By Louis Jones
Kiplinger's Personal Finance
Sunday, November 23, 2008

Remember when we saved for goals instead of pulling out the plastic?

Start-up SmartyPig.com is a Christmas club for the 21st century. The free site helps you set up an online, FDIC-insured savings account at Iowa's West Bank, earmarked for a specific goal.

Tell SmartyPig how much you need to save and when you need the money, and it will suggest a monthly contribution to be deducted from your checking account.

And here's SmartyPig's stroke of genius: You can make your account public so family and friends can chip in toward your goal.

SmartyPig recently offered a generous 3.9 percent annual yield on the account. And the company has partnered with more than 25 retailers, such as Amazon.com and Macy's, where you can redeem your savings for a gift card with a bonus of up to 5 percent.

To start an account, you must commit to a minimum goal of $250 and a $25 deposit. Your timetable must be at least three months and no longer than 50 years.

Redeem funds with a gift card or debit card, or transfer the money back to your checking account.