Today I stumbled across a site called Smartypig (www.smartypig.com) that claims to be an online savings account for specific goals. For instance, you might open account to save for a vacation or new car. You can then make your goal public (or not) so that friends and family can help you save toward your goal. The high interest rate is compelling, currently advertising 2.75%, but other than that, I can’t really figure out how this is different from any old savings account.
I can see this working well for raising money for a cause, like someone who needs an expensive surgery. Perhaps young people who are saving for college would find this an easy way for grandparents and others to contribute, though I think the same can be done with a 529 plan.
Hmmm, an interesting concept but am I missing something? Check it out and tell me what you think.
