Comments on: Some Notes on SmartyPig

By: almost there

almost there — Fri, 29 May 2009 18:58:22 +0000

I set up a couple smartypig accounts. It has a 3 star rating in bankrate. The 3.05% apy is better than any other listed in bankrate for a regular savings acct. I had to set a goal of a little over 14k to equal a hundred dollar deduction from my checking account/month (based on current apy). If one wants to get the money they can cancel the goal and have it sent back to the funding account. Or, if one puts additional money in, they can meet the goal early and just let it sit there getting higher interest compared to most other savings accounts. Capital One was getting about 6% last year when I joined and now it is down to 1.85%apy and that is with a 10k minimum to join.

By: Cliff

Cliff — Mon, 13 Apr 2009 03:10:21 +0000

If you are looking at SmartyPig as an emergency fund account, might I suggest this strategy. First get a good credit card with balance that will handle most situations. Second, setup this account to hold money for spending goals. Third, if something happens, use the credit card to pay for. Stop the goal you have setup and transfer the money out to pay the credit card. Not a hard concept to use.

As for the saving for items part not being for adults, this is far from the truth. Nothing like seeing next years vacation pig get a nice shade of pink. Reminds me more and more each month that vacation is getting closer. Ok this could be a bad thing, but it is nice to see.

By: Debbie M

Debbie M — Mon, 13 Apr 2009 00:04:57 +0000

At first I thought this wasn’t for me, even though the interest rate is relatively good. Most of my savings goals don’t have an amount or a deadline, such as housing repairs, car repairs, next car, and vacations. I do put in a certain amount each month, but then I take money out whenever there is a need or good opportunity, and then I don’t want to have to close the whole goal to do that because I want to keep saving for the next repair, car, or vacation.

However, I just decided to take over my escrow account from my lender, and so two perfect goals would be this year’s property tax and this year’s homeowner insurance.

That helped me realize that some other good grown-up goals I could add are car insurance and flood insurance.

And although I don’t know exactly when I’ll want my next car or exactly how much it will cost, this is still a good Smarty Pig goal because it is a thing I want to buy and they don’t make you close your account when you meet your monetary goal. I could easily estimate a date (ten years since I bought my last car) and an amount (my current monthly savings rate times the months remaining.) And then I could close the goal when I buy a car and open a new goal for my next car.

I don’t have any use for the social component. And I haven’t thought up a use for the gift card component (my Amazon, Home Depot and LLBean goals are usually quite tiny and don’t require saving up for months).

By: Regina

Regina — Tue, 24 Mar 2009 13:26:15 +0000

I am still in the process of researching smartypig- I have 2 ING accounts, one for myself and my husband, and one for our 2 year old son- but when I saw the interest rates on SmartyPig are 3.5%, compared to 1.5% on ING Direct, I’m thinking it might be worth a switch!
Will keep thinking it over though…..

By: KEITH

KEITH — Thu, 19 Mar 2009 15:38:17 +0000

I OPENED AN ACCOUNT AND THIS WAS HORRIBLE! I ACCENTALLY SET MY GOAL FOR $4000 A MONTH TO BE TRANSFERED OUT OF MY SAVINGS INTO THE SMARTY PIG ACCOUNT. THEY WOULD NOT LET ME CHANGE IT BECAUSE I HAD A PENDING TRANSACTION!!!! SO THE $4000 TRANSFER WENT THROUGH CAUSING MY REAL SAVINGS TO BE OVERDRAWN. I WENT THROUGH THEIR MANAGEMENT AND WESTBANK TALKING TO TIFFANY AND GOT ABSOLUTELY NO WHERE. NO I AM TRYING TO CANCEL MY ACCOUNT AND GET ALL MY MONEY BACK, AND THEY ARE MAKING ME WAIT 10 BUSINESS DAYS TO DO IT. THIS CONCEPT MAY SOUND GREAT, BUT IF YOU ENTER THE WRONG INFORMATION IN YOUR GOAL, YOUR TIED TO IT FOR WEEKS. YOU CAN NOT CHANGE IT OR CLOSE IT AT ANY TIME LIKE THE WEBSITE SAYS. THE SMARTY PIG WEBSITE IS TRULY LIPSTICK ON A PIG.

By: marji

marji — Sat, 13 Dec 2008 11:51:12 +0000

Smarty Pig is a wonderful way to save. Not only is the interest rate very competitive, but the automatic transfer feature makes saving money almost painless.

Trent, help me understand why you said Smarty Pig isn’t well suited to goals like an Emergency Fund. Thanks!

By: Nina

Nina — Thu, 28 Aug 2008 00:32:59 +0000

And I just wanted to add that I somewhat lament that my daughter is just two years old. Not old enough for me to get her involved with Smarty Pig!

Also, please forgive my grammatical errors….I forgot to proof my comment above! :)

By: Nina

Nina — Thu, 28 Aug 2008 00:30:27 +0000

I’ve spent a bit of time this evening researched online banking interest rates. Having read about Smarty Pig, I have to say that I think it’s a great idea! Yes, it’s a wonderful idea to teach children the concept of saving, compounding interest, delayed gratification, etc.

But, I don’t think children are the only ones who need that lesson! Look at the state of the economy….too many people have way too much debt because they buy things they can’t afford. Maybe if they had decided to save up for things instead of charging them, people wouldn’t be so broke as not to be able to afford they mortgages…

By: Johnny T.

Johnny T. — Tue, 17 Jun 2008 20:57:19 +0000

And, by the way, all mine are private, so I ask nobody to help with my savings goals. It’s just particularly nice to have the money whisked away from my ING account, because even if I’ve put money in savings there, I can *very* easily transfer it back to checking in an instant. Using smartypig means it will take several days to get that money if I need it, so I just as soon leave it and let it accumulate.

