SmartyPig Supports Customers With Much Needed Interest Rate Boost

DES MOINES, Iowa, April 19 /PRNewswire/ -- According to the Pew Research Centre, the financial crisis has brought about a "new creed of thrift" with personal savings once again on the rise. However, as interest rates on savings accounts have steadily decreased since 2008(1) and credit card interest rates are at their highest since 2001(2), consumers eager to get their finances on track again are at a disadvantage. In support of consumers committed to saving up for their goals and ridding themselves of the "buy now, pay later" mindset, SmartyPig today announces it is increasing its APY for all customers with balances of less than $50,000* to 2.15  percent beginning May 19, 2010.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20090903/SF70289LOGO-b)

SmartyPig is a consumer finance site where individuals and families can earn high interest on their savings goals while receiving cash back rewards when they make a purchase. With tools that help manage progress, SmartyPig offers a smart, simple and secure approach to saving for a specific goal like a honeymoon, home remodel or a new iPad by offering additional incentives like cash boosts of up to 12 percent from best-in-class retail partners such as Best Buy, Home Depot, Travelocity and Macy's.  

"With credit card issuers expected to raise interest rates to 16 or 17 percent by the fall(3), we believe it is important now, more than ever, that consumers adopt responsible financial habits," said Bob Weinschenk, chief executive officer, SmartyPig. "Which is why we firmly believe in rewarding customers who want to save and spend smartly, and give them the opportunity to get ahead again and stay there."

To date, there have been more than $400 million in goals created and $150 million in goals reached in the U.S., which is why SmartyPig is able to reward its customers with a total goal balance of $50,000 or less with the nation's highest savings rate(1). Customers with a total goal balance of $50,001 or more will begin earning an APY of 0.5 percent the same day.

As SmartyPig automates regular deposits from a customer's existing checking or savings account into their FDIC insured SmartyPig account, the company is alerting all customers 30 days before the rate increase goes into effect in compliance with all bank regulations. Customers will receive notice via email today and will see the change made to their accounts beginning on May 19, 2010. To learn more about SmartyPig's tiered interest rate program, please visit the blog at http://blog.smartypig.com.  

ABOUT SMARTYPIG

SmartyPig is a consumer finance site where you can earn high interest on your savings goals and get cash back when making a purchase with premium retailers and top travel companies, all while never relying on credit cards. Family and friends can also help achieve financial goals by securely contributing to your account via social networks like Facebook. Launched in April 2008, SmartyPig has proven extremely popular with consumers throughout the country. The system is based on proprietary, patent-pending technology and features the latest in security standards. SmartyPig's U.S. banking partner is West Bank, a subsidiary of West Bancorporation, Inc. All funds are held in West Bank and are FDIC insured up to the applicable legal limits. SmartyPig is based in Des Moines, Iowa. For more information on how to get started, please visit http://www.smartypig.com and follow us on Twitter: www.twitter.com/smartypig.

*Effective May 19, 2010:

• Interest rate earned on balances $1 - $50,000 will earn 2.133% (2.15% APY)
• Interest rate earned on balances above $50,000 will earn 0.499% (0.50% APY)

For purposes of calculating the rate tier that applies, total balances of all goals within a customer's SmartyPig profile will be aggregated. The interest rate and APY are variable and subject to change after account opening. Fees may reduce earnings.

SOURCE SmartyPig