May 25, 2009 5:45 pm US/Eastern
'Smarty Pig' Web Site Helps Consumers Save
PITTSBURGH (CBS) ―
People are saving more money these days.
But with some big banks paying as little interest as one-tenth of one percent, why even bother with a traditional savings account?
There could be a smarter way to reach your savings goals.
Aaron Todd and his wife are working on paying down credit card debt and saving for their son's college education.
But finding a place to put that money was a real challenge.
"We wanted to maximize our return," said Todd.
Todd was wary of stock market risks and interest on savings accounts is practically non-existent these days.
Todd found "Smarty Pig", an online tool that offers a new way to save.
Smarty Pig is like an online piggy bank where depositors choose a specific savings goal. You tell smarty pig what you're saving for and how long until you want to reach your goal.
Smarty Pig then calculates a monthly payment to be withdrawn from your checking account.
The site is backed by an FDIC insured bank and offers an APY of over 3 percent, one of the highest rates in the country right now, CBS station KDKA-TV reported.
Twenty major retailers are offering another incentive.
They allow you to take your money out and put it into a gift card. Then, the store will contribute from 1 to 6 percent to your project. Royal Caribbean cruises, Hyatt hotels and Sandals resorts will contribute to your goal if you book with them, KDKA-TV reported. Overstock.com, Best Buy and Sears do the same.
One consumer advocate says he doubts Smarty Pig will be able to maintain that 3 percent interest rate over the long haul, but it's a great rate right now.
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