SmartyPig Start-up

[Mastermind]

SmartyPig appears to be doing quite well.
http://www.latimes.com/business/la-fi-techecon18-2009mar18,0,5260087.story

The worse things get, the better these companies seem to do. Mike Ferrari, CEO of SmartyPig, a Des Moines company that combines banking and social networking, said he's added five times as many new users this month as he did last month.

[Better Life dude]

We're thinking of starting a couple accounts here - one for each of our kids so they can save their allowances for something worth while - instead of trips to the toy isle at Target. The saving for an annual vacation idea is a good one, too.

West Bank of West Des Moines is the big winner in this venture.

[Mastermind]

Its a no brainer IMO. Current rates
ING 1.50%
SmartyPig: 3.05%

Smarty Pig is consistently 1.5-2% higher than most online only savings programs.

[Mastermind]

http://www.desmoinesregister.com/articl ... 50359/1029

Billionaire invests his trust, money in SmartyPig
By DAVID ELBERT • [email protected] • June 25, 2009

Texas billionaire B.J. "Red" McCombs has made a "significant" investment in SmartyPig, the Des Moines technology startup that mixes savings accounts with social networking by allowing friends and family to make direct contributions to someone's bank account.

This could be the next big thing in online only banks. Good for Smarty Pig and West Bank.

[Better Life dude]

http://www.desmoinesregister.com/article/20090625/BUSINESS/906250359/1029

Billionaire invests his trust, money in SmartyPig
By DAVID ELBERT • [email protected] • June 25, 2009

Texas billionaire B.J. "Red" McCombs has made a "significant" investment in SmartyPig, the Des Moines technology startup that mixes savings accounts with social networking by allowing friends and family to make direct contributions to someone's bank account.

This could be the next big thing in online only banks. Good for Smarty Pig and West Bank.

The creators of Smarty Pig and West Bank definitely hit a home run. The only negative thing I will say is that this kind of idea could be "easily" replicated by competitors. An analogy: before there was the i-Phone, Facebook and Twitter there was MySpace. Before there was Google there was Yahoo.

[spacebetween]

http://www.desmoinesregister.com/article/20090625/BUSINESS/906250359/1029

Billionaire invests his trust, money in SmartyPig
By DAVID ELBERT • [email protected] • June 25, 2009

Texas billionaire B.J. "Red" McCombs has made a "significant" investment in SmartyPig, the Des Moines technology startup that mixes savings accounts with social networking by allowing friends and family to make direct contributions to someone's bank account.

This could be the next big thing in online only banks. Good for Smarty Pig and West Bank.

The creators of Smarty Pig and West Bank definitely hit a home run. The only negative thing I will say is that this kind of idea could be "easily" replicated by competitors. An analogy: before there was the i-Phone, Facebook and Twitter there was MySpace. Before there was Google there was Yahoo.

BDL - True, but if you are Jon Gaskill or Mike Ferrari...you accomplished your dream when you sell the rights and move to an island you own in the Bahamas.

[Mastermind]

also, they have agreements with major online retailers, for redemption of their savings. Ie. Amazon, Blockbuster. Being first has its advantages too, noterity/popularity goes a long way when you have agreements in place with huge multinational companies. Also, its not like Yahoo isnt a great company. Also ive read recently that MySpace has a ton of advertisers where facebook is still trying to catch up.

[Better Life dude]

Duh! I forgot about the part of the creators cashing out. God am I stupid!!!! Go Smarty Pig!!!

[Mototail]

Yea, it helps when Myspace is owned my Rurp Murdock of Fox News

[Mastermind]

Web savings program SmartyPig to move deposits from West Bank

By KAREN MRACEK • [email protected] • January 30, 2010

West Bank expects to part ways with the online savings program SmartyPig this year, the West Des Moines bank said in its earnings release Friday.

"SmartyPig's success in attracting deposits is outgrowing West Bank, and in all likelihood SmartyPig deposits will transition to a much larger bank in 2010," the statement said.

