I was doing some research about high-interest online savings account, following my tiring experience with “the world’s local bank”. I stumble upon this very unique online bank site with the cutest design.

It is called SmartyPig.com, a social networking+savings site. You can set up automatic deposit like with most online bank, except that you network with your friends like on Facebook. It allows all your friends to see your progress, it even twitters all the updates. It is great for those who needs supports, or those who can benefit from nosy friends and family pressures.

To bad that it is only available for United States and Australia right now.

Link: SmartyPig (The pig is so cute!)

Don’t be afraid to ask!

December 15, 2008

I was unhappy with the service at “the world’s local bank”, so I cancelled all my accounts with them and merged the money with my accounts at another bank.

I don’t know what to do with the money at this economy, I just set up term deposit. I wanted to set up a ladder system with several accounts, so that there is always one maturing. Just for emergency, you know.

The financial advisor at the bank told me that they provide redeemable term deposit. It is in my best interest to put the whole chunk in one account for six months to earn a higher interest. There is no penalty at all, as long as I keep at least $1000 in the balance. The interest will be calculated accordingly at redemption.

I don’t understand! I mean, if the product is really that good. Why would they offer 30 days term? After an hour, I still don’t understand why they would offer various products if they are all redeemable. Wouldn’t someone just put all the money at 5-year-term for high interest and withdrawal anytime they want? There has to be a catch!

I read the fine print when I got home. Aha! Here’s the catch! If I redeem before maturity, the interest is only 0.25% for that portion. How pathetic! I would have set up the ladder system if I knew.

As a former Math Olympiad geek, I hate when people talk to me like I’m stupid with numbers. But I should have asked more questions! Until I fully understand it! 😦

Oh well, maybe this is going to be good for me. It’ll keep me from spending my savings.