I’m Breaking Up With SmartyPig

If you didn’t know, I have been a big fan of SmartyPig for quite awhile now. They’ve had great rates, which is the main reason I signed up. They had rates about .70 percentage points higher than other banks. I also occasionally put some money on Amazon gift cards because when I had some larger purchases, a free 4% bonus never hurts!

There are some drawbacks, however. It takes awhile to withdraw money, they have some weird rules like having to close a goal before withdrawing money and having to make regular contributions toward a goal. It’s a little hassle, but for the good interest rate, it was worth it, right?

Well, SmartyPig used to have good interest rates, but recently they’ve made some changes. Effective June 15th, SmartyPig will be decreasing their rates to 1.10%, over 1 percentage point less than the 2.15% Smartypig raised their rates to just a year ago.

Suddenly, SmartyPig is looking more like a hassle than anything else. Instead of being able to offset the negative aspects, the negatives outweigh the positives at this point. I hated waiting so long for my money to be withdrawn (about 10 days) and now 1.10% is barely higher than my other alternative, putting it in my ING savings account, which gives 1.00%.

The ING account is linked to my checking, so depositing and withdrawing money can happen instantly. No waiting, no hassles. It’s great!

I knew that I shouldn’t stuff every cent into my savings, and this is simply an extension of that. Small, temporary gains, aren’t worth the hassle!

I’m out of SmartyPig, are you?

14 Responses to I’m Breaking Up With SmartyPig

  1. I used to feel guilty for not using SmartyPig, I envied the fat interest rate but couldn’t get past the hassle. Now I don’t have to, but it’s sad to have yet another low interest option.

  2. RT says:

    I dumped SmartyPig about 6-9 months back. They were just not providing enough incentive to continue to use them in addition to my other savings account.

  3. I have two accounts for savings, one is ING and the other is an Ally Demand Notes account that pays 2.25% but is not FDIC insured. This has worked out for me. I’ve never been part of Smarty Pig though I saw alot of hype in the blog world a while back. I agree that chasing rates simply isn’t worth it.

  4. No Smarty Pig for me. Just the convenience of ING

  5. Evan says:

    Never joined SmartyPig – I didn’t believe the extra point would lost (and I guess I was right, but thought it would go away much sooner) and that extra point wasn’t going to do much to the bottom line that much so that hassle just didn’t seem worth it

  6. Leigh says:

    I’m a SmartyPig user and was disappointed to see the recent rate cut. I’ll continue with my existing goals, but will look for alternatives for short term savings.

    I’m disappointed. It’s as though they are more interested in my trading cash for Amazon gift cards than about providing a good interest rate.

  7. never used em. 95% of my cash is in 5-7 yr CDs. Each bonus, it’s just socked away. Those rates are at 3%+.

  8. I had been considering saving with smarty pig instead of ING, but after this rate deduction, it’s not really worth it. ING is all set up and it works just fine.

  9. 20 and Engaged says:

    I got that e-mail too and was quite upset. I was using the account as my emergency fund for a while, and also hated the fact it took so long to withdraw (closing my goal, etc.) I’m thinking of closing my account too and looking into ING direct.

  10. I started with them in 2009 and broke up with them in 2010 when the hassle just didn’t make up for the slightly higher rate than ING. I am still a big ING fan though – been a happy member for 7 plus years now.

  11. Brian says:

    I will probably go back to ING. SmartyPig is fun for what it is, but dropping their rate doesn’t make me happy.

    As others have said, ING is just so easy to use.

  12. Darwin's Money says:

    Good for you! I get pissed at banks that try to lure new clients by offering an above-market rate only to drop it shortly thereafter. It’s a crafty customer acquisition scam. Some do it the old-fashioned way with advertising, good service and word of mouth. Others do… this.

  13. Aaron says:

    We like SmartyPig, but this will definitely give us reason to consider switching.

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