The business equivalent of Zawinski's Law; every company attempts to expand until it offers financial services.
Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
131–140 of 306 posts
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#132This is the best savings account out there, imo 1. The rate is 0.25 percentage points higher than Goldman’s own Marcus account. Apple extracted 0.25% in rent from Goldman and gave it to their customers. 2. FDIC insured through Goldman, and the max deposit is the FDIC limit, $250k. 3. Easily usable in Apple Pay, so almost like a high interest debit account. I’m moving a bunch of cash over once I set it up edit: unclea…
> I’m moving a bunch of cash over once I set it up
Perhaps I'm misreading the article, but isn't this just for Apple earned rewards, not as a general savings account?
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#133This looks hugely disruptive no?
My Wells Fargo savings accounts both have a 'generous' 0.01 APY so I agree about it's disruptive potential. In the very least it will educate many uninformed folks like myself they are getting shafted at their current banks.
That's not an apples to apples comparison. It's more like people shafting themselves for not evaluating the space of money market savings accounts. You can stay with the same bank and go from a 0.01% rate to 4%+.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#134Earlier quoted context omitted.
Bank accounts are one of the lowest "customer churn" services out there. People typically open a bank account and use it for years and years (which turns into decades on decades). Until someone like Apple comes in with a one click UX to open a bank account and set everything up, existing banks have no incentive to make existing clients happier because they're extremely unlikely to move banks (or even to open a better…
One click setup isn't going to do it. If Apple is providing banking-type services, they're going to need to have support available at the Apple Store. If they don't, banks will beat them every time. Customer support for noney is not something that can be left to a chat window.
Having trouble squaring that with Wise, Revolut, Monzo, Starling, etc. I also don’t think I’ve ever visited Barclays — where I have my primary UK current account — in person ever, other than setting up the account ~10 years ago
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#135This is the best savings account out there, imo 1. The rate is 0.25 percentage points higher than Goldman’s own Marcus account. Apple extracted 0.25% in rent from Goldman and gave it to their customers. 2. FDIC insured through Goldman, and the max deposit is the FDIC limit, $250k. 3. Easily usable in Apple Pay, so almost like a high interest debit account. I’m moving a bunch of cash over once I set it up edit: unclea…
> I’m moving a bunch of cash over once I set it up Perhaps I'm misreading the article, but isn't this just for Apple earned rewards, not as a general savings account?
Maybe you’re right on rereading. Unclear at a minimum.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#136Earlier quoted context omitted.
At what point does an investment with Apple actually become just as safe if not safer than the FDIC? Neither is realistically going to fail, but with the debt ceiling once again rearing it’s head, I have more trust in the leadership of Apple not doing something stupid than I do in the US government not doing something stupid. Governmental incompetency and dysfunction seems like a bigger risk than insolvency of Apple.
> At what point does an investment with Apple actually become just as safe if not safer than the FDIC? Apple would have to be backed by something other than the dollar for this to be remotely possible.
That is assuming that the only reason the government wouldn't pay out FDIC insurance is collapse of the dollar (or that refusal to pay would cause the collapse of the dollar). I don't think that is the case. I would put the odds of the US government doing something stupid much higher than the collapse of either the dollar or Apple.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#137It's interesting that they will not accept any transfer-in, even reject a transfer, if the balance exceeds $250,000. This must be because of the FDIC insurance limit, and hence protects the consumer's savings. Quite the opposite of what some banks are trying to do: offer accounts that try to provide FDIC insurance over 250k by spreading your money among other banks. From the footnote 1: https://www.goldmansachs.com/t…
At what point does an investment with Apple actually become just as safe if not safer than the FDIC? Neither is realistically going to fail, but with the debt ceiling once again rearing it’s head, I have more trust in the leadership of Apple not doing something stupid than I do in the US government not doing something stupid. Governmental incompetency and dysfunction seems like a bigger risk than insolvency of Apple.
depends entirely on how they've set it up legally
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#138Still feel this product is beneath Apple, just feels like very standard banking with an Apple brand lazily plastered over it.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#139I feel somewhat confused; my current Wells Fargo saving account APY is 0.01% where did I go wrong? Seems like I might be shifting my money to a new home. Edit: In the very least it will educate many uninformed folks like myself they are getting shafted at their current banks. Double edit: Thank you for all the helpful links and information!
The federal bank pays 4.9% interest rate right now.[0] This was a new policy enacted in 2008 -- it didn't used to pay interest rates on deposits.
That's the "wholesale" savings interest rate. The less you are making compared to that, the more your bank is profiting.
As an aside, the interest the banks earn from this is newly created money.
With 17 trillion dollars currently deposited, that's $833 billion of inflationary pressure every year.
[0] https://www.federalreserve.gov/monetarypolicy/reserve-balanc... [1] https://fred.stlouisfed.org/series/DPSACBW027SBOG
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#140I feel somewhat confused; my current Wells Fargo saving account APY is 0.01% where did I go wrong? Seems like I might be shifting my money to a new home. Edit: In the very least it will educate many uninformed folks like myself they are getting shafted at their current banks. Double edit: Thank you for all the helpful links and information!
The big banks are offering 0% on deposits while raking massive profits. They can do that because they’re too big to fail, so people put their money there anyway so it will be safe. They get enough deposits, so no need to offer better rates to attract more. Meanwhile money market funds are yielding over 4%. Interactive brokers is offering over 4% and it’s insured to some ridiculous amount (standard 250k + extra covera…
The larger banks simply can't offer high interest rates due to the amount of their deposits. For example, JP Morgan Chase has yearly net income of ~$50 billion. The size of their interest bearing deposits is 1.6 trillion. So every 1% rise in savings account rates costs them $16 billion a year.