High Yield Online Savings

A website that I trust and recommend for a high yield online savings account is Smartypig.com. The current interest rate is 1.25%. Rate are subject to change based on your account balance.

According to the website:
If your daily balance is more than $0 but $2,500 or less the interest rate paid on the entire balance in your account will be 1.24% with an annual percentage yield of 1.25%. If your daily balance is more than $2,500 but $10,000 or less the interest rate paid on the entire balance in your account will be 1.14% with an annual percentage yield of 1.15%. If your daily balance is more than $10,000 but $50,000 or less the interest rate paid on the entire balance in your account will be 1.00% with an annual percentage yield of 1.00%. If your daily balance is more than $50,000 the interest rate paid on the entire balance in your account will be 0.95% with an annual percentage yield of 0.95%

How SmartyPig Works
By allowing individuals to create multiple “piggy banks” designed to meet user defined savings goals, SmartyPig has given birth to a unique and innovative way of eliminating temptation. By using SmartyPig, you will be able to see your progress toward goals. For those wanting to learn proper money management practices, this is a huge step. Having multiple savings accounts is actually a taught business practice and personal financial tool. In essence, this is what SmartyPig does. 

After setting up an account, you are taken to a section where you create your own personal savings goals. Maybe you are trying to expand one of your website by outsourcing some of the content creation? You would create a goal for this. You can have as many active savings goals as needed – although you should probably have no more than three at a time (when starting out). You name each one and define all goals, including amount of money and a date when you would like the goal to be achieved. 

Next, you would assign a contribution schedule: weekly, bi-weekly, monthly, etc. What this will do is give you a plan for achieving your goal. Remember, a plan is essential in business. While you could do this all yourself through spreadsheets and numerous savings accounts, SmartyPig conveniently puts the whole process in one place. This will save countless hours of budgeting and work on your part. 

Furthermore, you can even allow others to contribute towards your goal. This is not really helpful for business purposes but is great for fundraisers. 

My favorite thing about SmartyPig is the powerful tracking features this website offers. Seeing progress toward a goal will keep you motivated. I cannot overemphasize the importance of tracking a goal. If you do not track goals, you have no way to see your progress. This can lead to a sense of insecurity because it will feel as if you are accomplishing nothing at all. 

Also, SmartyPig uses BBVA Compass Bank to store all funds. So your money is FDIC insured. 

If you’re worried about redeeming your money then there is nothing to worry about. You can cash out just as you would with a normal savings account. SmartyPig does offer the option of using your savings to purchase discounted gift cards. In reality, the ability to set and maintain goals is the only advantage you will need. 


Getting Started with SmartyPig

Setting up an account with SmartyPig is actually easier than a conventional bank account. Better yet, it can all be done from the comfort of your own home.

Step 1

Visit www.smartypig.com and choose Create an Account. 

Step 2

Prepare the required information. You will need to provide:

- Your Full Name

- Address

- Government Issued Identification

- Bank Account Information. (You need to have at least one bank account in order to use SmartyPig.)

Note that it takes up to four business days to verify your bank account. 

Step 3

Once your account is verified, you can transfer money to and from SmartyPig. This completes the setup process. 

Once you have set up an account, go ahead and create a savings goal. You can always edit it at a later date so go ahead and learn to use the system. Don’t be afraid to play around with the interface to get a handle on how to use it.