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Online savings accounts have made it easier than ever for families to tuck away money. Though annual percentage yields have steadily declined the past few years at brick-and-mortar banks, online savings banks have offered the highest APYs available, helping to make users’ savings even more valuable. Whether you’re saving for college, a vacation or simply a rainy day fund, online banks have options that can apply to any kind of saver.
SmartyPig is one highly attractive option for families who are saving toward a specific goal. SmartyPig is unique, in that it is one of the only online banks to solely offer savings accounts. Further, SmartyPig users must identify what they’re saving for, and set a monthly contribution goal (however, users will not incur penalties if they set their monthly contribution at $0). Users can then invite their family and friends to view their goal and see their progress. Family and friends can also contribute to the savings goal by adding money to the account for a birthday or Christmas present. Once users reach their savings goal, they can withdraw their funds by transferring them to a bank account, request a debit card or by shopping with gift cards with one of the many retailers that has partnered with SmartyPig.
Ally Bank is another online bank that allows users to create savings accounts and earn a relatively high APY. An online savings account with Ally requires no minimum deposit or balance and no monthly fees. However, Ally users say a drawback of the bank is that they can only make six withdrawals per statement cycle.
