SmartyPig, a newly launched site that brings a community approach to a single savings goal, has deposits skyrocketed up to ten-folds since January this year. In fact, this online banking service has one of the highest rates in the country today, currently at 2.75%. According to the report, the company is still planning to continue its aggressive pricing and marketing, with the goal to grow to a half-billion by the end of the year.
The idea behind SmartyPig is to let customers set a certain goal, and allow other people to contribute to their achieving this savings goal. The company has set up a system that is highly secure where in other party can send money to a customer’s savings account. Once the goal is reached, the customer can withdraw the funds.
The report added, that Red McCombs, co-founder of Clear Channel Communications, has invested with SmartyPig, which is a big help in achieving their target growth before the year ends.
John Gaskell, founder of SmartyPig, says that most of their customers, who have reached a goal, started a new goal. He added that the average amount of deposit of their users is about $200 a month, with an average goal length on about 4.5 years.
Learn more about SmartyPig.
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