The Best Savings Account

For any money you may be putting into a savings account, there is only one great bank for this in my mind. That bank is an online bank called SmartyPig. SmartyPig has boasted the highest savings rates for a long time now. During the peak of savings rates it was above 6 percent. These days, with the horrible economy and near zero government interest rates, there isn't too much interest out there anywhere, but SmartyPig still leads the way with 2.01 percent interest compounded quarterly. Even most CD's have trouble matching SmartyPig rates. You may find slightly higher rates advertised at a few random banks, but those rates always come with catches. They may just be introductory rates, have high minimum balance requirements, or require direct deposits and frequent debit card use. SmartyPig doesn't have any catches and only needs a minimum balance of $25 to open. There used to be a required monthly deposit, but that is now even optional. Now there is no reason not to use SmartyPig as your savings account.

The only difference between a savings account at a physical bank and one on the Internet is that you will still need a checking account at a regular bank anyway. You will need to deposit your money into the checking account and transfer it to the Internet account. Transfers take just two business days. Since this is the Internet age and it is quite easy to link the accounts together, I don't even really see this as a barrier.

There are other SmartyPig perks to go with the high interest rates as well. There are cash savings boosts with numerous retailers that can get you up to 12% back with purchases. So if you want to spend $100 at Macy's, then you can buy a gift card for $100 through SmartyPig and automatically get $12 put back into your account. If you don't want to do that you can always just put your balance on a debit card or transfer it back to your checking account. There is also a way to use your account on social networking sites. You can use pre-made widgets on Facebook, Myspace, or your own website that show your saving progress and can accept donations from friends and family. This is optional, but can add a whole new dimension to your savings potential. SmartyPig doesn't slack on the extra features either. You can find plenty of ways to view your savings data through text and graphs to see how much you have really saved over time and where every penny came from.

If you are saving money, make sure you are saving the smart way with SmartyPig.com.