Money Matters Monday: Savings Solutions & SmartyPig

I'm testing a new "day of the week" that needs to be prioritized in my life:  Money Matters Monday.  I know--it doesn't exactly offer the thrill of a zip line through the Amazon, but money woes can upset your stomach like a 50 mile rollercoaster on steroids over Lake Erie, so buckle-up and maybe you'll find something interesting :)

I don't know about you, but I'm terrible at saving money lately.  To add to my money-saving woes, my bank recently implemented new fees that are withdrawn if you don't carry certain balance minimums in your accounts.  New fees fueled new anger, so I quickly closed my savings account, only to move my savings into my checking, which resulted in *unintentional* spending of my savings! 

So, I began searching for:  a) a higher than average interest yielding account, b) a no/low-fee account, and c) an account that is easily accessible, yet difficult enough to discourage needless withdraws of money.  I found this with SmartyPig, so now I'm going to be your guinea pig :) 

Currently, balances under 50K {over?--only in my dreams!} earn 1.10% APY with a minimum $25.00 initial deposit and a minimum of a $250.00 goal. 

What is a goal, you ask?  SmartyPig is savings for goals, so each account sets up certain goals to save for {I don't believe there is a limit to the amount of goals you set}, over a set period of time.  Once you reach your goal, you can withdraw your money, or let it stay in the account an accrue more interest. 

SmartyPig deposits your money in BBVA, an FDIC insured bank, in your name.  You can withdraw your money using gift cards, money/debit cards, or placing the money back into your originating checking/savings account. 

How do they make their money?  Mostly by customers redeeming gift cards at various businesses.  I don't see any secret fees as of yet, but I've only made a small deposit with a short-term goal.  Once the goal is reached, I'll see if there are any hidden fees by closing out my goal.  There you go--you're very own money guinea pig! 

Here's what they have to say for themselves:

Michael Ferrari, of www. smartypig, a social banking website aimed in part at 25-to-35-year-olds, said the average savings goal is $5,000 and about 70 percent of customers reach the goal. SmartyPig’s intent is to help people save for specific goals, from a home remodeling project to a flat-screen TV, and it recently launched a mobile application for smartphones that automatically posts updates on Facebook and Twitter every time users put money aside for their goals.

Now, I'm not opting for the publish sharing of my balance/goal, or for contributions, so you'll have to check that out for yourselves if you decide to.  Otherwise, watch my blog and wait to see if I reach my goal and how it works best!