Smartypig customers face yet another rate cut

If you are a Smartypig customer, you must be disappointed to see that the interest rate on your account has slashed yet again. The online savings bank famous for their higher interest rates has cut rates for a second time in four months, and it has plummeted from 1.75% to 1.35%. That possibly means that Smarty pig is no longer the star of the high-yields savings account it formerly was, but officials are still perturb by the flight of a few customers due to the rate cuts, perhaps indicating that more cuts are a possibility in the future.

They are now neck and neck with other high yield savings accounts. But can Smarty pig really considered a high yield savings account anymore? They are level pegging with American Express and Sallie Mae, but that’s not saying a lot about them. Here’s the bottom-line then. Customers holding a balance of lesser than $50,000 will be entitled to the rate of 1.35% while those that hold more than $50,000 in their accounts will “earn” 0.50%. That’s a big drop from the 2.15% they had at this time last year. In fact, only in September the rate for balances of less than $50,000 was 1.75% after a cut at that time.

Their customers will definitely be disappointed after this move. Some that I know of with Smarty pig accounts had believed the company would continue to be competitive and offer good rates, even after the cut in September, but this is not the case. Bob Weins chenk, the chief executive of Smarty Pig, simply believes that the business model has “evolved” and that they can now move on from the old regime of interest rates.

But there has high-yield been a shift in thinking from the company. Instead of letting customers tie in their cash for a longer time, they instead look towards customers that want to save cash for a shorter the and then spend that cash on whatever it is their heart desires. They even have a prepaid card that offers cash back benefits, and you can bet your bottom dollar that if their interest rates tanks any more, their customers will fall like nine pins.

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