SmartyPig is for people who want to save for specific goals. […] Just tell us what you’re saving for, how much you want to save and when you want to reach your goal, and we’ll suggest an automatic monthly deposit you’ll make from your existing checking or saving account until you reach your goal.

An interesting and probably very helpful concept. It’s got a higher interest rate (3.9% APY at the time of writing) than my ING Direct Orange Savings account which just—understandably—dropped from 3.0% APY to 2.75% APY.

The downside: you won’t be earning as much interest as you would if you kept all your savings together. However, the fact that others can contribute to your goals and that you’re looking at “goals” as opposed to account numbers are probably significant benefits.

Of course, it’s FDIC insured.