BOSTON, April 4, 2012 /PRNewswire/ -- SmarterBank™ announced today the launch of a new checking account that earns free rewards that help pay down any student loan. Designed for anyone with student loan debt, SmarterBank offers a full-featured online checking account that is accompanied by a revolutionary rewards program, called SmarterBucks. This program automatically makes extra payments to the principal of any student loan, saving borrowers hundreds or even thousands of dollars in interest over the life of a typical loan.
"Total student loan debt currently stands at $1 trillion and growing. Add to that a poor job market and it paints a challenging picture for graduates and our society as a whole," said Kevin Walker co-founder and CEO of SimpleTuition, the company behind SmarterBank. "Since 2006, SimpleTuition has helped millions of families save on the cost of college and make smarter financing choices. But now students and graduates also need tools to help them manage and pay down their debt. We built SmarterBank as a revolutionary way for students and graduates to start chipping away at their student debt."
SmarterBank offers a full featured online checking account – online banking, online bill pay, and a SmarterBank Visa® Debit Card – with no monthly fee for active accounts. On top of that it offers a network of over 40,000 free ATM's nationwide and the security of FDIC insured deposits. Many banks tout low fees, but SmarterBank is straightforward and transparent about their fees, helping account holders clearly understand what they are and how to avoid paying them.
SmarterBank's free SmarterBucks rewards program is what sets it apart from other checking accounts and debit card rewards programs available today. There are no limits or expiration of rewards and redemption happens automatically as extra payments are made for any student loan the account holder chooses. Rewards are earned from everyday purchases using the SmarterBank Visa® Debit Card. Additional rewards will soon be earned from an extensive network of leading merchants. And friends and family can also make contributions directly to a users' rewards account to help them pay down their student loans faster.
"For college students, graduates, parents or anyone with education debt, the best way to pay off their debt faster is to pay down their principal and avoid paying interest. This is what SmarterBank and SmarterBucks do. Even an extra $15 per month can save a borrower thousands and pay back a typical loan several years early," continued Walker. "Many people forget that the interest paid on student loans is actually part of the cost of an education. Graduating with $30,000 in student loans is daunting, but remember it could cost as much as double that before those loans are paid off."
SmarterBank is a new online checking account designed to help the millions of people with education debt. SmarterBank account holders earn free SmarterBucks rewards which automatically make extra payments on any student loan. Banking services for SmarterBank are provided by The Bancorp Bank, member FDIC. SmarterBank was developed by SimpleTuition, which has helped more than 10 million families afford higher education. SmarterBank and SimpleTuition are headquartered in Boston, Mass., and backed by Atlas Venture, Flybridge Capital Partners, and North Hill Ventures. For more information, visit SmarterBank.com.