I've talked about the benefits of an ING Orange savings account and one of its biggest appeal was the high-yield savings rate. Well, ING's interest rate right now is currently 1.1 percent, a far cry from its 4 percent back in spring of 2006. Don't get me wrong, ING still has its positives like having no fees, no minimums. and a user-friendly interface. Rates generally go down when market conditions are tough.
I started looking for another no fees online savings bank and recently turned my eye towards SmartyPig. To find out what I learned, read more.
There is a slight difference — a minimum deposit of $25 required and a $10 required monthly contribution. However, SmartyPig's APY (as of now) is at 1.75 percent for balances less than $50,000. Users can create savings goals that range from a minimum of $250 to the maximum of $250,000. This online piggy bank has a social aspect to it as well, you can invite friends and family to contribute to your saving goals and choose to automatically post your progress on Facebook and Twitter.
I think one of the great perks of SmartyPig is that when you reach a saving goal, you can either shuttle the money back to your bank account or redeem it through gift cards from SmartyPig's retailing partners. The best deal seems to be with Macy's — they'll give you 12 percent additional cash increase on your total savings.