WestBank, the FDIC-insured financial institution that handles SmartyPig’s online savings account, recently released its fourth quarter earnings results and stated that WestBank and SmartyPig will probably end their association in 2010 because SmartyPig’s level of demand for deposits is outgrowing WestBank.
Here’s what the press release had to say:
West Bank’s deposits totaled $1.25 billion at year end 2009 compared to $1.16 billion a year ago. Deposits associated with SmartyPig, the online savings program developed by Des Moines entrepreneurs, grew $179 million during 2009 and totaled $187 million at year end. 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. West Bank has been planning for this transfer and has adequate liquidity to facilitate that transfer.