SmartyPig is a Des Moines technology company that mixes savings accounts with social networks. It was created by Des Moines entrepreneurs Michael Ferrari and Jon Gaskell. It allows people to create an e-savings account for a particular goal, such as a new car or trip, to which friends and family can contribute.

http://www.desmoinesregister.com/articl ... -West-Bank

Hopefully they will move their money to a metro bank, or at least keep the deposits in state.

[Mastermind]

Smarty Pig makes Entrepreneur's Magazines top 100
http://blogs.desmoinesregister.com/dmr/ ... brilliant/

[Mastermind]

Anyone on here use Smarty Pig? I'm extremely disappointed in their decision to lower the interest rate from1.1% to 0.7%. Usually they will drop the rate 0.1% point at a time. This drop is inexplicable.

[dogbo]

Anyone on here use Smarty Pig? I'm extremely disappointed in their decision to lower the interest rate from1.1% to 0.7%. Usually they will drop the rate 0.1% point at a time. This drop is inexplicable.

There are money market funds with negative returns for their first time in history so I wouldn't be too suprised by this move.

[Mastermind]

Anyone on here use Smarty Pig? I'm extremely disappointed in their decision to lower the interest rate from1.1% to 0.7%. Usually they will drop the rate 0.1% point at a time. This drop is inexplicable.

There are money market funds with negative returns for their first time in history so I wouldn't be too suprised by this move.

Apple and Oranges. Discover Bank is 1%, Amex 0.9%, Ally Bank 0.89% etc etc. Its the drastic reduction in their rate that concerns me most, not necessarily the rate itself.

[Mastermind]

I'm not alone in my thoughts:
Recent Comments:
Goodbye smartypig I do I know that you're rates won't fall even more Next we'll get an email saying is too...

Looks like you guys are now going to have a problem with no money in your bank

[dogbo]

Well, it is not "apples and oranges" from my understanding as Money Market funds have to invest in the same universe of short-term investment instruments as do banks that are offering interest back to their customers in exchange for their deposits. With historically low interest rates, there simply aren't many (if any) good short term investments available for ANYONE....let alone the financial institutions. Yes (as you indicated), some institutions will offer better rates than others, which brings me to my question.

Since it is unlikely anyone on this forum has the answer, have you contacted Smartypig and asked them for an explanation? I don't have a dog in this fight, but I do think it is only fair (especially given this is a homegrown entity that I assume most on this forum would like to see succeed) to at least give them the benefit of the doubt and contact them to see what is occurring.

[Mastermind]

Well, it is not "apples and oranges" from my understanding as Money Market funds have to invest in the same universe of short-term investment instruments as do banks that are offering interest back to their customers in exchange for their deposits. With historically low interest rates, there simply aren't many (if any) good short term investments available for ANYONE....let alone the financial institutions. Yes (as you indicated), some institutions will offer better rates than others, which brings me to my question.

Since it is unlikely anyone on this forum has the answer, have you contacted Smartypig and asked them for an explanation? I don't have a dog in this fight, but I do think it is only fair (especially given this is a homegrown entity that I assume most on this forum would like to see succeed) to at least give them the benefit of the doubt and contact them to see what is occurring.

Technically the deposits are held in BBVA in 'Bama, which is a large bank. I was disappointed when they ended their agreement with Westbank, but not enough to discontinue my accounts.

[Mastermind]

Good article on the recent endeavors of Smarty Pig. They plan to hire 35 more empolyees this year

http://www.businessrecord.com/main.asp? ... ctionID=98

[dogbo]

Be a real playa...move the operation to Silicon Sixth!!

[casbern]

Be a real playa...move the operation to Silicon Sixth!!

I don't understand why they don't... There is so much synergy to build off of there.

[DMRyan]

And the best part is that they are expanding without taxpayer incentives or corporate welfare. More highly profitable companies should look to this company as an example.

Smarty Pig don't need to feed from the trough!