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 I hated waiting so long for my money to be withdrawn (about 10 days) and now 1.10% is barely higher than my other alternative, putting it in my ING savings account, which gives 1.00%.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?