account. The last thing to do is verify your email address. This is required after your account is active. However, this is before you can set up an external funding source.
Using Your SmartyPig Account
While using SmartyPig account, it verifies your external funding account. It does this by making two small deposits into the account and a debit to reclaim the money. You are notified via email when the money is deposited. After which you have two weeks to verify the deposit amounts with SmartyPig.
Once your SmartyPig account is verified you can begin depositing money. You can also set up a direct deposit from your paycheck. This can be done on a bi-weekly or monthly basis.
The funds you contribute to your savings account are held for five business days. This is before they are released. Once released, you can transfer funds freely to any of your goal sub-accounts.
SmartyPig pays interest from the first business day on which your deposit is received. The current interest rate structure is:
1.05 percent APR on balances of $0.01 to $10,000.
Also, it has 1.15 percent APR on balances above $10,000.
Please take note. The maximum savings account size is $250,000. Also, interest is compounded daily and posted monthly. Additionally, you receive full daily interest on your funds. This is until you withdraw them, even mid-month. You are limited to six monthly withdrawals from each of your goal sub-accounts and your primary account.
It is important you know this. Overdrafts are not usually honored, but might be allowed at the discretion of SmartyPig. However, it may involve fees. SmartyPig pays a $10 bounty for each successful referral you make. This does up to a limit of $1,000. Also, you may withdraw funds directly to your external funding source.
Additionally, you may use the money to buy Amazon.com gift cards. This is once your account has been open for 60 days. At one point it appears that discounts were available when you bought gift cards. However, the current Terms and Conditions makes no mention of these discounts. You can withdraw a maximum of $50,000 a month.
Unique Features of SmartyPig
The following are some unique features of SmartPig account:
You can name a joint account holder and/or a beneficiary. Naming a beneficiary makes your account a Payable on Death account. This allows your money to be distributed without undergoing probate.
Also, another unique feature is its social sharing platform. This allows you to announce your savings progress. Additionally, it allows family and friends to contribute to your account.
In a Nutshell
From the foregoing, it is important you know this. In general, SmartyPig offers higher rates than those available at brick-and-mortar banks. However, not the highest among online banks.
It uses a friendly online portal with the ability to manage your primary and goal accounts. SmartyPig appears to be a good way to get you into the savings habit.
Also, its no-fee structure is easy on your wallet. As such, you may want to consider this option and see if it is worthwhile.