By: Johnny T.

Johnny T. — Tue, 17 Jun 2008 20:55:17 +0000

I use Smartypig and I love it. It is a nice way for me to get money out from my checking account into things I’m saving for anyway. I have one for each of my sons that I put a bit in every month. The savings goal is 17 years away @ 25 bucks a month…This is for their college expenses. I really like this becuase $25 a month is not painful at all, and it gets me saving for the long run…at the end each will have over 7 grand in them. So, no, i disagree that it is purely consumeristic. People spend money on lots of different things, and it *makes* you commit to saving. They should get rid of all the fees, IMHO, as I’m sure they’re making more than eight percent holding the saved money out as it is. Just my two cents.

By: Tina

Tina — Fri, 28 Mar 2008 14:44:50 +0000

While it’s a potentially great idea, especially for “occasions” and big events, even saving for a volunteer trip, etc, I have to say the name put me off right away.
Someone mentioned the word ‘greedy’ in an earlier post. That connotation, to me, is inevitable with a name that includes the very symbol of greed: pig! ‘Smarty’ makes it even worse: this greedy pig is also clever enough to trick you out of your money!
I’d be too embarrassed to ever ask anyone to contribute money for me in an account with a name like that!!

By: Dana

Dana — Thu, 27 Mar 2008 15:43:36 +0000

Well, if Smarty Pig doesn’t shut customers down on account of poor credit, that’s one thing they’ll have over ING.

(I kid you not. All I had with ING was a couple of savings accounts and they closed ‘em last year, citing my credit report as the reason. I think I also made too many withdrawals in one month, but that’s not the reason they explicitly spelled out to me.)

By: Anne

Anne — Thu, 27 Mar 2008 00:24:10 +0000

Gift cards can already be purchased at a discount on eBay. So no need to game the SP system for an extra 5% back at Amazon.

I really, really do not see the point of SP.

By: kentuckyliz

kentuckyliz — Wed, 26 Mar 2008 14:23:31 +0000

Social networking/fundraising would also be good for people who are trying to clear their debts to enter religious life. I have contributed in the past to those goals…if someone is willing to give up everything to enter religious life as a sister, nun, brother, monk, or priest, and the only thing holding them back is that last little bit of college student loan…well, if they’re working and trying hard to pay it off, then I have no qualms about donating to help accelerate their entry into religious life.

Whether to use smartypig or not, I’m not sure. What other ways are there to do it? Blogging with a PayPal donation button? I don’t think that costs anything. Perhaps smartypig’s restrictions are to increase confidence among donors.

My nieces and nephews are always asking for birthday and Christmas presents that are way beyond anyone’s budget to buy them. But if they set up a public saving account, I would contribute to it as my gift…if they really wanted that thing, then a donation to help make it happen would make them happier than whatever lesser gift I would get them.

I also like the idea of creating interfaces so that anyone could contribute to a kid’s ESA/529.

Here’s another great idea, raise money to start a RIC-E trust for a baby, and secure their retirement forever. http://www.ricetrust.com Very cool concept.

By: Colleen Costello

Colleen Costello — Tue, 25 Mar 2008 19:21:32 +0000

This would be nice for kids to have IF they could exercise the proper restraint. For example, if Grandma says she WANTS to contribute to “the cause,” the child could inform her how easy that could be using the SmartyPig account… However, if the existence of said account means the child starts shaking down relatives for money, then I think this is BAD.

I am a fan of Judith Martin, aka Miss Manners, and she is completely against the practice of inviting people to “contribute” to something you are saving for. I could see this type of account being used as an excuse to bother family and friends about “making a donation” instead of saving your own money for a desired item.

By: CyanSquirrel

CyanSquirrel — Mon, 24 Mar 2008 21:00:19 +0000

The SmartyPig fee structure strikes me as just a way for the owner of this site to take little bites out of other people’s savings to supplement his own income. I won’t be using it nor will I encourage others to use it. $4.95 a month (or year), charged TO THE SAVER (not the contributors) would be a little more tolerable.

By: Michelle

Michelle — Mon, 24 Mar 2008 18:05:24 +0000

This looks like a nice alternative to honeymoon funds run by travel agencies and such. The couple could receive gifts without locking themselves into a specific service provider.

By: Carson

Carson — Mon, 24 Mar 2008 15:57:59 +0000

I am of the FatWallet crowd, and like to maximize my money. Could you use it to just put money in and take out. Like say for college books. Could you put you needed $500 by the next month, put in 500 then turn around and get an amazon card for 525? If you could do that it would be more useful to some.

By: Tom

Tom — Mon, 24 Mar 2008 15:45:35 +0000

The SmartyPig team said they will be restructuring their entire fee system in the next coming weeks. So we should all hold our fee comments until after the restructuring.

Minus the fees, SmartyPig offers consumers a great way to budget and save for specific purchases. Eventually every household will buy an item costing over $250 (SmartyPig minimum). This service is a great way to achieve that $250 goal in a planned, consistent manner. You are also making an extra 4.3% APY that is calculated into your monthly contributions.

Once the fee schedule is worked out, SmartyPig will offer consumers a very unique way to save and raise money. In the comments alone there have been many unique ideas:

~Wedding Registry
~Personal Goals
~Community Fund Raising
~College
~Savings Education for Children

This service isn’t limited to saving money to buy “stuff”. The SmartyPig team has setup the social savings account framework, it’s up to you how to use it. Be creative!

By: Michael

Michael — Mon, 24 Mar 2008 14:00:08 +0000

It is rude to ask guests for money.