Cash Rewards: A Smart Idea

December 1, 2010

SmartyPig, a goals-based savings program for folks who might not otherwise have safe/effective ways to save money, has a new prepaid debit card (MasterCard) offering that makes it possible for folks to collect cash rewards for purchases made using their MasterCard prepaid debit cards at select U.S, retailers.

Consumers can load cash onto these prepaid debit cards, and have cash-back rewards applied when they use the cards at participating merchant locations. These are no fee prepaid debit cards, SmartyPig says, that link to online savings accounts. All funds loaded onto SmartyPig/MasterCard prepaid debit cards are FDIC insured.

SmartyPig matches goals-based savings with online social networking. Here's how it works: a participant sets a goal - say $500 for a new PC - asking family and friends to contribute to the cause through social networking sites, like FaceBook and Twitter. The SmartyPig web site is replete with tools for assessing and reaching goals, along with a smattering of inspiration.

As consumers continue pulling back on credit card use, and the economy continues to teeter, SmartyPig Co-Founders Mike Ferrari and Jon Gaskell believe the time is right - "we strongly feel the time has never been better to help consumers get back to the basic idea of sensibly saving for the things they want in life," they wrote in a letter posted to the SmartyPig Web site.

"With consumers today looking for payment tools that can help them with their daily finances, provide added value, and avoid growing bank fees and high-interest credit cards, the SmartyPig Cash Rewards Prepaid MasterCard is a great solution," says Bob Weinschenk, SmartyPig CEO.

"More than ever, we know that consumers are increasingly looking for ways to get more from teh financial services industry, whether it be from payments products in their wallets or from tools to help them become more financially responsible," adds Neil Dugan, Group Head for Global Prepaid Solutions at MasterCard.

At present, SmartyPig deposits earn interest at a rate of 1.75% which is in line with most online savings accounts.

17.2% of Americans reported carrying prepaid debit cards in 2009

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