Saturday, December 03, 2011

SmartyPig cuts rate big time.

Just saw the email from SmartyPig that they are cutting their rates from 1.10% to .70% for balances under $50k. That's almost a 40% cut! The company basically cites poor market conditions for their reasoning to cut the rate. Guess they will see how this affect their members. Maybe a sizable exit not unlike Netflix saw with their huge rate hike earlier this year.

We opened our SmartyPig account earlier this year. And we'll be closing and transferring funds out before the end of the year. Not a huge deal, but just not worth having a separate account there, in my mind, at this paltry rate. Maybe if they had at least matched rates at ING or Ally we would keep funds in there.

Do you have a SmartPig account? Are you going to close it after hearing this news?

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